The Closing Look

Stocks rallied on Tuesday as investors digested the latest round of mixed economic and earnings data. Shares of Best Buy Co. Inc. ($BBY) gapped up after the retail giant reported earnings. The company said online sales helped last quarter and they are going to do more to win market share back from Amazon.com (AMZN). On the economic front, a few European PMIs were released and they did not show a major post brexit slowdown, as so many people had feared. In the U.S., new home sales in July unexpectedly jumped to the highest level in almost nine years. New home sales came in at 654k, beating estimates for 580k. A slew of housing stocks rallied on the news. Separately, the Markit Manufacturing PMI for August, came in at 52.1, missing estimates for 53.2.

Gary’s Thoughts: BBY sales growth…a big fat 0%. Otherwise, market better than Dow up 17 but not as good as Dow up 100. Gold/silver stand out as a continued topping process (for now). A few too many names now below 50 day.