The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Monday Tee Up: A Big Week

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are ServiceNow Inc (NOW); ASML Holding NV (ASML); United Rentals, Inc. (URI); Target Corp (TGT) and the Focus List deletions are Canadian Pac Kansas City Ltd (CP); Salesforce Inc (CRM); D.R. Horton Inc. (DHI); Seagate Tech Hldgs Pl (STX).

The U.S. economy generated 199,000 new jobs in November, above our forecast of 145,000 and the consensus of 180,000. October's result was unrevised at 150,000. November's increase in payrolls took the three-month average to 204,000, which is below the 12-month average of 240,000. The unemployment rate dropped to 3.7% from 3.9%. These statistics support our view that the job market is cooling and that there is less than a 50% chance of a recession in 2024. This morning's report from the Bureau of Labor Statistics (BLS) should not change the Fed's plans to hold the funds rate at 5.25%-5.5% when it meets next week, but it may delay the timing of a rate cut. Average hourly earnings increased 12 cents month-to-month and are now 4.0% higher year-over-year, consistent with October (which was revised lower). The average workweek ticked up to 34.4 hours in November. Job gains occurred in healthcare and government. Employment also increased in manufacturing, as workers returned from a strike. Employment in retail trade declined. Employment was little changed in mining, quarrying, and oil and gas extraction; construction; wholesale trade; financial activities; professional and business services; and other services. Job gains in September and October were revised lower by 35,000. According to a separate report from the BLS, there were 1.3 job openings in October for each person unemployed. This is down from 1.7 a year earlier. The ratio has averaged 0.68 since December 2000. After this morning's report, stock futures were little changed and the yield on the 10-year Treasury rose to 4.23% from 4.19%. Before the release, futures suggested a 98% probability that the Fed will stand pat when it meets next week, with no change after the release. The chance of a 25-basis-point rate cut when the Fed meets in March declined to 47% from 50% before this morning's report.

Monetary policy is tighter than it appears, but it may have peaked in July and started to ease according to our analysis of the Proxy Funds Rate, an analytical tool tracked and updated monthly by the Federal Reserve Bank of San Francisco. At the end of October, the rate was 6.7% compared with the official fed funds target of 5.25%-5.5%. It peaked at 7.1% in July and has declined through October. The rate recognizes that central bankers in the twenty first century use many tools (not just short-term interest rates) to meet their "dual mandate" of stable prices and maximum sustainable employment. The Fed uses forward guidance to communicate the direction of monetary policy and influence longer-term interest rates and broader financial conditions. The Fed also can expand its balance sheet through the large-scale purchase of Treasury and Mortgage Backed Securities, which is known as quantitative easing, or reduce its holdings, which is known as quantitative tightening. The Proxy Funds Rate uses the analysis of 12 financial variables, including Treasury rates, mortgage rates, and borrowing spreads, to translate the full range of policy actions into an analogous level of the funds rate, That can help assess whether policy is tighter or easier than the official funds rate suggests. In a November 2022 San Francisco Fed Economic Letter, the developers of the proxy rate noted the following: "As the FOMC increasingly used forward guidance and the balance sheet, the proxy rate has tended to lead the actual funds rate, reflecting the fact that financial markets are forward looking." It could be a good sign for conventional Fed watchers if the proxy rate peaked in July. The letter also noted that "combined policy tools have a more complex effect on the economy than the federal funds rate indicates." That suggests to us that Fed watchers should become even more diligent.

Stocks rose on Friday morning as investors continued to weigh comments from Fed Chair Powell and other central bank officials, along with new consumer confidence data. The University of Michigan said that its preliminary consumer sentiment index for November fell to 60.4, down from a final October reading of 63.8 and below the Reuters consensus forecast of 63.7. On the earnings front, Illumina shares fell 13%, despite above-consensus 3Q EPS, after the company projected substantially lower shipments of its NovaSeq X gene-sequencing system. The Dow rose 0.5%, the S&P 0.8%, and the Nasdaq 1.2%. Crude oil traded near $77.50 per barrel, while gold fell more than 1% to $1943 per ounce.

