The market recovered from some early afternoon selling to extend its win streak to three. The S&P was by far strongest index, finishing 0.41% higher. Much better-than-expected housing starts data this morning put a positive spin on the proceedings, despite poor earnings last night from tech bellwethers IBM (IBM) and Intel (INTC).
IBM added to pre-market losses during the session, finishing the day down 4.91%. INTC was able to pare a portion of its overnight losses, but still finished the day down 2.5%. The weak reports from the two Dow index components are sparking jitters of weakening corporate demand that could permeate much of the tech sector this earnings season. Networking stocks saw weakness today in response today: Cisco (CSCO), F5 Networks (FFIV) and Juniper Networks (JNPR) all finished around 1% lower on the day.
Cree (CREE) did not succumb to the same fate. The Durham, NC based LED light maker finished the day 10.43% higher after handily topping Wall Street estimates.
The market showed good resilience today after looking like it could roll over a bit in the early afternoon. The indices rebounded to close near the highs and cap off an impressive three-day rally. As the S&P starts to get back near pivot highs around 1470, it would make sense to see some digestion of this recent strength. Earnings season so far has not been enough to push strong stocks to new highs, but it has not been a disaster either. Continue to take trades and don't fall asleep at the wheel.
*DISCLOSURES: Scott Redler has no positions