S&P 500 Index (SPX) Fell 16 Points Amid Less Than Expected Housing Data Results

In what could be called as the worst fall for S&P 500 INDEX (INDEXCBOE:SPX) since August 5, the index lost 16.11 points after poor housing data results. At the same time, NASDAQ Composite (INDEXNASDAQ:.IXIC) fell 52.10 points to mark its worst day since July 31.

The latest housing data raised doubts about the overall growth rate of the economy, as the existing home sales were down 1.8% against the expected increase of 1% in August. In addition to it, the announcement from Chinese finance minister to avoid any increase in stimulus measures because of some weak data in its own housing industry and said that the country will not change its economic policy because of any single indicator.

The results were quite visible on major housing indices including PHLX Housing Sector (INDEXNASDAQ:HGX), which fell nearly 2% including some primary housing industry stocks losing their value. The major stocks losing their price include D.R. Horton, Inc. (NYSE:DHI), Beazer Homes USA, Inc. (NYSE:BZH), and Toll Brothers Inc (NYSE:TOL).

According to the Chief allocation officer at Wilmington Trust Investment Advisors in Atlanta, Rax Macey, the falling housing number is an indication of lower recovery of the economy. He said,

“Housing is just too important to the economy, and to have this kind of weakness puts a pretty dark cloud over the market.”

On top of it, the poor housing data not only affected the housing industry but its results were visible in all the 10 major sectors of S&P 500 INDEX (INDEXCBOE:SPX). As many as 80% stocks on NYSE closed lower and 77% stocks trading on NASDAQ lost their price value. When it comes to the weakest sector of the day, Consumer discretionary .SPLRCD was on top losing 1.5% in the day’s trading. S&P 500 INDEX (INDEXCBOE:SPX) lost 0.80% on September 22, 2014.

This article has been written by Prakash Pandey and edited by Serkan Unal.

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