U.S. stocks advance, extending records, amid Iran nuclear deal

Homebuilders Decline

The S&P Supercomposite Homebuilding Index declined 0.4%. PulteGroup Inc. sank 0.7% to $18.10 while Lennar Corp. slipped 0.7% to $34.32.

“The real strong rebound in housing that we saw between 2011 and the first quarter of this year has tapered off now,” Charlie Smith, chief investment officer of Pittsburgh-based Fort Pitt Capital Group Inc., said in a phone interview. His firm oversees $1.5 billion. “The question people have is, ‘Can the uptrend in housing be sustained by what classically has been growth in income and therefore the ability to get loans?’”

ADT Corp. slumped 5.5% to $41.58. The largest provider of home security agreed to buy back 10.2 million shares from Corvex Management LP for $44.01 each. Keith Meister, founder of Corvex, will resign from ADT’s board of directors.

Qualcomm Inc. slid 0.9% to $72.28. The largest maker of chips for smartphones said China’s National Development and Reform Commission began an investigation related to an anti- monopoly law in the country. The company isn’t aware of any charge by the agency, it said. Qualcomm got 49% of its $24.9 billion in sales from China in its fiscal year ended in September.

Bull Market

Laszlo Birinyi, president of Birinyi Associates Inc., said the four-year bull market will keep going because optimism about the rally hasn’t overtaken concern about company earnings and valuations.

The lack of exuberance shows people aren’t fully invested and have money left to buy shares, according to Birinyi, one of the first money managers to advise clients to buy in 2009.

“We still haven’t heard the story about the barista in Starbucks who’s made a lot of money in the market,” he said in an interview on Bloomberg Television’s “Street Smart” with Trish Regan and Adam Johnson on Nov. 22. “We’re not there yet.”

Investors have added to options that provide protection in the event of a market plunge, based on the CBOE SKEW Index. The gauge uses the prices of short-term, out-of-the-money S&P 500 options to calculate the market’s perception of the probability for a tail-risk event.

The SKEW index rose to 137 on Nov. 18 as the Fed considered scaling back its bond-purchasing program and American lawmakers prepared for another round of budget talks.


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