• Major US stock indices closed mainly in the red

Notícias do Mercado

19 novembro 2019

Major US stock indices closed mainly in the red

Major US stock indexes mostly fell, suffering from a fall in stocks of retailers such as Home Depot (HD) and Kohl's (KSS).

Home Depot (HD) reported quarterly earnings of $ 2.53 per share, as analysts had expected. However, the company's quarterly revenue was below market forecast. In addition, home improvement retailer showed disappointing comparable sales: the company said global comparable sales were up 3.6%, while analysts surveyed by Refinitiv had expected 4.7% growth. HD shares fell 5.39%.

Kohl's (KSS) reported quarterly earnings of $ 0.74 per share, which was below the average forecast of $ 0.86. The company's quarterly revenue exceeded market forecasts, but comparable sales, a key indicator for retailers, fell short of expectations. KSS shares fell 19.43%.

Both companies also released disappointing worsened forecasts for the whole of 2019, which put pressure on the entire sector.

Market participants also analyzed data from the Commerce Department, which indicated that US housing construction recovered in October. According to the data, housing construction increased by 3.8% to a seasonally adjusted annual rate of 1.314 million units, while single-family house construction has been growing for the fifth month in a row, and activity in the unstable multi-family sector is confidently recovering. September data was revised to 1.266 million units from 1.256 million units. Economists forecast housing construction to rise to 1.320 million units in October.

Most DOW components completed trading mixed (15 in the black, 15 in the black). Outsider were the shares of The Home Depot (HD; -5.39%). The biggest gainers were Visa Inc. (V; + 1.65%).

Most S&P sectors recorded an increase. The health sector grew the most (+ 0.8%). The largest decline was shown in the raw materials sector (-0.9%).

At the time of closing:

Dow 27,934.02 -102.20 -0.36%

S&P 500 3,120.18 -1.85 -0.06%

Nasdaq 100 8,570.66 +20.72 + 0.24%

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