33.81 0.00 (0.00%)
After hours: 5:18PM EDT
|Bid||33.68 x 1800|
|Ask||33.76 x 1100|
|Day's Range||32.85 - 34.04|
|52 Week Range||32.85 - 47.20|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.17|
|Expense Ratio (net)||0.35%|
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%.
Home builder stocks are down 20% this year, creating a buying opportunity for investors, according to some analysts.
The homebuilder sector continued its long stretch of losses Friday, in the wake of another disappointing data point on the housing market. The SPDR S&P Homebuilders ETF dropped 1.5% with 32 of 35 equity components trading lower, putting the ETF (XHB) on track for its lowest close since Dec. 2, 2016. The selloff comes data out early Friday showed that existing home sales fell 3.4% in September to a seasonally adjusted annual rate of 5.15 million, the fastest pace of monthly declines in about three years, and below the average estimate of economist surveyed by MarketWatch of a 5.27 million rate. The XHB is headed for the 23rd decline in the past 25 sessions, a stretch that included a 13-session losing streak that was the longest in the XHB's history by a wide margin. The XHB has tumbled 16% over the past 25 sessions. Over the same time, the S&P 500 has slipped 4.6%.
Positive earnings from the likes of Bank of New York Mellon, BB&T and Danaher were overshadowed by rising yields in the early trading session on Thursday as benchmark Treasury yields rose across the board, causing the Dow Jones Industrial Average to fall by over 150 points. In part, Treasury note yields were partly to blame for last week’s stock sell-off as benchmark notes went on a weeklong ascent in the week prior, pushing to new highs that caused investors to fret. "The bottom line is that the long end of the US yield curve has managed to break out for the first time in several years and that other developed market yields have also been moving higher," said Michael Shaoul, chairman and CEO of Marketfield Asset Management.
Shares of home improvement retailers and homebuilders equities tumbled Wednesday after another analyst downgraded the sector, weighing on the related exchange traded funds in the process. Credit Suisse’s ...
After Credit Suisse’s downgrade on October 17, Lowe’s Companies’ (LOW) stock price fell to a low of $101.39 before closing the day at $102.44, which represents a fall of 3.3% from its previous day’s closing price.
Housing starts fell more than expected, sliding by 5.3% to a seasonally adjusted annual rate of 1.201 million units last month, according to the latest data from the Commerce Department. The fall nailed homebuilder ETFs like the iShares US Home Construction ETF (ITB) , SPDR S&P Homebuilders ETF (XHB) and the Invesco Dynamic Building & Construction ETF (PKB) . The drop in housing starts was also paired with August's data being revised down to show starts rising to a rate of 1.268 million units versus the previously reported 1.282 million units.
Shares of Home Depot Inc. dropped 3.8% toward a five-month low and Lowe's Companies' stock slumped 3.3% toward a two-month low, in the wake is disappointing housing market data and after Credit Suisse downgraded the home improvement retailers, citing slowing earnings growth and less favorable valuation. Analyst Seth Sigman cut his rating on both companies to neutral from outperform, while lowering Home Depot's stock price target to $204 from $222 and Lowe's target to $111 from $115. "Our key concern is that home prices will continue to moderate, at least temporarily, as higher rates weigh on affordability, and inventory creeps up," Sigman wrote in a note to clients. He said research shows home prices are a key driver of big ticket projects, and therefore affect growth in average ticket and same-store sales. Separately, housing starts fell by a more-than-expected 5.3% in September to a seasonally adjusted annual rate of 1.201 million. The SPDR S&P Homebuilders ETF , of which Home Depot and Lowe's are components, slumped 2.2% with all 35 components losing ground. Over the past three months, shares of Home Depot have lost 7.3% and of Lowe's have gained 2.1%, while the homebuilders ETF has tumbled 15% and the Dow Jones Industrial Average has gained 1.8%.
In a bull market that has lasted as long as the current one, spotting laggards becomes increasingly easy. Homebuilding stocks and exchange-traded funds are among those laggards.
