Stanley Black and Decker (SWK) is the stock of the session.  Shares are getting hammered after posting disappointing financial results:

Fourth Quarter Profits

•             Tools $382.8 million -3.6%

•             Industrial $68.4 million -5.4%

•             Security $30.2 million unchanged

•             Operating Margin 13.7% from 14.4%

And full year 2019 guidance was below Wall Street consensus:  $8.65 versus $8.78

“Baked into our guidance is a reality check on slowing markets,” “It’s not catastrophic. It’s nothing that we can’t handle.”

Jim Loree, Stanley Black and Decker CEO observed during the conference call that global economic woes are seeping into the U.S. economy and could end the economic expansion, suggesting this is a reality check.

The news from Black and Decker and Existing Home Sales disappointment underscores persistence weakness in the economy.

Existing Home Sales

• 4.99% annualized down 6.4% month to month against consensus of a decline of only 1.0%
• 2018 sales -3.1% weakest since 2015
• First time buyers only 32% (need 40% to be a healthy housing market)

The one-two punch has industrials the worst performing sector of the session; although all sectors are lower.  Energy is the second worst performer on news of slowing global growth.