The Mortgage Bankers Association, the National Association of Realtors, and the National Association of Home Builders sent the Fed a message of "profound concern" via a recent joint letter. With mortgage rates at a 23-year high and mortgage applications at the lowest level since 1996, the important trade groups asked the Fed to make two clear statements to the market. First, the Fed does not contemplate further rate hikes and, second, the Fed will not sell any of its mortgage-backed securities until and unless the housing finance market has stabilized and historically high mortgage-to-Treasury spreads have normalized. Amid an historic shortage of affordable housing, the groups said the best way to tame shelter costs that have been boosting CPI is to "facilitate the construction of attainable, affordable housing." The 30-year fixed-mortgage rate rose to 7.63% recently, according to Freddie Mac, and hasn't been below 6.5% since May. The trade groups told the Fed that market uncertainty about rate hikes has pushed mortgage rates higher than they would otherwise be and is costing homebuyers an extra $245 a month on a standard $300,000 mortgage. Homebuilder' confidence declined for a third month in October and existing-home sales for September declined 15.4% from prior-year levels (to a 13-year low of 3.96 million homes at a seasonally adjusted annual rate). We expect new-home sales for September to rise to 650,000 (SAAR) from a year earlier, but decline from 675,000 in August. The S&P/Case-Shiller National Home Price Index for August will be released on October 31. We expect home prices to remain elevated. Existing-home prices were up 2.8% in September. In this tumultuous housing market, Argus recommends Lennar, D.R. Horton and Toll Brothers -- companies that are adapting to market conditions.

Vickers Stock Research, a subsidiary of Argus Research Group, tracks and analyzes insider trading and institutional stock ownership trends. Institutions must file a Form 13F to report their holdings, and it is due 45 days after the end of calendar quarters. So these forms have now come in from 2Q23. We like to review the 13Fs of major activist investors, including Carl Icahn, Trian Fund Management, Jana Partners, and ValueAct Holdings, among others, in order to determine their core holdings and new purchases. Activist investing has evolved in recent years and is now less about generating a short-term return on an underpriced stock and more about achieving long-term returns through an active management/investor partnership. Activists have made progress in the past year with high-profile investments into companies such as Fedex and Union Pacific. According to Vickers, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers such as Warren Buffet of Berkshire Hathaway and Ken Griffin of Citadel Advisors LLC.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Old Dominion Freight Line, Inc (ODFL); D.R. Horton Inc. (DHI); Northrop Grumman Corp. (NOC); Albemarle Corp. (ALB) and the Focus List deletions are Corteva Inc (CTVA); Sonoco Products Co. (SON); RTX Corp. (RTX); Cracker Barrel Old Country Sto (CBRL).

The U.S. economy generated 187,000 new jobs in July, just above our forecast of 180,000 and June's 185,000 (revised lower from 209,000). The unemployment rate declined to 3.5% from 3.6%. In recent comments after hiking the funds target by 25 basis points to a range of 5.25%-5.50%, Fed Chairman Powell offered the following: "Reducing inflation is likely to require a period of below-trend growth and some softening of labor market conditions." Slower job creation from May's 281,000 new jobs and a low unemployment rate after more than a year of tightening suggest the Fed is on track to delivering a soft landing. Average hourly are 4.4% higher year-over-year, an unchanged pace from June. The average workweek ticked lower to 34.3 hours in July. Job gains occurred in healthcare, social assistance, financial activities, and wholesale trade. Employment was little changed in mining, quarrying, and oil and gas extraction; manufacturing; retail trade; transportation and warehousing; information; and government. Job gains in May and June were revised lower by 49,000. After the jobs report, stock futures were higher and the yield on the 10-year Treasury declined by one basis point. Before the release, futures suggested an 18% probability that the Fed will raise its target range by 25 basis points to 5.50%-5.75% at its September meeting. After the release, that probability was down slightly at 17.5%. The outcome of the Federal Open Market Committee's vote in September is far from settled. "We're going to be careful about taking too much signal from a single reading," Powell said last week. Members will see another employment report on September 1, as well as CPI and PPI numbers next week and again during the week of September 11. The Fed's next move will depend on "the totality of the data," Powell emphasized

Monday Tee Up: Another Fed Hike?

