Dow Leaps 200 Points But Catastrophic Housing Data Menaces Market
The Dow leaped more than 200 points on Tuesday, but catastrophic housing data threatens to menace the stock market recovery. | Source: Johannes Eissele / AFP
By CCN: The Dow and broader U.S. stock market returned to strength on Tuesday after the Commerce Department temporarily rolled back trade restrictions against Huawei, the Chinese telecommunications giant. But beneath the surface, the U.S. economy is showing signs of persistent weakness that could come back to haunt the bull market.
Dow Regains Footing; S&P 500, Nasdaq Follow
Following back-to-back declines, the U.S. stock market was back on the offensive Tuesday, mirroring a strong pre-market for Dow futures. All three major indexes reported gains, with the Dow Jones Industrial Average climbing 203 points, or 0.8%, to 25,883.68.
The broad S&P 500 Index of large-cap stocks gained 1% to 2,868.51. Ten of 11 primary sectors reported gains, with materials and information technology leading the way.
A strong performance in the technology sector catapulted the Nasdaq Composite Index to significant gains. The technology-focused benchmark climbed 1.3% to 7,803.82.
U.S. Home Sales Decline Unexpectedly
— David Stockman (@DA_Stockman) May 21, 2019
America’s flailing housing market showed further signs of weakness last month as existing home sales fell unexpectedly.
Home re-sales, which account for the lion’s share of the domestic real estate market, declined 0.4% in April to a seasonally adjusted annual rate of 5.19 million,