Dow ends lower for straight five sessions
U.S. stocks once again ended mixed on Tuesday, 20 August 2013 with the S&P 500 halting its longest losing streak this year, as retailers including Best Buy beat estimates and as Wall Street looked to clues about future U.S. monetary policy.
The Dow Jones Industrial Average ended at 15,002.99, down 7.75 points, or 0.1%, extending its losing streak to five sessions. The S&P 500 index climbed 6.29 points, or 0.4%, to 1,652.35, with consumer discretionary and financials pacing sector gains. The Nasdaq Composite added 24.50 points, or 0.7%, to 3,613.59.
Unaffected by another round of losses across emerging markets, stocks climbed at the open, but gains were limited.
Key data points this week will be the Federal Reserve's FOMC minutes that are released on Wednesday and some Chinese economic data on Thursday. Traders will be looking at the minutes for some clarity on the near future path of U.S. monetary policy. Minutes of the Federal Open Market Committee's July 30-31 meeting due on Wednesday may signal when policy makers plan to taper the $85 billion of monthly bond purchases.
Traders and investors are still watching the Egypt unrest, which continues to see violence between citizens and government militia.
A retreat in Treasury yields contributed to the relative strength of equities as the benchmark 10-yr yield fell seven basis points to 2.82%.
The relative strength of home builders provided a measure of support to the discretionary sector, which ended atop the leaderboard. In addition, retailers rallied after Best Buy, Home Depot, TJX Companies and Urban Outfitters all reported solid results. Meanwhile, J.C. Penney advanced 6.0% despite missing on earnings and revenue while Dick's Sporting Goods sank 7.8% following its disappointing report.
While most cyclical sectors displayed strength, industrials and technology underperformed. The tech sector was pressured by its top component, Apple which lost 1.3%.
For every share declining, roughly three gained on the New York Stock Exchange, where 634 million shares traded. Composite volume approached 3 billion.
There was no economic data reported today, but tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET and July existing home sales will be reported at 10:00 ET. Lastly, the Federal Open Market Committee will release the minutes from its July meeting at 14:00 ET.
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