Stock Market Today: Stocks Turn Lower After Disappointing Housing Data
Markets finished lower yet again after data showed a notable decline in homebuilder sentiment.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter

Stocks hinted at a potential rebound early Monday, but hopes for a bounce from last week's Fed-induced selloff faded as the session wore on. This week will likely see lower trading volume than usual in the lead up to the Christmas holiday.
As for market participants who were around today, they were hit with another sign of a slowing economy courtesy of the latest housing data, which only elevated fears of a potential recession in 2023. The major market indexes reacted by adding to their already steep December losses.
The National Association of Home Builders (NAHB) (opens in new tab) this morning said its monthly housing market index, which measures homebuilder confidence, fell to 31 in December from November's reading of 33. That marked the 12 straight month the index has declined, and was the lowest reading since 2012, outside of the pandemic.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The U.S. housing market is the most interest-sensitive sector of the economy and is reflecting the strong increase in interest rates engineered by the Federal Reserve," says Raymond James economist Giampiero Fuentes. Today's NAHB data confirms "that the U.S. housing market is already in recession, and the expectation is for it to remain there until interest rates start to decline."
Energy was the lone sector that finished higher, eking out a marginal gain as U.S. crude futures climbed 1.2% to $75.19 per barrel. Meanwhile, rate-sensitive communication services (-2.3%) and information technology (-1.3%) stocks suffered significant losses. As such, the tech-heavy Nasdaq Composite led the path lower for the major indexes, shedding 1.5% to 10,546. The broader S&P 500 Index (-0.9% at 3,817) and the blue-chip Dow Jones Industrial Average (-0.5% at 32,757) also closed in the red.
Looking ahead, there are a few notable names on this week's earnings calendar, with quarterly results from FedEx (FDX (opens in new tab)) and Nike (NKE (opens in new tab)) due out tomorrow. Earnings from the logistics giant and the athletic footwear and apparel retailer are often seen as a harbinger of activity in the broader economy.
The Best Energy Stocks for 2023
The market needs to mind the Fed. That's according to former Federal Reserve Vice Chair Bill Dudley. "Try as it might, the Federal Reserve can’t seem to break the market’s relative optimism about the outlook for interest rates," Dudley wrote in a weekend opinion piece for Bloomberg (opens in new tab). He says that despite the central bank's best efforts at being as clear as it can in its intentions to bring down inflation no matter the cost, "investors aren't getting the message."
This divergence in outlooks could continue to make markets volatile in the new year as investors keep getting disappointed by a hawkish Fed. As such, Ryan Grabinski, investment strategist at institutional brokerage and advisory firm Strategas, says he's "a bit more cautious" heading into the new year, and favors defensive sectors like consumer staples and healthcare.
Grabinski is also upbeat on energy, given its focus on returning capital to shareholders via dividends and stock buybacks. "And while energy probably would fall in the event of a deep recession, so would most sectors," Grabinski adds. "It's just a matter of picking the ones that sell off the least, and we think there are some structural forces in favor of energy." With that in mind, here are the best energy stocks to buy now. Oil and gas prices are likely to cool in the new year, but analysts are targeting major upside for these eight names.
With over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
-
Gaining More Certainty in Your Retirement Income Plan
Relying on market performance to close the gap in your retirement income could let you down, but a CD ladder and fixed annuities could provide some certainty.
By Cole Czajkoski, Investment Adviser Representative • Published
-
Considering a 1031 Exchange? The Rules You Need to Know
Taxes are an inevitable part of investing in real estate. You can, however, defer or avoid paying capital gains taxes by following some simple rules of a 1031 exchange. Yes, you read that correctly!
By Daniel Goodwin • Published
-
Stock Market Today: Stocks End the Week on a High Note
Intel stock plunged after a big earnings miss, but encouraging inflation and consumer sentiment data created tailwinds for the broad market.
By Karee Venema • Published
-
Kiplinger's Weekly Earnings Calendar (Jan. 30-Feb. 1)
stocks Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
By Karee Venema • Published
-
Stock Market Today: Stocks Climb After Tesla Earnings, GDP
The electric vehicle maker reported record profit and revenue for the fourth quarter.
By Karee Venema • Published
-
Stock Market Today: Microsoft Earnings Weigh on Stocks
While Microsoft reported top- and bottom-line beats in its fiscal Q2, shares declined on disappointing guidance.
By Karee Venema • Published
-
The S&P 500 Dividend Aristocrats Are Getting 3 New Members
Dividend Aristocrats The index of stocks that have upped their dividends for at least 25 straight years is about to get bigger.
By Dan Burrows • Last updated
-
Stock Market Today: Dow Gains After Busy Day of Blue-Chip Earnings
Travelers and 3M were two Dow components that reported earnings today.
By Karee Venema • Published
-
Stock Market Today: Stocks Climb After Spotify Job Cuts
Spotify became the latest company to announce layoffs, while Salesforce climbed on activist investor news.
By Karee Venema • Published
-
Stock Market Today: Netflix, Alphabet Lead Rally in Tech Stocks
Netflix reported much higher-than-expected subscriber growth, while Wall Street cheered Alphabet's layoff announcement.
By Karee Venema • Published