Stocks Bounce Back Despite Mixed Economic News

Strategic Insights -

Tuesday's trade saw stocks recover from early losses and close the day higher, despite a mix of economic news and company reports. The Dow Jones industrial average led the gains, with a 0.8% increase, followed closely by the Nasdaq and S&P 500, which each rose 0.6%. Increased volume on both the NYSE and the Nasdaq contributed to the market's upward momentum.

Key Takeaways:

  • The Dow Jones industrial average led the gains with a 0.8% increase, followed by the Nasdaq and S&P 500, which each rose 0.6%.
  • Nissan reported a 4% gain in November auto sales, year over year, while Fiat Chrysler saw a 3% rise in sales.
  • The Institute of Supply Management's November manufacturing ISM Index dropped to 48.6, indicating sector contraction.
  • Researcher Markit's manufacturing purchasing manager's index dipped to 52.8, down from 54.1 in October but a shade better than the 54.6 tally forecast by economists.
  • Construction spending rose a healthy 1% in October, ahead of views for a steady rate of increase.
  • Boeing rose more than 2%, as well as UnitedHealth, Merck, and JPMorgan.
  • Joy Global dropped 12% after Bank of America downgraded the stock to underperform.
  • Cummins shares dropped more than 4% after Bank of America downgraded the diesel maker.
  • Thor Industries saw a 6% jump after reporting fiscal first-quarter sales and earnings topped analyst consensus views.
  • CDW rebounded nearly 2% and is in buying range after Goldman Sachs initiated coverage with a buy rating.
  • LGI Homes jumped 3% and is in an undefined pattern since October 21.

Statistics:

  • The Dow Jones industrial average rose 0.8% on Tuesday.
  • The Nasdaq and S&P 500 each rose 0.6% on Tuesday.
  • Volume rose about 10% on both the NYSE and the Nasdaq relative to Monday.
  • Nissan reported a 4% gain in November auto sales.
  • Fiat Chrysler saw a 3% rise in sales.
  • The Institute of Supply Management's November manufacturing ISM Index dropped to 48.6.
  • Researcher Markit's manufacturing purchasing manager's index dipped to 52.8.
  • Construction spending rose a healthy 1% in October.
  • Boeing shares rose more than 2%.
  • Joy Global shares dropped 12%.
  • Cummins shares dropped more than 4%.
  • Thor Industries saw a 6% jump.
  • CDW rebounded nearly 2%.
  • LGI Homes jumped 3%.

Sources:

  • Investor's Business Daily
  • Nissan (OTCPK:NSANY)
  • Fiat Chrysler (NYSE:FCAU)
  • Institute of Supply Management
  • Researcher Markit
  • Commerce Department
  • Boeing (NYSE:BA)
  • UnitedHealth (NYSE:UNH)
  • Merck (NYSE:MRK)
  • JPMorgan (NYSE:JPM)
  • DuPont (NYSE:DD)
  • Wynn Resorts (NASDAQ:WYNN)
  • Joy Global (NYSE:JOY)
  • Bank of America
  • Cummins (NYSE:CMI)
  • Thor Industries (NYSE:THO)
  • CDW (NASDAQ:CDW)
  • Goldman Sachs
  • LGI Homes (NASDAQ:LGIH)
  • CBOE (NASDAQ:CBOE)