"There are simply not enough homes for sale." That's a quote from Lawrence Yun, chief economist at the National Association of Realtors. The inventory of existing homes declined 13.6% from a year ago, with 76% of homes sold in June on the market for less than a month. "The market can easily absorb a doubling of inventory," Mr. Yun added. D.R. Horton, the biggest U.S. homebuilder based on deliveries, reported a 37% increase in 3Q orders despite higher mortgage rates. "The supply of both new and existing homes at affordable price points remains limited and demographics supporting housing demand remain favorable," said Donald Horton, chairman of Horton. The 30-year fixed mortgage rate was 6.78% last week, up from 5.54% a year earlier, according to Freddie Mac. The NAR reported that existing home sales in June dropped 18.9% from June 2022, contributing to the first half's 23% decline, which Mr. Yun called a "downer." Sentiment from the National Association of Home Builders is better, with new home sales up 20% year-over-year in May. The NAHB/Wells Fargo Housing Market Index rose for the seventh straight month in July, to 56. A reading above 50 indicates that more builders see conditions as good than poor. The S&P/Case-Shiller National Home Price Index edged higher for a third month in April after notching seven straight monthly declines. If January marked the bottom of the price correction, it was a mild one (down just 5.1% from the June 2022 peak). The index was down 0.2% year-over-year in April, which was the first such decline since April 2012. In this tumultuous housing market, Argus recommends home builders including D.R. Horton, Lennar, and Toll Brothers, which are adapting to market conditions and a shortage of supply.

We all have to live somewhere. Housing always is a topic of conversation, especially now, with interest rates elevated and more uncertainty ahead. Many economists opine on the state of the housing market but the bottom line is that the supply of homes is low and demand is high. Those homeowners with low interest rates want to keep them and don't want to move. The S&P Homebuilders Index is up 32% year-to-date, outperforming the broader S&P 500 index (which is up 16%). We see more runway for the homebuilders as the shortage of homes is not a short-term event. The lack of affordable housing comes from 10 years of underproduction, according to the National Association of Home Builders. The NAHB puts the deficit at 1.5 million residences as of February 2023. The association calls the lack of affordable housing a "crisis." Also, there currently are about 75 million Baby Boomers trying to age in place while 77 million Millennials are hitting the home-buying age. For sure, the spike in mortgage rates is hurting affordability. During this past 10-year period, we saw 30-year fixed-mortgage rates fluctuate very little, between a band of between 2%-5%. That has changed drastically in the past two years, as 30-year fixed-mortgage rates have skyrocketed from 2.7% in July 2021 to 6.7% in July 2023. Rents have remained high as well, making that option unattractive and keeping interest in owning homes high. Also, the jobs market has been strong, so consumers can afford to place a down payment. Given the current housing environment, here are some Argus Research BUY-rated stocks that we believe represent opportunities to invest in the housing sector.

For a third consecutive week, insider-sentiment data from Vickers Stock Research suggests that corporate executives, directors, and beneficial owners recognize the strong stock-price gains that have been logged since mid-March -- but now may believe that a pause or some consolidation is in order. Are those same sentiment signals suggesting a significant correction is just ahead? Not yet.

Larry Mizel, the executive chairman of MDC Holdings, offered the following in the company's recent earnings release: "2023 is off to a great start. Thanks to a combination of improved market conditions and strategic pricing initiatives, we have seen a rebound in home buying activity to start the year." MDC focused on generating sales versus maintaining price. Mr. Mizel said he believes that is the correct approach in a market where buyers are motivated but remain sensitive to affordability. Sellers of existing homes are slowly adjusting to that approach as well. The National Association of Realtors reported that the median existing-home sales price declined 1.7% from April 2022 to $388,800. While the drop appears small, it is the biggest year-over-year decline in more than 11 years, according to the Wall Street Journal. Prices rose in the Northeast and Midwest, but declined in the South and West. The S&P/Case-Shiller National Home Price Index also has been trending lower, although it did notch a small increase in February after seven monthly declines. On a year-over-year basis, the average price in February was up just 2.05%, according to S&P/Case-Shiller. The pace of existing home sales in April declined 3.4% from March to 4.28 million at a seasonally adjusted annual rate. Sales were down 23.2% from April 2022. The inventory of existing homes was 2.9 months in April, up from 2.2 months a year earlier. Homes remained on the market for 22 days in April, up from 17 days a year earlier. Still 73% of the homes that sold in April were on the market for less than a month. In this tumultuous housing market, Argus recommends home builders that have a national presence and are adapting to market conditions and a shortage of supply.

