The S&P 500 closed higher by 0.30% and the Dow was up 0.20%. Homebuilders, technology and materials were the three worst performing sectors. Healthcare, utilities and energy outperformed. Homebuilders traded lower after disappointing pending home sales and earnings from Pulte. Materials were lower on poor earnings from Cliffs Natural Resources.
Healthcare was higher on positive earnings surprises from biotech stocks. Money continued to rotate out of higher risk areas of the market and shifted funds to utilities.
Pending home sales moved up in September. Pending home sales increased 0.3% in September against an expected rise of 2.5%. Pending homes sales increased 8.5% year over year. Housing indicators remains strong but recent pending home sales data has been disappointing after recent robust numbers.
Financials traded with the market. Banks traded better than the overall sector. Insurance names traded off after a recent strong run to highs.
Industrials were slightly better than the overall market. Multi-line industrials were strong performers. Aerospace issues were laggards today.
Energy traded better than the overall market. The sector was up 1% on the day and crude traded down 0.5% and natural gas traded 1% lower.
Source: PFS Group
