|Bid||0.00 x 1400|
|Ask||0.00 x 800|
|Day's Range||33.58 - 34.27|
|52 Week Range||31.82 - 47.20|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.33|
|Expense Ratio (net)||0.35%|
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest market moves after the FHFA House Price Index for August came in as expected at 0.3% and MBA Mortgage Applications jumped up 4.9% on the week.
Homebuilder stocks are getting hammered. While some investors are avoiding homebuilders amid rising interest rates that traditionally serve as a headwind for the economically sensitive group of stocks, others say evidence is mounting for a bounce. The XHB began accelerating its losses this year once the U.S. 10-year Treasury yield broke above 2.8 percent, said Todd Gordon, technical analyst and founder of TradingAnalysis.com.
Lowe’s Companies (LOW) plans to report its third-quarter earnings before the market opens on November 20. As of November 15, the company was trading at a stock price of $93.68, which represents a fall of 6.1% since the announcement of its third-quarter earnings on August 22. In the second quarter, Lowe’s had posted adjusted EPS of $2.07 on revenue of $20.89 billion, outperforming analysts’ EPS expectation of $2.02 and revenue estimate of $20.78 billion.
Investing.com - KB Home plunged Thursday, deepening the rout in homebuilders, after slashing its full-year guidance in the wake of an ongoing slump in the housing market.
Homebuilders stocks and the related exchange traded funds recently rallied, albeit modestly, off 2018 lows, but some market observers believe the group remains vulnerable to additional downside. The SPDR S&P Homebuilders ETF (XHB) , iShares U.S. Home Construction ETF (ITB) and Invesco Dynamic Building & Construction ETF (PKB) are still sporting significant year-to-date losses. “The XHB homebuilders ETF and ITB home construction ETF are both tracking for their worst years since 2008, the middle of a housing crisis that demolished the group,” reports CNBC.
Can Williams-Sonoma Outperform Analysts’ Expectations in Q3? Williams-Sonoma (WSM) is scheduled to post it third-quarter earnings after the market closes on November 15. In the second quarter, Williams-Sonoma posted adjusted EPS of $0.77 on revenues of $1.27 billion, outperforming analysts’ expectations of $0.68 and $1.26 billion. Also, the company posted a comparable brand sales growth of 4.6%, beating analysts’ expectation of 4.1%.
The homebuilders are getting crushed this year. The XHB homebuilders ETF XHB and ITB home construction ETF ITB are both tracking for their worst years since 2008, the middle of a housing crisis that demolished the group. A technical retracement refers to a pullback within an uptrend that gives back some of the gains already logged.
Mortgage applications hit a near 4-year low lately as rising rate concerns are affecting the sector, putting homebuilder ETFs in focus.
While Wall Street has focused on trade, interest rates, and the midterm elections, a potentially bigger risk to the markets has gone almost unnoticed: Housing starts have slid, prices in some high-profile markets have weakened, and share prices of publicly traded homebuilders have plummeted. Home purchases have a multiplier effect on consumer spending, since they often generate further sales of furniture, appliances, electronics, and marble or granite kitchen counters. • Since January, when the total of new privately owned housing units started hit an 11-year high of 1,334,000 units (annualized), housing starts have fallen to 1.2 million annually in September, according to the U.S. Bureau of the Census.
D.R. Horton Inc. reported Thursday fiscal fourth-quarter earnings that matched expectations, but revenue that came up shy, as rising prices and higher interest rates have led to some moderation in demand. The stock was still inactive in premarket trade. Net income rose to $466.1 million, or $1.22 a share, from $313.2 million, or 82 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.22. Revenue increased to $5.51 billion from $4.16 billion, below the FactSet consensus of $4.55 billion. Homes closed rose 11% to 14,674, matching the FactSet consensus, as the value of homes closed increased 9% to $4.4 billion. Net sales orders grew 11% to 11,509 homes and homes in inventory as of Sept. 30 rose 13% to 29,700 homes. "Sales prices for both new and existing homes have increased across most of our markets over the past several years, which coupled with rising interest rates has impacted affordability and resulted in some moderation of demand for homes, particularly at higher price points," said Chairman Donald Horton. "However, we continue to see good demand and a limited supply of homes at affordable prices across our markets, and economic fundamentals and financing availability remain solid." The stock has tumbled 20% year to date, while the SPDR S&P Homebuilders ETF has shed 26% and the S&P 500 has gained 5.3%.
Voting for Democrats was spectacular! A few weeks ago, we told investors that you really wanted to see the Democrats take the House. That way, we would get gridlock and a check on the president, maybe even some help with tariffs. Well, initially this looks to be right. The Dow Jones Industrials (DIA) are up 2% along with the S&P 500 (SPX), while the Nasdaq (QQQ) is up 2.5%. So far, so good.