A rising rate landscape continues to rock the foundations of the real estate sector, particularly when it comes to homebuilders, which could benefit the Direxion Daily MSCI Real Est Bear 3X ETF (DRV) , but put persistent downward pressure on the Direxion Daily Homebuilders and Supplies Bull 3X Shares (NAIL) . With 30-year mortgage rates already surpassing the 5% mark, the cost to finance a home is getting more expensive, clamping down a housing market that has been lagging even as U.S. equities were in the midst of a historic bull run. Compounding the issue is the benchmark U.S. Treasury yield on the 10-year note reaching a new seven-year high.
As of October 8, RH (RH) was trading at $110.82, a fall of 26.7% since it announced its earnings for the second quarter of fiscal 2018 on September 4.
Shares of D.R. Horton Inc. fell 1.9% in light premarket trade Tuesday, after the home builder provided fourth-quarter sales data that was below expectations. The company said homes closed or 11% to 14,674 homes and home sales revenue grew 9% to $4.4 billion. The FactSet consensus for home sales was $4.6 billion and for home deliveries was 15,117. Net sales orders increased 11% to 11,509 homes, and the value of sales orders rose 10% to $3.4 billion, while the FactSet consensus for new orders was 11,430 and the value of new orders was $3.5 billion. The cancellation rate increased to 26% from 25%. The company is scheduled to report full fourth-quarter results on Nov. 13. The stock has lost 2.8% over the past three months, while the SPDR S&P Homebuilders ETF has lost 8.6% and the S&P 500 has gained 3.6%.
Housing stocks are getting wrecked. One technician says the demolition in the S&P homebuilding index presents an opportunity.
Homebuilder stocks just got crushed, and some market watchers say there's far more pain to come. The XHB XHB , the popular homebuilders-tracking ETF, just posted its longest losing streak ever, falling for 13 consecutive sessions amid a breakout in U.S. Treasury yields that injected new risk into the rate-sensitive group. The XHB has tumbled 9 percent in just one month, entering into a bear market.
The SPDR S&P Homebuilders ETF shed 1.3% in afternoon trade toward an 18-month, with just two of 35 equity components trading higher, as the sector tracker was on track to stretch its record-long losing streak to 13 sessions. The previous record losing streak was eight sessions, which occurred first during the eight-day stretch ending July 18, 2006, as the housing crisis was just getting started, and was matched during the eight-session stretch ending Jan. 11, 2016. The ETF was launched in February 2006. The latest selloff comes amid concerns that the recent run up in Treasury yields would lift mortgage rates, and therefore home-buying costs, to the point of sapping home-buying demand. The yield on the 10-year Treasury note has climbed 0.335 percentage points over the past month to a seven-year high of 3.237% on Friday. The homebuilders ETF has now shed 16% year to date, while the S&P 500 has gained 7.9%.
The home builder sector continued to suffer its longest-ever losing stretch, as it fell into bear-market territory Thursday amid growing concerns over the impact of rising interest rates. The SPDR S&P Homebuilders ETF dropped 1.6% in afternoon trade, with 30 of 35 components losing ground, as it headed toward its 12th-straight decline. That's by far the longest losing streak--the second-longest is eight sessions--since the ETF started trading in February 2006, and for the lowest close since Aug. 24, 2017. It has now lost 20.2% since its Jan. 22, 2018 record close $46.75. Many chart watchers define a bear market as a decline of at least 20% on a closing basis from a bull-market high. The ETF's weakness comes as the yield on the 10-year Treasury note, which helps determine mortgage rates, has run up 0.788 percentage points this year to a seven-year high of 3.197% on Thursday. Meanwhile, the Dow Jones Industrial Average slumped 341 points Thursday, but has gained 7.2% this year.
In a note published earlier this week, analysts at Bank of America Merrill Lynch took a look at the housing market and its troubles and said the housing market is no longer a tailwind for the economy.
DJIA ends almost 550 points higher as upbeat earnings push stocks higher. Meanwhile, homebuilder sentiment improved in October, but affordability issues remain.
CNBC's Julia Boorstin reports on the S&P Homebuilders ETF bracing for its longest losing streak since the ETF's inception in 2006.