We don't often see stock-market polls from fellow technicians, but invitees at an event celebrating the 50th anniversary of the Chartered Market Technicians Association in NYC were asked to forecast how the S&P 500 (SPX) would end the year. With the index drifting sideways for the past year, it's not surprising that a majority (55%) expected the index to remain range bound between 3,750 and 4,250 -- which is where we have been for most months going back to 2022. This is one of the basic tenets of technical analysis: the trend is your friend, until it isn't. It also is known as recency bias: what recently happened is expected to continue, as it is the freshest in the mind of most investors. The poll did tilt toward the bullish side, with 31% looking for a move on the SPX to above 4,500, while 11% were bearish.

Our list this week identifies companies that received an Argus target-price increase in April. As the stock prices of these companies approached their target prices, Argus analysts saw those prices going even higher. We are in the thick of earnings season and our analysts are scouring quarterly reports to evaluate how the companies they follow are doing. With economists busy analyzing economic data to determine whether the economy might slip into recession, companies have been attending to their businesses. Some are weathering current economic conditions better than others. The economic pressures are real - including rising interest rates, inflation, the strong dollar, and wavering consumer spending patterns. These stressors are on top of normal competitive pressures, as companies fight to sell their products and services, outmaneuver peers, and make profits. Looking back at April, our analysts found companies where the business outlook is solid - and went through the mechanics of our valuation framework to adjust target prices upwards. Our framework includes analysis of historical multiples, peer multiples, and future dividends and cash flows. Here are the stocks on which we raised target prices in April. All are rated BUY at Argus.

The major indices were little changed on Friday morning, as gains in the Consumer Discretionary and Staples sectors were offset by declines in Financials, Energy, and Materials. On the earnings front, Procter & Gamble shares rose more than 3% after the company posted better-than-expected fiscal 3Q earnings, helped by price increases and strong sales of new products, and raised its full-year sales forecast. Hospital operator HCA Healthcare also rose 5% after reporting strong 1Q results and raising its sales and earnings guidance. The Dow fell 0.1%, the S&P fell 0.1% and the Nasdaq was flat. Crude oil rose to $78 per barrel, while gold dropped $31 to $1988 per ounce.

According to homebuilder D.R. Horton, the spring selling season is off to an encouraging start. While higher interest rates and economic uncertainty may persist for some time, the company said that the supply of affordable homes remains limited and demographics remain favorable. The builder helped things along by lowering prices and building smaller homes. The news on existing homes isn't quite as rosy. The National Association of Realtors announced that existing home sales in March declined 2.4% from February, to 4.4 million at a seasonally adjusted annual rate. Sales were down 22% from February 2022. Why the dichotomy? Professional builders are acting aggressively to generate cash flow, maximize return on capital, and grab market share. Individual sellers have less incentive, especially if moving means accepting a lower price. Almost 70% of existing mortgages have a rate below 4% according to the Federal Reserve Bank of Dallas. Moving and giving up a 4% mortgage for one at the current 30-year fixed-rate of 6.39% would cost an additional $1,168 per month on a $300,000 loan. That helps to explain why the inventory of existing homes is low. But whether sellers like it or not, home prices are coming down. The S&P/Case-Shiller National Home Price Index for January notched a seventh straight monthly decline. The average price was still up 3.8% year-over-year. The National Association of Realtors reported that home prices in March declined 0.9% year-over-year to $375,700. In this tumultuous housing market, we recommends builders like D.R> Horton, Lennar, and Toll Brothers who are adapting to market conditions and a shortage of supply. And despite the Fed's tightening, we believe Home Depot and Lowe's are well positioned to serve homeowners who are going to stay put and make home improvements.