Homebuilders exchange traded funds are among this year's most downtrodden industry funds. The SPDR S&P Homebuilders ETF (XHB) is down more than 23% year-to-date, but some traders have recently scooping up shares of the equal-weight homebuilders fund. Some recent encouraging data points facilitated a rally in homebuilder ETFs.
Homebuilders stocks and sector-related ETFs led the charge on Tuesday as the homeownership rate in the U.S. gains momentum. Supporting the gains in the homebuilder sector, the Census Bureau revealed the homeownership rate was 64.4% in the third quarter, compared to 64.3% in the prior three months and 63.9% a year earlier, Bloomberg reports. The steady price gains in the housing sector over the past six years are starting to slow, potentially allowing more buyers to bid on houses without resorting to a pricey bidding war.
A sharp slowdown in the housing market has led to worries that a repeat of the subprime meltdown of 2007–08 might be brewing, but the Nobel Laureate economist who predicted that crisis believes that such fears are overblown today. While noting that home prices having been rising since 2012, Professor Robert Shiller of Yale University told CNBC: "A housing bubble is not much in evidence...It's not the same. The SPDR Homebuilders ETF ( XHB) plummeted by 81% between March 17, 2006 and March 9, 2009, based on adjusted closing prices from Yahoo Finance. This year, as of the Oct. 29 close, it is down by 32% from its 52-week high set in intraday trading on Jan. 24. Some recent signs of stress in the housing market are summarized in the table below.
The housing market is one of the few sectors in the U.S. that isn't riding on the country???s growth as rising rates and housing prices are resulting in lower sales, putting housing ETFs in focus.
The home builder sector was broadly higher in afternoon trade Thursday, as upbeat pending home sales data helped provide some relief for investors suffering from a long bout of selling. The SPDR S&P Homebuilders ETF climbed 3.3%, with 33 of 35 components contributing to gains. The ETF had closed Wednesday at the lowest level since Nov. 9, 2016. That followed a 26-session stretch in which the ETF declined 23 times, including a longest-ever losing streak of 13 sessions. The ETF's biggest gainer Thursday was Whirlpool Corp.'s stock , which shot up 7.7% after the home appliances maker reported late Wednesday third-quarter earnings that were well above expectations. Among the ETF's most active stocks, PulteGroup Inc. rallied 5.7%, Lennar Corp. rose 4.8% and D.R. Horton Inc. gained 4.1%. The ETF was still down 14% over the past three months, while the S&P 500 has lost 4.7%.
The yields on benchmark Treasury notes headed lower Wednesday as the Commerce Department reported weaker-than-expected new home sales, which dropped by 5.5% during September--its lowest level since 2016. "Anyone watching home builder stocks or watching the data all year should not be surprised but its's clear this important area of the US economy, highly sensitive to price and rates, has obviously slowed sharply," said Peter Boockvar, chief investment officer for the Bleakley Advisory Group. The new home sales data comes as housing starts also fell more than expected, sliding by 5.3% to a seasonally adjusted annual rate of 1.201 million units last month, according to the Commerce Department.
While some big blue chip stocks revealed lackluster results for the third quarter, homebuilders and home construction-related ETFs climbed on strong earnings and forward guidance. On Tuesday, the SPDR ...
After posting better-than-expected second-quarter earnings results on August 14, Home Depot (HD) raised its revenue, SSSG (same-store sales growth), and EPS guidances for 2018. Along with these factors, rising home prices and the falling unemployment rate led the company’s stock price to a new 52-week high of $215.43 on September 12.
The Nasdaq (QQQ) is down 9% this month, but still up 6% YTD. China (FXI) is down 30% this year. Germany (DAX) is down 13% this year. Only Brazil stands out nicely, up 10.5% so far this year. The DJIA (DIA) is hanging on to a 1% gain while the S&P 500 (SPY) is up just over 1%. When will the madness end? And should you be buying into to these daunting charts?
CNBC published this story earlier about what has changed since Donald Trump has been president. Take a look at the article here: https://www.cnbc.com/2018/10/20/chart-shows-how-everything-has-changed-since-trump-became-president.html?&qsearchterm=trump. What has the stock market done since Trump took office (not elected – took office – you can’t do anything as the President-elect)? Why is this important? Because it shows how and if the policies enacted have and will be effective in boosting the economy and thus the market. Why do I care about the market primarily? Because that is what I do – that is what I trade. I am very glad for the millions more employed and higher wages, but what has the market done, and where is it telling me the economy is going? Hmmm. Before I get hate mail – I know that the market and interest rate positions were very different. Here are some points for and against each. First – obviously, President Obama’s presidency started in a rut. However, it is important to note that the from the time that President Obama got elected to the bottom of the market in March (of roughly 666 on the S&P 500), the market dropped a solid 20%.
The housing market has been stalling out this year and the stock market is starting to sense that all is not well with a major driver of the U.S. economy.