Closing Bell: Stocks Shrug Off Disappointing Housing News, End Higher

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Wednesday, Aug. 21, 2013. U.S. stocks fell, giving the Dow Jones Industrial Average its longest slump in 13 months, as minutes of the Federal Reserve's July meeting showed officials support stimulus cuts this year if the economy improves. Photographer: Scott Eells/Bloomberg via Getty Images
Scott Eells/Bloomberg via Getty Images
Stocks ended Friday trading higher, despite a report showing a big drop in sales of newly built homes, which prompted a selloff earlier in the session.

The Dow Jones industrial average (^DJI) rose 46 points, or 0.3 percent, to 15,010, building on Thursday's gains. The Standard & Poor's 500 index (^GPSC) added six points, or 0.4 percent, to 1,663. and the Nasdaq composite index (^IXIC) gained 19 points, or 0.5 percent, to 3,657, a day after the exchange was shutdown for three hours because of technical troubles.

Data from the Commerce Department showed sales of new single-family homes in the U.S. fell by 13.4 percent in July to an annual rate of 394,000 units, well below expectations of 490,000 units.


The data weighed on homebuilder stocks, with PulteGroup (PHM) down 1.6 percent to $16.06, Toll Brothers (TOL) off 3.9 percent to $31.19 and D.R. Horton (DHI) off 2.9 to $18.73.

After a technological problem shut down trading in Nasdaq securities Thursday, Nasdaq OMX Group (NDAQ) Chief Executive Officer Robert Greifeld said the exchange resolved the technical issues that led to Thursday's trading halt but can't guarantee there would be no future problems.

Time Warner Cable (TWC) is offering free antennas to allow customers to watch CBS (CBS) during a blackout that's in its third week. The companies have been unable to reach a new programming deal since their agreement expired in June. Customers in New York, Los Angeles and Dallas can get a free indoor antenna at their local Time Warner Cable store, or receive a $20 voucher, good for the purchase of an antenna at Best Buy (BBY).

Other Stocks in the News:
  • Microsoft rose 7.8 percent to $34.79 after the software giant announced CEO Steve Ballmer would retire within the next year.
  • Pandora Media (P), the online music streaming company, slid nearly 13 percent to $18.90 after the company issued a disappointing profit outlook for the current quarter.
  • Aeropostale (ARO) slumped 20.2 percent to $8.76 after the teen retailer reported dismal quarterly results and issued a pessimistic outlook. Several other teen retailers including Abercrombie & Fitch (ANF) and American Eagle Outfitters (AEO) have also reported poor customer traffic and slumping sales.
What to Watch Monday:
  • The Commerce Department reports durable goods orders for July at 8:30 a.m. Eastern time.
-Compiled from staff and wire reports.



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seattlewkr

Housing only went up a short time because of all the carpet baggers buying up cheap real estate at low interest rates.

It takes jobs and incomes to buy houses in the long haul. That is not happening. Just wait till the interest rates on mortgages go up a little more. There will be no sales again.

August 26 2013 at 11:51 AM Report abuse rate up rate down Reply
Gumby

Great housing news is always bad for the stock market! Why? People sell stocks to get money for down payment, fees, taxes, etc to purchase homes. It is like a see-saw! Housing goes up, stocks come down. The question is which will happen first? Sometimes stocks suddenly nosedive and next month or two, you get great housing news.. Then stocks work way up again all over again! Those who bought at the highs will waste months or years before they get to where they were before. Great housing news is usually good for retail stocks as people buy furniture, appliances, electronics to help cheer up their new homes! The only question today is will we have great housing news with home prices climbing again? If so, you can hold your stocks or head for the exits !

August 24 2013 at 2:41 PM Report abuse rate up rate down Reply
Kevin

And the economy continues to boom....thank you president Obama!!!!!

August 24 2013 at 7:09 AM Report abuse +4 rate up rate down Reply
toosmart4u

You people have a short memory span. This whole mess was started by your republicans, yup, bush jr. Remember you will get what you vote for and remember the Roman Empire fell from within. We just might be following in their foot prints. Grow up America, do what is best for our country, not you wealthy GOP party.

August 24 2013 at 3:47 AM Report abuse +4 rate up rate down Reply
supermolar

because there is no rationale to the market-just very high speed flash trading that moves the market in any direction the most powerful computer wants it to move in

August 23 2013 at 10:45 PM Report abuse +1 rate up rate down Reply
k4jlp

Darn, my martini isn't dirty enough, waiter, come quick so I can call my broker to dump those contracts.

August 23 2013 at 8:13 PM Report abuse +1 rate up rate down Reply