(MENAFN- ProactiveInvestors) U.S. stocks dropped after data showing housing starts surged to a seven-year high bolstered speculation the may raise interest rates this year.
The S&P 500 (INDEXSP:.INX) slipped 0.1 percent to 2126 at 3:48 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) was flat at 18300 while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) skidded 0.2 percent to 5066.
DATA:
Housing starts jumped 20.2 percent to a 1.14 million annualized rate the most since November 2007 from a 944000 pace in March a Commerce Department report showed today in Washington. The median forecast of 83 economists surveyed by Bloomberg was 1.02 million. More permits a proxy for future construction were issued than at any time since June 2008.
An improving labor market and mortgage costs close to multi-year lows are reviving residential construction a sign that the weakness in early 2015 was probably due to harsh winter weather.
That backs the ’s view that a slowdown in first-quarter economic growth was likely temporary as policymakers debate the timing of raising interest rates. Minutes from the ’s April meeting will be released tomorrow.
MOVERS:
Wal-Mart () fell 4.5 percent to $76.30 after the world’s largest retailer’s first-quarter profit and sales fell short of expectations.
() fell 1.5 percent to $112.61 erasing an earlier gain. The home-improvement retailer posted a rise in first-quarter earnings and sales. It raised its sales guidance for fiscal 2015 and said it would buy back another $3.4 billion in shares over the rest of that year.
() slumped 16.3 percent to $34.06 after the specialty retail company reported quarterly sales that fell short of market estimates.
Dick's Sporting Goods () slipped 5 percent to $53.54 as the sporting goods retailer’s comparable-store sales increase of 1 percent was shy of the 1.5 percent consensus.
Royal Caribbean Cruises (NYSE:RCL) advanced 1.9 percent to $77.17 after JPMorgan Chase upgraded the cruise line operator's stock to "overweight" from "neutral."
TJX () advanced 3.1 percent to $69.34 after raising its annual guidance and reported that its earnings rose 4.5 percent on better-than-expected sales and improved margins during the quarter ended in April.
() jumped 18.1 percent to $28.65 even as the videogame maker reported that its fiscal fourth-quarter loss widened and issued a weak outlook that missed Wall Street’s expectations.
() was down 0.8 percent after the measurement company reported second-quarter earnings and revenue fell.
MBIA (NYSE:MBI) sank 8.3 percent to $9.00 after Warburg Pincus LLC the largest holder of MBIA’s stock said it will reduce its stake by more than half.
() rose 1.1 percent to $78.50 after the medical technology company said it expects earnings in its April quarter to come in at the top end of its previous guidance.
COMMODITIES:
Gold for June delivery on Comex dropped 1.7 percent to settle at $1206.70 an ounce.
June crude fell 3.7 percent to settle at $57.26 a barrel on the New York Mercantile Exchange.
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