Market breadth is sitting in neutral territory, with both bullish and bearish characteristics. Until breadth becomes overwhelmingly bullish, it is impossible for technicians to describe the current stock market as anything more than a sideways consolidation following a bear market. In other words, the price action of the major indices, despite big moves since last October, is simply neutral when we take a few steps back.

Stocks were mostly higher in volatile trading on Thursday morning, led by the Energy and Consumer Discretionary sectors. GDP data was stronger than expected. In its advance estimate, the Commerce Department said that the U.S. economy expanded at a 2.9% annualized rate in 4Q, above the Bloomberg consensus forecast of 2.6% though down from 3.2% growth in 3Q. The Dow was flat, the S&P rose 0.3%, and the Nasdaq rose 0.7%. Crude oil rose nearly 2% to $81.50 per barrel, while gold fell $17 to $1926 per ounce.

What does the S&P 500 have to do to post positive returns in 2023? That is a trick question, and nobody knows what will happen next year (or any year). But the average long-term market return is a safe answer -- and during more-normal times, most strategists will be near the average (with bearish and bullish outliers). Yet for 2023, strategists are all over the map -- with some seeing sub-3,000 or lower while others are looking for a rally back to all-time highs of 4,800 or higher. The median is between 3,900 and 4,100.

We are lowering out intermediate-term technical outlook to neutral from bullish. Our upgrade to bullish was made on October 6, with the S&P 500 (SPX) at 3,745. The upgrade was a bit early, as the index bottomed four days later with a closing low of 3,577. From that low, the SPX advanced 14% at its peak on November 30.

Last week, we talked about the recent weakness in the U.S. Dollar Index (USD) and the bullish implications that weakness has for emerging markets. The greenback peaked on an intraday basis on September 28, pulled back and range traded for a little over a month, and then broke sharply lower last week. The low on Tuesday was $105, which is close to chart support and the rising 200-day average.

Stocks soared on Thursday morning after lower-than-expected inflation data raised prospects for a slowdown in Federal Reserve rate hikes. The Labor Department said that its core consumer price index, excluding food and energy costs, rose 6.3% from the prior year in October, down from 6.6% in September and below the Bloomberg consensus forecast of 6.5% growth. The Dow jumped 2.7%, the S&P 4.1%, and the Nasdaq 6.1%. Crude oil rose to $87 per barrel, while gold rose $33 to $1747 per ounce.

In this edition, Chip Shortages chip away at Auto Sales, Construction-Related Stocks See Risks and Opportunities, Innovent Biologics Remains a Top Pick, and Gap, Workday, and Elastic

The S&P 500 fell by 1.2% on Tuesday, the Nasdaq gave up 1.9%, and the QQQs fell 2% as investors brace for a major EPS reporting week as well as today's FOMC decision. At this point, and since the mid-June low, all three of the above indices look about the same on a daily chart. The "500" fell right to its 50-day average yesterday, while the Nasdaq and QQQs finished just above their 50-day average. All three have broken below recent breakout levels, but only by a small amount -- so the short-term uptrend is intact.

The S&P 500 fell by 1.2% on Tuesday, the Nasdaq gave up 1.9%, and the QQQs fell 2% as investors brace for a major EPS reporting week as well as today's FOMC decision. At this point, and since the mid-June low, all three of the above indices look about the same on a daily chart. The "500" fell right to its 50-day average yesterday, while the Nasdaq and QQQs finished just above their 50-day average. All three have broken below recent breakout levels, but only by a small amount -- so the short-term uptrend is intact.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Monday Tee-Up: Fed, Inflation Data, GDP, and Earnings

Stocks rose on Wednesday morning after recent sharp losses as investors awaited the Fed's interest rate announcement this afternoon. Based on recent hot inflation data, the Fed is now expected to move even more aggressively than initially planned, with a 75-basis-point hike. The Dow rose 0.5%, the S&P 0.9%, and the Nasdaq 1.6%. Crude oil fell to $118 per barrel, while gold rose $10 to $1823 per ounce.

