Stocks were hit with a second day of selling, as the energy sector (-2.3%) retreated following its recent run higher and data showed new housing starts fell dramatically in April.
"Commodities markets are self-correcting… [and] what sometimes happens is a surge in prices can sap demand," says Michael Reinking, senior market strategist for the New York Stock Exchange.
"This was somewhat on display this morning as the new housing starts number fell 9.5% (month-over-month) following the well-documented surge in lumber prices over the last year. There is still plenty of underlying demand as building permits were flat m/m."
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One bright spot today was Walmart (WMT, +2.2%), which jumped after the mega-retailer reported stronger-than-expected Q1 results and raised its full-year forecast.
"Walmart was the top-performing member of the Dow today based on a positive earnings surprise and implications that big box stores are weathering the coronavirus reopening phase in good shape," says David Keller, chief market strategist at StockCharts.com.
"The stock jumped up to $145 earlier today, taking the stock above key trendline resistance and continuing the recovery from a low around $125 in earlier March. Walmart would need to remain above the $135 level to continue its current bullish trend. The real question for WMT is the sustainability of recent price gains in the face of broad selling pressure for equities and uncertainty about economic conditions in the coming months."
WMT's strength wasn't enough to keep the Dow Jones Industrial Average in the black, with the index falling 0.8% to 34,060 on weakness in oil major Chevron (CVX, -3.0%). The S&P 500 Index followed suit, shedding 0.9% to 4,127.
Other action in the stock market today:
- The Nasdaq Composite couldn't hold on to earlier gains, falling 0.6% to 13,303.
- The Russell 2000 dropped 0.7% to 2,210.
- Home Depot (HD, -1.0%) reported first-quarter earnings and revenues that easily beat estimates. The Dow stock still closed lower amid broad-market headwinds.
- U.S. crude futures gave back 1.2% to settle at $65.49 per barrel.
- Gold futures eked out a fractional gain to end at $1,868.00 an ounce.
- The CBOE Volatility Index (VIX) spiked 8.2% to 21.34.
- Several high-profile retail earnings roll in this week, with Cisco Systems (CSCO) among the top ones to watch.
Buffett's Latest Stock Picks
The most important announcement over the past 24 hours, for Buffettologists at least, was the release of Berkshire Hathaway's (BRK.B) latest holdings list.
Warren Buffett, the famed CEO of Berkshire, revealed his firm's highly anticipated 13F filing on Monday night, showing the Oracle of Omaha and his team did a lot more selling than buying in the first quarter of 2021.
In addition to reversing course on a Dow stock that Berkshire had just piled into in the second half of 2020, Buffett continued to take a hatchet to the Berkshire Hathaway equity portfolio in big bank stocks. There was some notable action on the buy side, too, with "Uncle Warren" boosting his stake in a major grocery chain and opening a new position, fittingly, in the insurance industry.
To see which stocks Buffett bought and sold to start the year, read on as we take a closer look at the 18 moves he made in his portfolio over the most recent quarter.
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M&A Is Why UnitedHealth Group Stock Is in of the 100,000% Return ClubUnitedHealth has given a master class in mergers and acquisitions over the years.
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How GLP-1 Drugs Could Revolutionize RetirementGLP-1 drugs like Ozempic and Wegovy are already changing the way we age and manage chronic conditions.
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How to Invest in the Nuclear RevolutionAccording to Energy Secretary Chris Wright, "The long-awaited American nuclear renaissance must launch during President Trump's administration."
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Stock Market Today: Dow Dives 748 Points as UnitedHealth Sells OffA services-sector contraction and a worse-than-anticipated consumer sentiment reading sent bulls scrambling Friday.
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Stock Market Today: Growth Concerns Drag on StocksForward-looking commentary from a major retailer outweighed its backward-looking results as all three major equity indexes retreated on Thursday.
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Walmart Is the Worst Dow Jones Stock After Earnings. Here's WhyWalmart stock is sinking Thursday as the retail giant's dreary outlook offsets a fourth-quarter earnings beat and dividend hike. Here's what you need to know.
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Stock Market Today: Trump Tariff Threats Keep Pressure on StocksThe president warned of 25% tariffs being levied on automobiles, semiconductor chips and pharmaceutical imports.
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7 of Warren Buffett's Biggest MissesWarren Buffett's investing wins are highly regarded across Wall Street, but no one can bat a thousand. Here are some of Buffett's biggest misses.
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Stock Market Today: Stocks Gain to Start the Short WeekStocks struggled for direction Tuesday, though Intel made a beeline higher on M&A buzz.
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Stock Market Today: It's Mostly Onward and Upward for EquitiesThe major U.S. equity indexes were mixed Friday but closed an eventful week for earnings and data modestly higher.
