Core Viewpoint - The U.S. Federal Reserve's decision to restart interest rate cuts is expected to benefit housing shares and other interest-rate sensitive sectors, as markets anticipate more monetary easing [1][2]. Group 1: Impact of Federal Reserve's Actions - The Fed lowered its benchmark rate for the first time since December, reducing it by a quarter of a percentage point to the 4-4.25% range, which is aimed at supporting a shaky labor market [1][2]. - The move is anticipated to help small-cap and consumer discretionary shares, with homebuilder stocks likely to benefit from lower mortgage rates and increased economic activity [2][5]. Group 2: Market Performance - The S&P 500 reached record high levels, up over 13% year-to-date, while the small-cap Russell 2000 also posted a record-high close for the first time in nearly four years [2]. - The PHLX Housing index has increased by 15% this quarter, outperforming the S&P 500's over 7% gain, although it still lags behind on a year-to-date basis [3]. Group 3: Notable Stock Performances - Significant gainers in the housing sector this quarter include DR Horton, which is up over 30%, and both KB Home and Toll Brothers, which are up over 20% [4]. - Home improvement retailers Lowe's and Home Depot have also seen increases of about 20% and 13% respectively this quarter [4]. Group 4: Mortgage Rates and Housing Market Conditions - The contract rate on a 30-year fixed-rate mortgage fell to 6.39%, the lowest since early October 2024, with projections suggesting it could approach 6% by year-end [4]. - Despite the positive outlook from lower mortgage rates, the housing market is currently struggling, with single-family homebuilding hitting a near 2-1/2-year low in August [5].

Core Insights - Lennar Corporation reported earnings per share (EPS) of $2.29, exceeding estimates of $2.09, but revenue of $8.81 billion fell short of the anticipated $10.28 billion [1][6] - The company's revenue represents a 6.4% decline year-over-year, attributed to soft market conditions in the homebuilding sector [2][6] - Net earnings for the quarter were $591 million, a significant decrease from $1.2 billion in the same quarter last year, indicating a challenging market environment [3][6] Financial Performance - Adjusted EPS was $2.00, below the consensus estimate of $2.10, reflecting difficulties in meeting market expectations [2] - New orders increased by 12%, totaling 23,004 homes, while the backlog stood at 16,953 homes valued at $6.6 billion [4] - Homebuilding operating earnings were reported at $760 million, with a gross margin on home sales of 17.5% and a net margin of 9.2% [4] Financial Metrics - The price-to-earnings (P/E) ratio is approximately 10.13, indicating the price investors are willing to pay for each dollar of earnings [5][6] - The price-to-sales ratio is about 0.94, suggesting the stock is valued at less than one times its sales [5] - The debt-to-equity ratio is relatively low at 0.19, indicating conservative use of debt, and the current ratio is strong at 9.15, reflecting a robust ability to cover short-term liabilities [5][6]

NEW YORK (AP) — Wall Street tacked on some more gains Friday as it glided to the finish of its latest record-setting week. The S&P 500 rose 0.5% to close out its sixth winning week in the last seven. The Dow Jones Industrial Average added 172 points, or 0.4%, and the Nasdaq composite climbed 0.7%. All three hit all-time highs for a second straight day. They’ve been rallying on expectations that the Federal Reserve will continue to cut interest rates in order to give the economy a boost after the centra ...

Core Viewpoint - Lennar Corporation (NYSE:LEN) is recognized as a strong operator in the homebuilding sector, but there is hesitancy in recommending the stock due to the uncertainty surrounding long-term interest rates [1] Company Overview - Lennar Corporation is a U.S.-based homebuilder that focuses on constructing and selling single-family homes, developing residential land, and managing multifamily rental properties [1] Market Conditions - The company has performed well amid recent bond market turmoil, but the necessity for long-term interest rates to remain low is crucial for justifying investments in homebuilders [1] - Mortgage rates are decreasing significantly, which could positively impact homebuilders like Lennar [1] Investment Sentiment - Jim Cramer suggests that as mortgage rates decline, capital may shift from other sectors, such as technology, to homebuilders like Lennar and Toll Brothers [1] - Despite the potential of Lennar as an investment, there are AI stocks that may offer greater upside potential with less downside risk [1]

