Nasdaq Dips as GM and Lockheed Slide; Housing and Gold Stocks Rally Strongly
The tech-heavy Nasdaq fell 81.49 points (0.4%) to 20,892.69, the S&P 500 inched up 4.02 points (0.1%) to 6,309.62 and the Dow climbed 179.37 points (0.4%) to 44,502.44.
General Motors (GM) plunged by 8.1% after the automaker reported second quarter earnings that exceeded analyst estimates but were down sharply year-over-year. Lockheed Martin (LMT) also tumbled by 10.8% after reporting weaker than expected second quarter revenues. Overall trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Housing stocks substantially moved upside, driving the Philadelphia Housing Sector Index up by 6.7% to its best closing level in over five months. D.R. Horton (DHI) helped lead the sector higher, soaring by 17% after reporting better than expected fiscal third quarter results. Gold stocks were significantly strong , as reflected by the 3.1% jump by the NYSE Arca Gold Bugs Index. With the gain, the index reached its best closing level in over twelve years. Oil service, biotechnology and steel stocks also saw considerable strength while semiconductor, networking and computer hardware stocks moved downwards.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index slipped by 0.1%, while China's Shanghai Composite Index climbed by 0.6%. Meanwhile, European stocks moved mostly lower on the day. The German DAX Index slumped by 1.1% and the French CAC 40 Index slid by 0.7%, although the U.K.'s FTSE 100 Index bucked the downtrend and inched up by 0.1%.
In the bond market, treasuries saw further upside following the notable advance seen in the previous session. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, fell 3.6 bps to 4.33%.
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