Stocks rose modestly on Wednesday morning following Tuesday's massive selloff. Microsoft shares rose 6% after the company posted stronger-than-expected fiscal 3Q results and projected double-digit revenue growth for the next fiscal year. On the negative side, Alphabet shares fell 3% after disappointing first-quarter sales and earnings. The Dow rose 0.3%, the S&P 0.4%, and the Nasdaq 0.4%. Crude oil fell slightly to $101.50 per barrel, while gold dropped $18 to $1886 per ounce.

Stocks fell on Wednesday morning, giving back some of their recent gains as investors weighed new GDP and employment data. The Commerce Department said that the U.S. economy expanded at a 6.9% annualized rate in 4Q, down from its prior estimate of 7.0% growth and below the Reuters consensus forecast of 7.1%. Payroll provider ADP said that U.S. private employers added 455,000 payroll jobs in March, down from a revised 486,000 in February but slightly above the consensus forecast of 450,000. The Dow fell 0.1%, the S&P 0.5%, and the Nasdaq 0.7%. Crude oil rose 4% to $108.50 per barrel, while gold rose $21 to $1939 per ounce.

Stocks were mixed on Friday morning following a strong monthly employment report. The Labor Department said that the U.S. economy added 467,000 payroll jobs in January, well above the consensus forecast of 125,000. The report also showed a strong increase in December payrolls, which were revised up to 510,000 from the 199,000 reported last month. The official unemployment rate edged up to 4.0% from 3.9% in December. The Dow fell 0.3%, the S&P was flat, and the Nasdaq rose 0.8%. Crude oil jumped to nearly $93 per barrel, while gold traded near $1808 per ounce.

This is among our most-important themes for 2022, and stretches across industries. We think companies that raise their dividends consistently at a double-digit rate are sending off three important signals amid all the recent market volatility: 1) the company's balance sheet is strong enough to pay a dividend; 2) management is focused on providing shareholder returns; and 3) management is confident enough in the near-term outlook to raise the payout aggressively. This third factor is especially important as the pandemic upends the nation's recent record of long-term economic growth. Here are 12 stocks that meet our double-digit dividend test and are on the Argus BUY list. They are also holdings in our Dividend Growth Separately Managed Account and in the Dividend Growers Total Return Trust, sponsored by SmartTrust.

Stocks edged higher on Friday morning, led by the Technology and Communication Services sectors. Johnson & Johnson announced that it would split into two companies, one focused on pharmaceuticals and the other on consumer health products. On the employment front, the Labor Department, in its monthly JOLTS report, said that U.S. job openings slipped to 10.4 million on the last day of September, down from 10.6 million a month earlier but above the Reuters consensus forecast of 10.3 million. The Dow rose 0.1%, the S&P 0.3%, and the Nasdaq 0.4%. Crude oil traded near $81 per barrel, while gold fell slightly to $1864 per ounce.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Bank of New York Mellon Corp (BK); Alphabet Inc (GOOGL); Emerson Electric Co. (EMR); TJX Companies, Inc. (TJX) and the Focus List deletions are D.R. Horton Inc. (DHI); Activision Blizzard Inc (ATVI); Trane Technologies plc (TT); Lazard Ltd. (LAZ).

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Stocks continued their rally on Friday morning amid strong earnings reports from American Express and Twitter. However, Intel shares fell more than 6%, despite solid second-quarter results, after the company projected declining gross margins over the remainder of the year. The Dow rose 0.5%, the S&P 0.8%, and the Nasdaq 0.8%. Crude oil traded near $72 per barrel, while gold fell $6 to $1799 per ounce.

Stocks were largely flat on Wednesday morning. The Commerce Department reported that May new home sales fell 5.9% to a seasonally adjusted annual rate of 769,000 with a median price of $374,400. IHS Markit said that U.S. manufacturing PMI rose to a reading of 62.6. Bitcoin retraced yesterday's losses. The S&P was nearly flat, the Nasdaq was up 0.1% and the Dow was down 0.1%. Crude oil traded near $73 per barrel, while gold rose $10 to $1787 per ounce.