Homebuilders and Materials Contributing to Relative Weakness
28-Jan-13 11:00 ET
[BRIEFING.COM] The key indices have lifted off their lows following a recent stumble. The S&P 500 is the worst performing index, down 0.2%. Meanwhile, the Nasdaq is adding 0.1% as it outperforms. The relative strength of the tech-heavy index comes as Apple (AAPL 448.80, +8.92) trades higher by 2.1%.
The S&P 500 extended its early weakness after the pending home sales report indicated a 4.3% decline in December sales. This disappointing reading contributed to weakness among homebuilders. DR Horton (DHI 21.39, -0.37) and Lennar (LEN 42.12, -0.95) are down 1.7% and 2.2% respectively. Meanwhile, the SPDR Homebuilders ETF (XHB 28.63, -0.48) is shedding 1.7%.
While builders are exerting pressure on the discretionary sector, stocks in the materials space are exhibiting the most notable weakness. This comes after Goldman Sachs downgraded the U.S. steel sector to ‘Cautious' from ‘Neutral.' Cliffs Natural Resources (CLF 35.00, -0.71) is shedding 2.0% and the Market Vectors Steel ETF (SLX 48.33, -0.63) is down 1.3%.