The Standard & Poor’s 500 Index was up for the third day in a row, more than 0.83% higher, posting gains of more than 10 to take it over 1,303.
Steel stocks were at the helm, with both U.S. Steel (NYSE: X) and AK Steel (NYSE: AKS) leading the way.
Up more than $2.43 in the morning session, U.S. Steel is over $45.74, a gain of more than 5.6%. At a relative strength index of over 60, U.S. Steel is moving toward the benchmark of 70, for when a stock is considered overbought. U.S. Steel is up 2.8% for the week.
AK Steel was up more than 80 cents, a better than 5.6% gain, taking it over $15.50. AK Steel is trading above its 20-, 50- and 200-day moving averages. It is almost 40% above its low for the year.
Electronic Arts (NASDAQ: ERTS) gained almost a dollar from a favorable research report in early trading, taking it over $23.50, a more than 4.2% gain. Electronic Arts is trading above its 20-, 50- and 200-day moving averages. Its relative strength index is over 60.
Providing the ballast to the gainers were homebuilders and techs.
Data that the U.S. housing market is a long, long way from recovery — some analysts say the U.S. residential market won’t be back for another five years — had D.R. Horton (NYSE: DHI) down almost 1.4% to about $11.60, a loss of around 17 cents. Sales for the past five years are down by more than 20% for D.R. Horton, and earnings per share are down more than 30% during the same period. D.R. Horton is trading above its 20- and 200-day moving averages
Another homebuilder, PulteGroup (NYSE: PHM), was down about 20 cents to around $7.70 per share, more than a 2.4% drop. PulteGroup’s earnings per share, quarter by quarter, are down more than 20%. Both earnings and sales are down more than 20% for the past five years. PulteGroup has a debt-to-equity ratio of more than 1.6.
JDS Uniphase (NASDAQ: JDSU), an optical communications company, was down more than 40 cents, about 2.50%, to around $16.40. JDS Uniphase is trading above its 20-, 50- and 200-day moving averages. It is a volatile stock, with a beta of 2.34.
Jonathan Yates does not own stock in any of the companies mentioned in the article.
