The June CPI was much better than expected and has the broad market set up to rally over the next six to 12 months. The rally is driven by the expectation for FOMC interest rate cuts, which will reduce the cost of money and reinvigorate the bull market, assuming no recession unfolds. While most stocks should see the benefit of lower rates, specific sectors, industries, and stocks are in better positions. Among them are small and mid-caps, viewed as more agile and able to make quicker shifts, consumer-orient ...

The sagging homebuilder stocks thrived last week following the release of several key measures of inflation data that came in soft. Since the beginning of 2022, the homebuilding industry has been reeling under the impact of rising mortgage rates and escalating building costs.In early May, mortgage rates soared to the highest level of the year, and despite decreasing slightly since then, they remain near 7%. This surge in borrowing costs has coincided with a steady climb in home prices. These factors have se ...

The housing market has faced headwinds in recent times, primarily due to the impact of rising interest rates. This surge in borrowing costs has slowed down homebuying activity, leading to a decline in homebuilder stock prices. However, recent economic indicators suggest a potential shift in the market that could benefit the homebuilding sector. The decline in inflation, as reflected in the Consumer Price Index (CPI), has fueled optimism about the Federal Reserve potentially lowering interest rates. This pot ...

Key TakeawaysHomebuilder stocks jumped after the milder-than-expected June inflation print fueled investors' hopes that the Federal Reserve will cut its influential fed funds rates this year.With a lower fed funds rate, all kinds of borrowing would be less expensive including mortgages. High mortgage rates have hindered potential homebuyers from entering the market by pushing up the monthly payment on already pricey houses. Homebuilder stocks jumped Thursday on hopes that mortgage rates will start to signi ...

Wall Street expects a year-over-year decline in earnings on lower revenues when D.R. Horton (DHI) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 18, 2024, might help the stock move higher if these key numbers are better than expectatio ...

Sales of new U.S. single-family homes slipped in May, marking the lowest level in six months, according to the U.S. Census Bureau’s latest report.New home sales — a leading housing market indicator based on signed contracts, not closings — decreased 11.3% to a seasonally adjusted annual rate of 619,000 units in May from April, according to the Commerce Department's report released on Jun 26, 2024. This was the steepest monthly decline since September 2022 and marks the lowest level since November. May’s sal ...

The housing market in 2024 continues to be complex and volatile for homebuyers and investors. Interest rate volatility, affordability concerns, and persistent inflation present ongoing challenges for the industry. However, the demand for housing remains resilient, driven by favorable demographics and a chronic supply shortage. To gain a deeper understanding of the housing market, investors often turn to earnings calls of leading homebuilders to gain insights into their performance, strategies, and outlook. ...

In the latest trading session, D.R. Horton (DHI) closed at $143.46, marking a -0.19% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.23%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%.Shares of the homebuilder have depreciated by 8.79% over the course of the past month, underperforming the Construction sector's loss of 3.41% and the S&P 500's gain of 3.96%.The investment community will be paying close attention to the earnings perf ...

May's cooler-than-expected consumer price index (CPI) on a year-over-year basis is pushing bond yields lower, and the prospects of an interest rate cut in September are increasing. Homebuilding stocks -- hyper sensitive to rates and the U.S. economy -- are on the rise today. Here's what it means for three sector stalwarts: D. R. Horton Inc (NYSE:DHI), PulteGroup Inc (NYSE:PHM), and Lennar Corp (NYSE:LEN). KBH Home (KBH) was covered in depth earlier this week, with a correctly identified bullish signal. DHI ...

UKRAINE - 2021/07/18: In this photo illustration, a D.R. Horton, Inc. logo seen displayed on a ... [+] smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesOur theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has been a mixed performer this year, rising by just about 4% year-to-date. This compares to the S&P 500, which h ...