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US open: Stocks fall back despite stronger-than-expected data

By Alexander Bueso

Date: Tuesday 15 Aug 2017

US open: Stocks fall back despite stronger-than-expected data

(ShareCast News) - Wall Street's main market gauges pulled back after an initial push higher at the start of trading despite a slate of better-than-expected readings on the economy.
As of 1517 BST, the Dow Jones Industrials was down by 0.01% or 2.05 points at 21,990.47, alongside a dip of 2.07 points or 0.09% to 2,463.62 for the S&P 500 and a 10.12 point or 0.16% fall on the Nasdaq Composite to 6,330.70.

Meanwhile, December 2017 gold futures on COMEX were 1.05% lower at $1,276.10/oz. as the US dollar spot index added 0.61% to 93.98.

Losses for stocks also came despite what traders said were more conciliatory remarks from Pyongyang and Washington overnight.

To take note of, the Chicago Board of Options Exchange's VIX volatility was little changed, ticking down by just 0.57% to 12.26, in a possible display of caution on the part of traders.

Commenting on the situation on the Korean peninsula, Stuart Culverhouse and Hasnain Malik at Exotix Capital said: "While the world is well used to colourful and bellicose statements from North Korea, we think there are two reasons why the situation is now more concerning than perhaps at any other time over the past 20 years or so (eg compared to the first nuclear test in 2006 and attacks against South Korea in 2010)."

Those two reasons were the considerable progress made since by Pyongyang on its nuclear programme and the unpredictable nature of the current North Korean and US leaders.

Much-better-than expected economic data

Retail sales volumes sped ahead by 0.6% on the month in July to reach $478.9bn, according to the Department of Commerce (consensus: 0.4%), following an upwardly revised gain of 0.3% in the month before.

In parallel, the Federal Reserve bank of New York's regional manufacturing sector gauge rocketed from a reading of 9.8 in July to 25.2 for August (consensus: 10.0) a three-year high.

The NAHB's homebuilders' confidence index improved from the eight-month low of 64 hit in July to a reading of 68 in August (consensus: 65).

Yields on the benchmark 10-year US Treasury note rose by four basis points to 2.26% on the back of Tuesday's data.

On a related note, overnight the president of the Federal Reserve bank of New York, William Dudley, told AP another interest rate hike in 2017 was likely, so long as the economy behaved as he expected.

Still on the economic calendar for Tuesday, data on long-term capital flows in June were scheduled for release at 2100 BST.

On the corporate front, Home Depot was in the spotlight after the DIY specialist bumped up its full-year guidance for sales and profits, projecting that they will increase by 5.3% and 13%, respectively.

Shares in Dick's Sporting Goods on the other hand crashed after the retailer posted second quarter earnings per share of 96 cents (consensus: $1.0) alongside a full-year outlook for earnings per share and same-store sales that fell short of analysts' forecasts.

TJX Cos. was also trading on the front foot after reporting better-than-expected second quarter earnings and sales.

GoPro was benefitting from an upgrade out of Goldman Sachs from 'sell' to 'neutral'.

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $32.16 1.01%
Goldman Sachs Group Inc. (GS) $229.47 0.93%
American Express Co. (AXP) $86.07 0.70%
JP Morgan Chase & Co. (JPM) $93.10 0.66%
International Business Machines Corp. (IBM) $143.10 0.55%
Procter & Gamble Co. (PG) $92.07 0.46%
Merck & Co. Inc. (MRK) $62.93 0.41%
Pfizer Inc. (PFE) $33.44 0.38%
Apple Inc. (AAPL) $160.42 0.36%
Travelers Company Inc. (TRV) $129.23 0.34%

Dow Jones - Fallers

Home Depot Inc. (HD) $150.50 -2.44%
Nike Inc. (NKE) $58.96 -1.37%
Chevron Corp. (CVX) $107.84 -0.80%
Verizon Communications Inc. (VZ) $48.44 -0.70%
Intel Corp. (INTC) $36.13 -0.59%
Microsoft Corp. (MSFT) $73.17 -0.58%
General Electric Co. (GE) $25.27 -0.34%
United Technologies Corp. (UTX) $116.75 -0.34%
Exxon Mobil Corp. (XOM) $78.08 -0.19%
Boeing Co. (BA) $236.90 -0.11%

S&P 500 - Risers

Wynn Resorts Ltd. (WYNN) $132.14 3.09%
Synchrony Financial (SYF) $30.52 2.97%
United States Steel Corp. (X) $24.00 2.87%
Fifth Third Bancorp (FITB) $27.20 1.95%
Royal Caribbean Cr (RCL) $121.93 1.94%
Alcoa Corporation (AA) $37.83 1.71%
Discover Financial Services (DFS) $61.42 1.52%
Comerica Inc. (CMA) $72.70 1.44%
Sysco Corp. (SYY) $51.82 1.43%
TJX Companies Inc. (TJX) $70.56 1.35%

S&P 500 - Fallers

Advance Auto Parts (AAP) $86.72 -20.67%
Coach Inc. (COH) $42.15 -12.04%
Transocean Ltd. (RIG) $7.80 -7.09%
Diamond Offshore Drilling Inc. (DO) $10.60 -5.86%
AutoZone Inc. (AZO) $500.51 -4.72%
Urban Outfitters Inc. (URBN) $16.93 -4.48%
Genuine Parts Co. (GPC) $80.59 -3.80%
Signet Jewelers Ltd (SIG) $54.17 -3.78%
O'Reilly Automotive Inc. (ORLY) $191.93 -3.28%
Murphy Oil Corp. (MUR) $24.42 -3.17%

Nasdaq 100 - Risers

Wynn Resorts Ltd. (WYNN) $132.50 3.37%
Mylan Inc. (MYL) $30.21 1.96%
Idexx Laboratories Inc. (IDXX) $156.87 0.99%
Shire Plc Ads (SHPG) $149.08 0.89%
Cisco Systems Inc. (CSCO) $32.07 0.71%
Paypal Holdings Inc (PYPL) $59.39 0.56%
Broadcom Limited (AVGO) $252.26 0.54%
JD.com, Inc. (JD) $44.47 0.50%
Apple Inc. (AAPL) $160.59 0.46%
Biogen Inc (BIIB) $287.34 0.45%

Nasdaq 100 - Fallers

Tractor Supply Company (TSCO) $52.31 -3.18%
O'Reilly Automotive Inc. (ORLY) $192.26 -3.12%
Liberty Interactive Corporation QVC Group (QVCA) $22.32 -2.23%
Expedia Inc. (EXPE) $145.07 -1.70%
Ctrip.Com International Ltd. Ads (CTRP) $51.70 -1.49%
Ross Stores Inc. (ROST) $53.97 -1.47%
NetEase Inc. Ads (NTES) $274.65 -1.42%
Intuit Inc. (INTU) $136.99 -1.37%
Dentsply International Inc. (XRAY) $53.56 -1.35%
Mattel Inc. (MAT) $17.23 -1.12%

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