After Market: Nasdaq Reconquers 4,000; Housing Rebound Rolls Ahead


The Nasdaq conquered a milestone, housing stocks kept building on their 2013 gains, and jewelers' earnings shone brightly on Tuesday. The Nasdaq composite index (^IXIC) soared past the 4,000 level for the second day in a row, but this time it held on and closed there – the first time that's happened since September of 2000.

The Dow Jones industrial average (^DJI) and the Standard & Poor's 500 index (^GPSC) an edged up just a fraction of a point each, but the Nasdaq jumped 23 to close above 4017.
Housing starts
Homebuilders rallied on reports showing building permits rose strongly last month, and prices continued to increase. Lennar (LEN) gained 5 percent, while Pulte (PHM), KB Home (KBH) and D.R. Horton (DHI) all rose more than 4 percent.

Retail stocks were mostly higher as stores geared up for Black Friday.

Jewelry chains sparkled. Tiffany (TIF) soared 9 percent as its earnings easily topped expectations and the company raised its outlook for the current quarter, due to growth in China and Japan. Zale (ZLC) rose more than 3 percent and Blue Nile (NILE) gained 2 percent.

In general, the retailers in the sweet spot have been those catering to high-end shoppers. Coach (COH) gained 3 percent and Macy's added 1 percent.

And an interesting takeover battle has broken out between two men's clothing retailers. Men's Wearhouse (MW) rose 7 percent after launching a bid for rival Jos. A Bank (JOSB), which gained 11 percent. Last month, Men's Wearhouse rejected a unsolicited buyout offer from Jos. A Bank. So it appears that they want to combine. It's just not clear who's going to be the buyer.

But DSW (DSW), the discount shoe chain, fell 5 percent on a disappointing forecast.

Also on the Earnings Front:
  • Barnes & Noble (BKS) fell 6 percent. It swung to a profit, but sales were lower.
  • Cracker Barrel (CBRL) lost 7 percent on weak traffic at its restaurants.
  • Nuance (NUAN) tumbled 18 percent. The maker of speech conversion software missed on revenue. Its growth has slowed dramatically.
  • Hormel (HRL), best known for its Spam and chili, gained 6 percent on strong earnings.

What to Watch Wednesday:
  • The Commerce Department releases two reports for October -- durable goods; and personal income and spending -- both at 8:30 a.m.
  • The Labor Department releases weekly jobless claims at 8:30 a.m.
  • Freddie Mac releases weekly mortgage rates and the Conference Board releases its survey consumer sentiment for November at 10 a.m.
-Produced by Drew Trachtenberg.

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\"Housing Rebound Rolls Ahead\"

LOL !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

November 27 2013 at 9:00 AM Report abuse +1 rate up rate down Reply

construction is booming in seattle

November 27 2013 at 6:14 AM Report abuse rate up rate down Reply

By the way , like a lot of minor investors , ur utilities got hammered today !

November 26 2013 at 8:43 PM Report abuse rate up rate down Reply

Hitting the nail , right on the head rlynn2578, interesting day today , 27 cents & 28 cents on the dow & s&p , but , the greeds racked up the nasdaq to where they wanted it !!!!!!!!!

November 26 2013 at 8:40 PM Report abuse rate up rate down Reply

Such a spin on reality. The devil is in the details. Single family home permits were only up .8%, and all of those probably won\'t result in building a home. That was barely mentioned all day. All of the gain was in multi-family units (mostly apartments). More people have to rent after the housing crisis. Hardly positive news for America, but Wall Street decidied to fatten their wallets more off of bads news instead of doing something to improve the economic and social issues that continue to get worse. It is simply more wealth trickling up from middle America to the 1%. Just another example of the disconnect between Wall Street and Main Street. The greater the disconnect, the larger the bubble will be when it bursts. There is a steep price to pay for all of this some day.

November 26 2013 at 5:47 PM Report abuse +4 rate up rate down Reply

"Housing rebound?" That's a joke. The only new homes I see being built here on Long Island are a few custom builds here and there, which are already sold. As for existing home sales, the inventory is slim, so that is pushing prices up just a bit. Still very hard to qualify for a mortgage, and many people don't want to commit to a new home loan with the fear of being unemployed next year.

November 26 2013 at 5:32 PM Report abuse +3 rate up rate down Reply

permits do not equal houses

November 26 2013 at 5:03 PM Report abuse +1 rate up rate down Reply