After Market: S&P Hits New High on Strong Housing Numbers

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Records fell on Wall Street Friday as another solid report on housing lifted the market for the second day in a row. There's a three-day weekend coming up -- something that often prompts investor caution -- but the gains were broad-based even though volume was fairly light. The VIX, which measures volatility, fell to its lowest level this year.

The Dow Jones industrial average (^DJI) gained 63 points, the Nasdaq composite (^IXIC) rose 31, and the Standard & Poor's 500 index (^GPSC) added 8, topping the record high set last week.

The Dow Transportation average also raced to an all-time high, lifted by airline stocks. United (UAL) soared more than 4 percent; Delta (DAL) gained more than 1 percent and Southwest (LUV) gained 2 percent. Southwest is at an all-time high, up 79 percent from a year ago.

New home sales bounced back with a better than expected 6.4 percent increase last month. Lennar (LEN) and D.R. Horton (DHI) both rose 4 percent. Pulte (PHM), Beazer (BZH) and Hovnanian (HOV) also solid posted gains.

Earnings continue to drive retail stocks.
  • Gap (GPS) edged higher even though net fell.
  • Foot Locker (FL) gained 1½ percent after topping expectations.
  • GameStop (GME) rose 4 percent. Its net rose, helped by the rollout last year of new Xbox and PlayStation consoles.
  • Zumiez (ZUMZ) rose 5½ percent on an earnings beat.
  • But Aeropostale (ARO) tumbled 24 percent. Its loss widened and sales declined. The retailer continues to struggle with teen fashion trends.

Also on the earnings front, TiVo (TIVO) rose 2 percent as it swung to a profit from a year ago loss. It also reported an increase in the number of subscribers.

Hewlett-Packard (HPQ) rose 6 percent on news the company plans to eliminate up to 16,000 additional workers in an effort to cut costs.

And several stocks extended big moves from yesterday. Best Buy (BBY) rose more than 3 percent for the second straight day after earnings beat expectations. Isis Pharmaceuticals (ISIS) jumped another 11 percent. And RetailMeNot (SALE) dropped another 6 percent thanks to a report that its coupon site has lost about one-third of its traffic following changes to Google's search algorithms. But the company says the report grossly overstates the impact of the Google change.

Finally, PTC Therapeutics (PTCT) soared 32 percent after winning conditional EU approval for its treatment of Duchenne Muscular Dystrophy.

What to Watch Monday:
  • U.S. stock and bond markets are closed for Memorial Day.
What to Watch Tuesday:
  • The Commerce Department releases durable goods for April at 8:30 a.m. Eastern time.
  • Standard & Poor's releases the S&P/Case-Shiller index of home prices for March and the first quarter at 9 a.m.
  • The Conference Board releases the Consumer Confidence Index for May at 10 a.m.
  • Retailers AutoZone (AZO) and Wet Seal (WTSL) release quarterly financial statements.
-Produced by Drew Trachtenberg.


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74 Comments

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SPQR

Yup that overpriced home can now be justified ! You feel rich once again so time to go shopping and get that Audi !!

May 28 2014 at 11:21 AM Report abuse rate up rate down Reply
jpfmtka

Our investment portfolio is going very well, our home has appreciated about 15% since purchased in 2009 with properties in our neighborhood selling for asking (mid to high 400,000's and up) before even hitting the market. Purchasers are all younger families, no investors, no foreclosures, just folks that had a plan since day one . For all the naysayers and critics that assign every inevitability to the government, I guess you will have to congratulate the current administration for the wellbeing, affluence, success and happiness of all of us that are loving our lives!

May 25 2014 at 12:02 PM Report abuse +1 rate up rate down Reply
1 reply to jpfmtka's comment
SPQR

Time to go buy that 1 million dollar home !!!

May 28 2014 at 11:22 AM Report abuse rate up rate down Reply
dopey.obamite

I'm gonna make a pitcher of margaritas and finish watching this documentary on Iron Maiden

See ya

May 23 2014 at 11:37 PM Report abuse -6 rate up rate down Reply
1 reply to dopey.obamite's comment
ign.cmk

Hopefully you mean the torture device, not the crappy band.

May 26 2014 at 5:01 PM Report abuse rate up rate down Reply
dopey.obamite

LMAO....obama votee yes on TARP because he was a community organizer supporting bush. Fckn hilarious.

May 23 2014 at 11:31 PM Report abuse -5 rate up rate down Reply
1 reply to dopey.obamite's comment
clark8642

It's called sarcasm.

May 23 2014 at 11:32 PM Report abuse rate up rate down Reply
dopey.obamite

Clark.....what did bush sign to cause the crash?

May 23 2014 at 11:16 PM Report abuse -3 rate up rate down Reply
3 replies to dopey.obamite's comment
SPQR

In 2006 B. Spears bared her genitals and that was the signal for everyone to go buy an over priced home.

May 23 2014 at 10:38 PM Report abuse +1 rate up rate down Reply
SPQR

Karina is HOT

May 23 2014 at 10:17 PM Report abuse -2 rate up rate down Reply
SPQR

Just wait! McDonalds workers will riot soon. The experiment to use cheap labor is about to backfire big time !

May 23 2014 at 10:14 PM Report abuse -3 rate up rate down Reply
1 reply to SPQR's comment
korrectionelecshun

deport all illegal immigrants that obamit let "break" into america, along with the 36,000 he released from our jails into america to kill n rob all Americans . !!!!

May 24 2014 at 12:43 AM Report abuse -3 rate up rate down Reply
SPQR

" Nowhere else to Invest" propels market UP! Easy but tricky profits to be made with super computers.
The light is on "fasten your seatbelts" we expect to have some turbulence.

On the positive side, Kim K is getting married so expect the market to soar on the uplifting news

May 23 2014 at 10:00 PM Report abuse -3 rate up rate down Reply
clark8642

Interesting set of comments. Democrats saying that things are getting better. Republicans letting us know how badly they think things have deteriorated since Bush left and praying that they don't get better. Maybe when we all start rooting for America we will all be better off.

May 23 2014 at 9:11 PM Report abuse +5 rate up rate down Reply
2 replies to clark8642's comment
dopey.obamite

Where did you read anyone "praying things don't get better"?

May 23 2014 at 9:27 PM Report abuse -4 rate up rate down Reply
3 replies to dopey.obamite's comment
dopey.obamite

Maybe when some stop trying to fundamentally transform America, we'll all be better off.

May 23 2014 at 9:31 PM Report abuse -4 rate up rate down Reply
10 replies to dopey.obamite's comment