Wall Street Tunes Out Trump's Tariff Tantrum, New Home Sales Dropped

Barry Adams
26 Nov, 2024
New York City

Stock market indexes wavered on Wall Street as investors ignored the latest threat of higher tariffs. 

The S&P 500 index increased 0.2% and the Nasdaq Composite advanced 0.4% after leading specialty retailers reported mixed quarterly results. 

Abercrombie & Fitch estimated strong sales growth in the coming holiday season, and Dick's Sporting Goods lifted its annual earnings outlook after comparable same-store sales accelerated in the third quarter. 

On Wall Street, the Dow, the S&P 500 index, and the Russell 2000 notched fresh new highs as positive investor sentiment supported the latest rebound in the market. 

New home sales in October dropped 17.3% from the previous month following the surge in mortgage rates, according to the latest report from the U.S. Census Bureau. 

New home sales dropped to an annual rate of 610,000 from the unrevised 738,000 and fell at the fastest pace since 2013 and fell to the lowest level since 2022, after two hurricanes, Helene and Milton, struck in the month. 

New home sales dropped 9.3% from a year ago, driven by a 19.7% plunge in sales in the South. 

Home prices in the month increased, despite the decline in sales. 

The median home price increased to $437,300, and the average home price rose to $545,800, an increase of $11,000 from the previous month, respectively. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,996.34, the Nasdaq Composite rose 0.4% to 19,122.41, and the Russell 2000 index inched lower 0.8% to 2,432.72. 

The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched lower to 4.29%, and 30-year Treasury bonds decreased to 4.49%.

WTI crude oil increased $0.69 to $69.56 a barrel, and natural gas prices edged up 1 cent to $3.44 a thermal unit.

Gold decreased by $19.02 to $2,629.47 an ounce, and silver advanced by $0.39 to $30.50.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.77.

 

U.S. Stock Movers 

Abercrombie & Fitch declined 5.2% to $146.41 after the specialty apparel retailer reported third quarter results.

Revenue in the fiscal third quarter ending on October 28 increased 14% to $1.20 billion from $1.05 billion, net income advanced to $131.97 million from $96.5 million, and diluted earnings per share edged higher to $2.50 from $1.83 a year ago. 

Comparable same-store sales in the quarter soared 16%, and the retailer revised fourth quarter sales growth to between 5% and 7%. 

The apparel retailer also lifted its full-year sales outlook to between 14% and 15%, from the previous estimated range between 12% and 13%. 

The current annual sales outlook includes an adverse impact from the loss of 120 basis points from the loss of an extra week in 2023. 

Best Buy Company declined 5.4% to $88.0 after the consumer electronics retailer reported weaker-than-estimated revenue and earnings in the third quarter.

Revenue in the fiscal third quarter ending on November 2 declined to $9.44 billion from $9.75 billion, net income increased to $273 million from $263 million, and diluted earnings per share rose to $1.26 from $1.21 a year earlier. 

Comparable domestic same-store store sales declined to 2.8% from 7.3%, and the retailer adjusted its full-year comparable sales estimate to decline in the range of 2.5% and 3.% from the previous estimated range of decline between 3.0% and 1.5%. 

The company also lowered its full-year sales range to between $41.1 billion and $41.5 billion, from the previous guidance between $41.3 billion and $41.9 billion. 

Dick's Sporting Goods jumped 8.4% to $233.24 after the outdoor goods retailer posed strong third quarter earnings and lifted its annual outlook, driven by demand improvement during the back-to-school shopping season. 

Revenue in the fiscal third quarter ending on November 2 increased 0.5% to $3.06 billion from $3.04 billion, net income advanced 13% to $228 million from $201 million, and diluted earnings per share rose 15% to $2.75 from $2.39 a year earlier. 

Comparable same-store sales in the quarter accelerated to 4.2% from 1.9% a year ago, and the company raised comparable sales growth guidance for the full-year to a range of 3.6% to 4.2% from the previous range between $2.5% and 3.5%. 

The company also raised full-year 2024 earnings per diluted share guidance to a range of $13.65 to 13.95, up from the previously estimated range between $13.55 and $13.90. 

Kohl's Corp. declined 18% to $14.97 after the department store operator said its chief executive Tom Kingsbury would step down.

Ashley Buchanan, chief executive of crafts store chain The Michal's Companies, will replace Kingsbury effective January 15. 

Zoom Video Communication decreased 5% to $84.57 after the video communication company reported fiscal fourth quarter earnings that met investor expectations.