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Housing Starts, FOMC Minutes And A Bad Month For Wal Mart

Published 02/21/2013, 12:20 AM
Updated 07/09/2023, 06:31 AM
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Wednesday morning, the S&P 500 Index e-mini futures (ES-H3) were trading higher by 0.25 points to $1528.25 per contract. It seems that the bad news is still good news and good news is great news. In other words, the stock market indexes remain euphoric and continue to hold up very well regardless of the news. Earlier today, Housing starts declined by 8.5 percent to 890,000. Analysts were expecting a small decline to 920,000. Last month, the new housing start number was 973,000. Last week, a Wal-Mart executive said that this was the worst February that he has seen in seven years and today the housing number declines by 8.5 percent. Will these markets ever decline or pullback again? How much worst can the news be? This is exactly why we must use the charts and forget about the news.

Earlier on Wednesday, Toll Brothers Inc (TOL) reported earnings that missed analyst's expectations. This tells us that some leading equities that could be volatile today include the housing recovery. Leading stocks such as The Home Depot Inc (HD), The Sherwin-Williams Company (SHW), CEMEX (CX), and iShares Dow Jones US Home Construction (ITB) could all face some early morning pressure.

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