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Housing And Biotech Stocks Rally

|Includes: AVGO, CELG, CEPH, CSCO, D. R. Horton Inc. (DHI), MDC, NETL, OSIP, PHM, SNY, TOL, V, XNPT, YUM

This morning, pending home sales numbers came in better than expected.  In addition, DHI reported its first profittable quarter in 3 years!  Housing stocks were very strong:  DHI +10.92%, MDC +7.73%, TOL +3.59%, PHM +7.48%.  Biotechs also had a good day with the BTK breaking above 1000, yet another all-time high:  CELG +1.39%, GENZ +2.71%, OSIP +4.38%, CEPH +3.06%, XNPT +8.05%.

After the market, CTRP missed its earnings estimate and saw its stock drop more than 5%.  SOLR jumped +8.22% reporting Q3 EPS of 25 cents vs. the consensus 15 cents.  NETL also delivered a stellar quarter and gave better-than-expected guidance.  Its shares traded +8.49% higher in after-hours.

The Dow was up +111.32 points; SPX added +14.13 points; Nasdaq gained +18.86 points:

HGX (housing) jumped +5.06%!  BTK (biotech) garnered +2.63%.  Commodity sectors climbed higher for a 2nd day:  XME (metals and mining) +1.35%, OIH (oil services) +0.88%, XLE (energy) +1.31%, MOO (agriculture) +1.43%.  USO (oil) and UNG (natural gas) were both higher again.  FXI (Chinese ADRs) glided up +0.71%.


SPX added +14.13 points to close at 1103.32, just above the 1100 level.  The daily MAs started to flatten and the MACD turned up.


Nasdaq gained +18.86 points to close at 2190.06.  Its daily MAs and MACD slid.

It is certainly encouraging to see SPX close above 1100, while Nasdaq had already returned above its support level at 2150.  SPX also closed above its 10-day MA.  Financial stocks became stronger in the afternoon as doubts were casted in the Senate on Volker's ideas for potential regulations on banks.  This certainly helped the market's mood.  After 2 days of bouncing, the market may need a bit of rest tomorrow before some important earnings reports, including those from CSCO, BRCM, V, and YUM, which will all come after the market close.  Commodity sectors have been very strong the past 2 days, helping SPX to rise above 1100.  However, besides biotechs, tech stocks have actually been muted.  We'll see if CSCO and BRCM can bring some life back to the tech stocks.

Good night and HappyTrading! ™

Disclosure: positions: none