The markets started the day higher on news of the China/US trade deal potentially coming by month's end, but sold off as construction spending dropped more than expected. This, along with investors believing that a trade deal is already baked into prices, pulled markets lower on the day. The Dow ultimately closed lower on the day by 204, the S&P 500 sold off 10, and the Nasdaq closed lower by 17, though all major indices were off their lows of the session.
Sector News
Oil was a focus today as prices headed higher on the potential for a trade deal and general supply cuts by OPEC nations. Oil has been chopping around near highs recently, finding new resistance at the $58 per barrel area. Since hitting lows back in December the price per barrel is now higher by about 33%.
Homebuilders continued their rally today and were one of the better performing areas of the markets. Ever since the homebuilders led the markets lower, they've been able to recover and erase all of those declines. Technical traders note the strong overhead resistance, suggesting this will be a stopping point for now in the sector.
Homebuilding stocks were near tops of S&P 500's list.
Stock News
Tesla (TSLA ) shares were in the news today for their announcement of the new Model Y, an SUV expected to cost about 10% more than the Model 3. The unveiling of the new SUV will come on March 14th and will reportedly offer a shorter range due to its size. The news today sort of overshadowed the companies payment of their $920 million convertible bond in cash on Friday. Shares sold off on concerns that the Model Y ramp up will hurt Model 3 sales.
Amazon (AMZN ) shares were higher today on an upgrade from Evercore. The company raised their price target to $1,965 from $1,800, citing gross profit growth as the key metric for their decision. Evercore says that due to additional businesses the company will see gross profit grow faster than revenue over the next three years.
AT&T's (T ) recently acquired CNN brand is about to get a makeover. The company is reportedly looking into shaking things up at the executive level as the channel is "not reaching its potential." Shares of AT&T were lower on the day.
Kraft Heinz (KHC ) shares were higher today as Morgan Stanley (MS ) upgraded the stock. The company says that the earnings and dividend cuts are now priced into the stock. Kraft shares have been hovering near lows since the massive earnings drop after the company announced slowing sales.
