47.55 +0.03 (0.06%)
After hours: 4:03PM EDT
|Bid||47.79 x 1300|
|Ask||47.79 x 1200|
|Day's Range||47.09 - 48.44|
|52 Week Range||37.29 - 55.77|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||8.68|
|Earnings Date||Jun 24, 2019 - Jun 28, 2019|
|Forward Dividend & Yield||0.16 (0.33%)|
|1y Target Est||59.00|
Profits reports are beginning to paint a troubling picture for much of corporate America, especially for multinational companies with exposure to China.
KB Home earnings are due Wednesday night after homebuilders sold off Tuesday on Lennar earnings guidance. KB Home stock, Lennar stock edged lower Wednesday.
A growing number of large U.S. companies are expressing concerns over falling profit margins and that could spell trouble for stock-market valuations.
Shares of Lennar Corp. slide on weak third quarter outlook Tuesday after first rallying on big earnings and revenue beats..
Lennar stock slid more than 6% Tuesday afternoon, showing no signs of the company’s upbeat quarterly earnings report released earlier in the day.
Stock market update: The Nasdaq bore the brunt of the selling Tuesday, weighed down by another sell-off in software stocks.
Just a few days after one group of analysts cut their view of builder stocks, Raymond James’ Buck Horne turned bearish on housing, the economy, and a group of stocks that are up astronomically this year.
While Lennar stock is still higher on the day, the action is disappointing for investors. Earnings of $1.30 per share blew by consensus estimates of $1.15 per share and grew almost 40% from 94 cents per share in the same quarter a year ago. Gross margins on home sales came in at 20.1%, a near-20% improvement from the 16.8% gross margins achieved in the same quarter a year ago.
U.S. consumer confidence tumbled to a 21-month low in June as households grew a bit more pessimistic about business and labor market conditions amid concerns about a recent escalation in trade tensions between the United States and China. The economy's prospects were further dimmed by other data on Tuesday showing sales of new single-family homes unexpectedly fell for a second straight month in May. Growing risks to the economy, especially related to the trade war between Washington and Beijing, and low inflation prompted the Federal Reserve last week to signal interest rate cuts beginning as early as July. "The headwinds from the ongoing trade war the economy faces are definitely growing stronger, and it will be a miracle if Fed officials can pull a rabbit out of their hats and keep the economy moving forward," said Chris Rupkey, chief economist at MUFG in New York.
Lennar (LEN) reports better-than-expected fiscal second-quarter 2019 results on the back of recovering housing market fundamentals.
Wall Street's main indexes slipped on Tuesday, as bank stocks fell ahead of a handful of speeches by Federal Reserve officials, while escalating tensions in the Middle East and trade jitters added to the dour mood. At least five Fed policy makers are speaking later in the day, including Chair Jerome Powell, and markets assume they will stick with the recent message that rates could be about to be cut for the first time since the financial crisis. Rate-sensitive bank stocks were down 1%, as U.S. benchmark yields fell below the closely watched 2% level.
The stock market was modestly lower early Tuesday ahead of Fed Chair Powell's comments. Homebuilder Lennar is nearing a breakout.
Investors are also waiting on remarks later today from Fed Chair Jerome Powell. Investors have increasingly been expecting U.S. monetary policy makers to reduce interest rates this year. While lower interest rates make it more affordable for corporations to borrow money to expand operations, a Fed rate cut may come if the central bank takes a dimmer view of the economy overall.
McDonald's hoisted the Dow Jones industrials, Lennar zeroed in on a buy point, as stocks traded largely unchanged early Tuesday.
The homebuilder's second-quarter earnings handily exceed analysts' forecasts amid a revival in demand for new homes.
Wall Street's main indexes were set to open slightly lower on Tuesday, as investors worried about the fallout of new sanctions on Iran and signs that talks with China may generate little progress on trade. A senior U.S. official said President Donald Trump is "comfortable with any outcome" from the talks with his Chinese counterpart, dampening any hopes that the United States and China would be able to strike a trade deal at the G20 summit later this week. "It is unlikely that any resolution of the trade situation will take place until after the next Fed meeting late next month," said Robert Johnson, chief executive officer at Economic Index Associates in New York.