Traders work on the floor of the New York Stock Exchange (NYSE), July 26, 2023.
Brendan McDermid | Reuters
Futures tied to the S&P 500 were little changed on Tuesday morning.
Futures linked to the broad market index added 0.14%, while Nasdaq-100 futures rose 0.26%. Futures tied to the Dow Jones Industrial Average were trading flat.
Homebuilders D.R. Horton climbed 3% and Lennar gained about 2% in extended trading after Warren Buffett’s Berkshire Hathaway revealed new positions in the stocks. NVR added roughly 1%. Discover Financial fell nearly 5% after announcing the resignation of its CEO.
A rebound in semiconductor and technology names lifted the S&P 500 and Nasdaq Composite 0.58% and 1.05%, respectively, during the regular trading session. The Dow added 26.23 points, or 0.07%.
Stocks bounced back on Monday after last week’s selloff put a dent in the summer rally. Six of the 11 major S&P sectors finished positive, led to the upside by information technology. Nvidia popped 7.1% as Morgan Stanley reiterated the chipmaker as a top pick, while the VanEck Semiconductor ETF added about 3%.
While more upside may be in store for the market into year end, some on Wall Street, including BNY Mellon Wealth Management’s Alicia Levine, are bracing for more consolidation as yields hover near highs.
“This is healthy,” she said on CNBC’s “Closing Bell” on Monday. “This is not the sign of a teetering market. This is a bit of consolidation, and it’s a place where you can really start to think about adding.”
“We don’t like to try to time the market, it never works,” she added, noting that August and September are seasonally weak.
A packed earnings week for the largest retailers kicks into gear Tuesday with results from Home Depot. Later in the week, traders will parse releases from Target and Walmart.
On the economic front, Wall Street is looking ahead to July retail sales data for more insight into the state of the consumer. Import and export price data for the month, along with August’s NAHB housing market index, are also on deck.