The stock market rose broadly Tuesday as more key earnings came out and housing data gave a boost to the real estate and construction industries.
The S&P 500 rose 1.3% and the Nasdaq composite gained 1.8%. The Dow Jones Industrial Average jumped 1.2%. The small-cap Russell 2000 led all major indexes, jumping 2.2%.
Volume fell on the NYSE but rose on the Nasdaq compared with the same time on Monday. Advancers outnumbered decliners by 7-to-3 on the NYSE and by nearly 3-to-1 on the Nasdaq.
Johnson & Johnson (JNJ) rose more than 3%, hitting a new high after the drugmaker beat profit expectations but missed sales estimates. J&J also lowered its sales and earnings outlook for the year. And J&J suspended guidance for sales of its Covid-19 vaccine.
Travelers (TRV) sold off nearly 5% in big volume despite that the insurance firm beat profit expectations. Adjusted earnings jumped 55% to $4.22 a share. Revenue rose 6% to $8.809 billion, also above views. Travelers’ shares fell below the 50-day moving average, posing a possible sell signal.
U.S. Stock Market Today Overview
|Last Update: 12:08 PM ET 4/19/2022|
Lockheed Martin (LMT) beat analysts’ earnings expectations but missed sales expectations. Shares fell 0.9% in response. Lockheed earnings came in at $6.44 a share, with revenue at $14.96 billion. Earnings were seen falling 7% to $6.11 per share on a 4% revenue drop to $15.579 billion, according to FactSet.
LMT stock is working toward a 480.09 flat-base buy point. The flat base formed after LMT stock and other defense names soared in late February as Russia’s Ukraine invasion began.
Housing Starts Give Push To Stock Market
In economic news, housing starts and housing permits jumped more than expected in March, giving a strong boost to the housing industry.
Housing permits rose 0.4% to 1.873 million annualized in March from 1.865 million in February. Housing starts rose 0.3% in March to 1.793 million units annualized from 1.788 million in February, which was revised up from 1.769 million in the earlier release. Both numbers were above what economists expected, according to Econoday.
“Housing continues to run red-hot in the United States despite a big jump in mortgage interest rates as the Fed rapidly withdraws monetary stimulus from the U.S. economy,” said Bill Adams, chief economist for Comerica Bank. “With mortgage rates up two full percentage points in the last six months, and housing prices up by a third since the pandemic came to the U.S., more homebuyers are getting priced out of the U.S. housing market.”
The S&P Real Estate Select ETF (XLRE) rose 1.7%. Homebuilders gained, with Builders FirstSource (BLDR) jumping 5.6% and KB Home (KBH) gaining 4.2%.
Investors remain concerned about rising interest rates, inflation and a geopolitical crisis. Still, the S&P 500 rose above its 50-day moving average, a key barrier.
The 10-year Treasury note’s yield rose 3 basis points to 2.90% and is approaching the 3% mark for the first time since December 2018.
The price of U.S. crude oil fell 5% to $102.50 a barrel. Energy Select Sector SPDR (XLE) fell 1%.
Stock Market Big Movers
American Campus Communities (ACC) soared 13% to a new high after Blackstone (BX) agreed to buy the student-housing real estate investment trust. The deal is valued at about $12.8 billion, including debt, and comes as rents are rising and more college students return to campus. Blackstone shares were little changed.
Halliburton (HAL) fell more than 1% in spite of the provider of oilfield services reporting better profit and sales expectations for the first quarter.
Netflix (NFLX) and IBM (IBM) are announcing earnings after the close today. Netflix stock remains depressed, while IBM is trying to climb back above a downward-trending 50-day line.
Innovator IBD 50 ETF (FFTY) rose 0.4%.
Lululemon (LULU) rose more than 4% after Truist Financial upgraded the athletic sportswear company to buy from hold. It also raised the price target to 495 from 390.
Follow Michael Molinski on Twitter @IMmolinski
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