SP 500, Dow Edge Lower as Home Sales Drop

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The SP 500 and Dow Jones indexes edged lower on Thursday as a resurgence of COVID19 cases globally sapped appetite for stocks, with data showing tepid U.S. home sales adding to the grim mood.

Investor sentiment dulled in the first half hour of trading, with eight of the 11 major SP 500 sectors in the red.

American Airlines Group Inc and Southwest Airlines Co reported a smallerthanexpected quarterly loss, signaling a revival in travel demand. The performance of their shares was mixed though, with Southwest rising 0.5 and American Airlines falling 0.4.

Even with betterthanexpected results from airlines this morning, at these elevated valuation levels, the market may have some agita digesting the cross currents from negative virus headlines, said Cliff Hodge, chief investment officer for Cornerstone Wealth.

As we get closer to the slower season, investors should start thinking about taking some risk off the table if they have not done so already.

Shares of ATT Inc jumped 5.2 after the companys wireless subscriber additions trounced analysts estimates.

Data showed existing home sales dropped 3.7 to a seasonally adjusted annual rate of 6.01 million units last month, the lowest level since August 2020, pulled down by an acute shortage of properties, which is boosting prices and making owning a house more expensive for some firsttime buyers.

Speedy vaccination rollouts in the United States has improved the pace of economic recovery, infused confidence among people and…

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