We said this morning the bulls needed to get off to a good start or at least hold current levels as the action today has once again been choppy. The Dow and S&P 500 have had a little success this morning but Tech has been weak which has weighed on the Nasdaq. The small-caps have traded on both sides of the ledger.
Economic news is light today but there will be a bevy of headlines on employment the rest of the week. Fourth-quarter earnings are winding down but there are still be a few noteworthy names reporting to finish out the month.
Toll Brothers (TOLL, $32.58, up $0.15) got a nice pop at the open but shares are fading despite the company easily beating Wall Street’s estimates. Toll reported earnings of $411 million, or $2.35 a share, on revenue of $633 million. The suit-and-ties were looking for $0.23 a share on sales of $565 million. The huge beat was due to a $350 million income tax benefit. Excluding the tax break, earnings were 35 cents a share and a solid 12 cents a share beat.
Toll Brothers is the top builder in the high-end luxury home business and the quarter was outstanding to say the least. We like the stock but it’s a little pricey and we would wait for a pullback if you are thinking of jumping back into the Housing sector.
Elsewhere, Facebook (FB, $27.26, up $0.22) traded up to $27.47 earlier in the session after announcing a Gift program that could be a huge hit. Shares briefly dipped below $20 in mid-November and continue to show incredible momentum after hitting a high of $28.88 yesterday. There is a chance shares trade to $32 over the near-term.
As we head into the second half of trading, the Dow is up 4 points to 12,970 while the S&P 500 is lower by 3 points to 1,406. The Nasdaq is down 15 ticks to 2,897 but is holding 2,975. The Russell 2000 is off by 2 points to 818 while the S&P 500 Volatility Index is up slightly to 16.92 but has stayed below 17.50 so far this week.
We mentioned Sunday night in our Weekly Wrap and Monday morning in our Daily that the current market conditions are very technically driven right now so make sure you check the charts in the Members Area to get a clear picture of what we are seeing.
We have also updated our current trades and we have a NEW TRADE we are releasing so let’s get on it. Subscribers, check the MA for the updates and be sure to use limit orders to get the best fills.