U.S stocks saw mixed results today after mixed macro data, as the Dow dropped just slightly and lagged behind the the S&P and the Nasdaq, which gained 1.6 and 13.95 points respectively. The New York Fed’s manufacturing index fell into negative territory in August for the first time since last October on declining order flow and increased costs. However, the the CPI for July was unchanged month over month, and industrial output rose 0.6%. Capacity use also increased for the month, as did the National Association of Home Builders’ housing market confidence index.
In corporate news, Staples (SPLS) fell 15% after the retailer lowered its full-year outlook following poor quarterly results. Deere also fell after reducing full-year estimates, losing over 6% and citing weakness in international markets. On the other end of the spectrum, ANF rose nearly 10% after better than expected earnings and an increased share buyback program helped to offset poor sales results. Cisco also reported solid earnings after the close and hiked the dividend 75% to 14 cents a share.
All in all, the bears couldn’t seem to sustain the downward momentum from yesterday despite muted action in Apple (AAPL) and Google (GOOG), as the SPY managed to close above $140. Stocks like Amazon (AMZN) and Priceline (PCLN) and big retailers like Target (TGT), Home Depot (HD), and Walmart (WMT) helped to lead the push higher and buoy stocks. If we continue to hold these higher levels, the bears could start to feel some pain.
Disclosure: Scott Redler is long AAPL, AMZN, LNKD, POT, GE, and LEN and short SPY