Market Overview - U.S. stocks closed higher on Thursday, with the Dow Jones Industrial Average up 0.3% at 46,142.42, the S&P 500 advancing 0.5% to 6,631.96, and the Nasdaq climbing nearly 1% to 22,470.73 [1] Intel Corporation (INTC) - Intel's stock surged 22.77% to close at $30.57, reaching an intraday high of $32.38 and a low of $30.16, with a 52-week range between $17.67 and $32.38 [1] - A significant partnership with Nvidia was announced to co-develop custom data center and PC products, enhancing workloads across various markets [1] FedEx Corporation (FDX) - FedEx shares increased by 0.32%, closing at $226.50, with an intraday high of $229.10 and a low of $224.78; the stock's 52-week high and low are $308.53 and $194.30, respectively [2] - The company reported first-quarter fiscal 2026 earnings, with revenue of $22.2 billion, exceeding estimates of $21.67 billion [2] Lennar Corporation (LEN) - Lennar's stock dipped slightly by 0.08% to $132.87, with a high of $134.07 and a low of $131.34; the 52-week range is between $98.42 and $193.80 [3] - The company's third-quarter results fell short of expectations, with earnings per share reported at $2, missing the consensus estimate of $2.10 [3] Brera Holdings PLC (BREA) - Brera Holdings saw a remarkable increase of 225.49%, closing at $24.90, with a high of $52.95 and a low of $7.84; the stock's 52-week high and low are $52.95 and $5.00 [4] - Cathie Wood-led Ark Invest acquired 6.5 million shares of Brera Holdings, worth about $161.9 million, as the company pivots into a Solana-based digital asset and crypto infrastructure firm following a $300 million funding round [4] Rivian Automotive, Inc. (RIVN) - Rivian's stock rose by 4.04% to $14.68, with an intraday high of $14.94 and a low of $14.07; the 52-week range is $9.50 to $17.15 [5] - New images of Rivian's upcoming electric bike developed by its spinoff Also Inc. surfaced online, boosting investor interest [5]

Core Insights - Lennar reported $8.81 billion in revenue for the quarter ended August 2025, a year-over-year decline of 6.4% and an EPS of $2.00 compared to $3.90 a year ago, missing the Zacks Consensus Estimate of $9.04 billion by 2.49% [1] - Key financial metrics indicate mixed performance, with some areas showing growth while others declined, impacting overall financial health [2] Financial Performance - Revenue from Homebuilding was $8.25 billion, below the estimated $8.63 billion, reflecting an 8.8% year-over-year decline [4] - Revenue from Financial Services was $314.2 million, exceeding the estimate of $285.03 million, marking a 15% increase year-over-year [4] - Multifamily revenue reached $228.47 million, significantly surpassing the estimate of $120.27 million, representing a 144.5% increase year-over-year [4] Deliveries and Orders - Total deliveries of homes were 21,584, slightly below the estimate of 22,546 [4] - New orders for homes totaled 23,004, exceeding the estimate of 22,504 [4] - Backlog of homes stood at 16,953, higher than the average estimate of 15,522 [4] Market Performance - Shares of Lennar returned +2% over the past month, compared to the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Lennar Corp. reported adjusted earnings of $2 per share, missing the consensus estimate of $2.10, and quarterly revenue of $8.81 billion, which also fell short of the Street estimate of $8.99 billion [1][3] Financial Performance - New orders increased by 12% to 23,004 homes, while the backlog stood at 16,953 homes valued at $6.6 billion [5] - Deliveries remained consistent with the prior year at 21,584 homes [3][5] - Total revenues reached $8.81 billion, with homebuilding operating earnings of $760 million [5] - Gross margin on home sales decreased to 17.5%, and SG&A expenses accounted for 8.2% of revenues from home sales [3][5] - Net margin on home sales was reported at 9.2% [5] - Financial Services operating earnings were $178 million, while the multifamily segment reported an operating loss of $16 million [5] Market Context - The results reflect ongoing pressures in the housing market, necessitating additional incentives that led to a reduced average sales price of $383,000 [3] - The stock price of Lennar was down 3.36% to $128.40 in extended trading following the earnings report [4]

Key TakeawaysLennar Corporation (LEN) reported mixed third-quarter 2025 earnings, with EPS beating estimates at $2.29 but revenue falling short of expectations at $8.81 billion, alongside a significant year-over-year EPS drop and conservative Q4 guidance.FedEx (FDX) is set to complete its Amazon (AMZN) onboarding by the third quarter, focusing on larger, heavier packages, marking a significant rekindling of their partnership and potentially bolstering holiday delivery capacity.Japan's Sanae Takaichi plans t ...

Core Viewpoint - Lennar reported a significant decline in third-quarter profit and forecasted lower home deliveries for the fourth quarter, indicating ongoing challenges in the housing market due to inflation and elevated interest rates [1][3]. Financial Performance - Lennar's third-quarter earnings were $2.29 per share, down from $4.26 per share a year earlier [4]. - Revenue for the quarter ended August 31 fell by 8.7% to $8.25 billion, which was below analysts' estimates of $9 billion [4]. Market Outlook - The company expects fourth-quarter home deliveries to be between 22,000 and 23,000 units, which is below analysts' expectations of over 25,000 units [3]. - Analysts at BofA Securities noted that the recent Fed rate cut is unlikely to have a significant short-term impact on the housing market, as the market had already priced in the rate changes [2]. Operational Challenges - Lennar's profit margins are under pressure due to sales incentives like mortgage rate buydowns and cost adjustments amid weakening home demand [3]. - The company does not anticipate being affected by tariffs and aims to focus on improving margins [3].

Builder Lennar’s forecast for quarterly home orders missed analysts’ estimates as affordability concerns and the wavering job market keep a lid on buyer demand https://t.co/ikDDxnI07B ...