Nasdaq Closes Above 4K
Stocks in the US remained buoyed on Tuesday but volume dissipated and implied volatility shrank. As the Thanks Given holiday looms, which means a closed Thursday session and partial Friday session, traders are likely to cut positions quickly generating sharp stocks movements. Economic data on Tuesday showed that building permits were stronger than expected, while Housing Starts were postponed until December. The Nasdaq climbed above 4K for the first time in 13 years.
Building Permits were released by the Commerce Department on Wednesday, increasing 6.2% month over month compared to a 5.2% rise in September. Permits are generally considered a pre-cursor to Housing Starts which say their release delayed due to the government shutdown. The number of permits issued last month rose to an annual rate of 1.03 million from an upwardly revised 974,000 in September, according to the Commerce Department. Permits for buildings of five units or more increased rapidly by 17%. Applications for single-family homes rose less than 1% compared to the prior month.
Also in housing news the Case Shiller housing price index increased. Single-family homes in the 20 major metro areas tracked by the indices collectively rose 13.3% year-over-year, a 0.7% in August.
In corporate news, The Men’s Wearhouse (NYSE:MW) turned the tables on rival retailer Jos A. Bank Clothiers (NASDAQ:JOSB) , offering to buy the company for $55 a share; just weeks after JOSB dropped its $48 bid for MW. Men’s Wearhouse’s all-cash offer implies an enterprise value of approximately $1.2 billion.
Tiffany (NYSE:TIF) and company saw its stock price rally after the jeweler announced better than expected earnings. According to the company, global sales rose 7 percent to $911.5 million in the third quarter ended Oct. 31, above the $889.5 million that analysts were expecting. Comparable sales, which include those at stores open at least a year and from e-commerce, rose 7 percent.
The stock soared 8.68% breaking out above resistance near the August and November highs at 83. Momentum accelerated with the AMCD generating a buy signal.
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