“Let’s start with Lennar. It turned in a technically mixed but mostly bad set of numbers on Tuesday night. The good news, deliveries came in better than expected, up 4% year-over-year. Total revenues also surprised the upside, although they still declined 6% from the previous year. That’s not good. Within the core home building segment, revenues and average sales price both exceeded expectations even as they represented declines of 7 and 10%, respectively. The bad news, the most important thing, profitabili ...

These ten large-cap stocks were the worst performers last week. Are they a part of your portfolio?Nike, Inc. (NYSE:NKE) decreased 12.81% this week after the company reported a 17% decline in Greater China sales in the second quarter. Also, multiple analysts lowered their price forecast on the stock.Arm Holdings plc (NASDAQ:ARM) fell 9.77% this week after Goldman Sachs downgraded the stock from Neutral to Sell and lowered the price forecast from $160 to $120. Also, B of A Securities lowered the price forecas ...

Inflation and Economic Indicators - The CPI figures for November showed a rise of 2.7%, lower than the expected 3.1% increase, indicating a positive surprise in inflation data [1] - Shelter prices increased by 0.2% from September to November, slower than the 0.3% average increase in 2025 [2] Darden Restaurants, Inc. (NYSE:DRI) - Darden reported $3.1 billion in revenue and $2.08 in adjusted earnings per share, beating revenue estimates but missing earnings estimates [8] - BTIG maintained a Buy rating with a price target of $225, while Stephens cut its price target from $215 to $205, citing weaker trends at Olive Garden [8] - The CFO noted that high beef prices were impacting margins, but stable sales at LongHorn Steakhouse were highlighted [8] Micron Technology, Inc. (NASDAQ:MU) - Micron reported $13.64 billion in revenue and $4.78 in adjusted earnings per share, exceeding analyst estimates [9] - The results prompted Rosenblatt to raise the price target from $300 to $500, maintaining a Buy rating, driven by memory price strength and lower costs [9] - Cramer emphasized the strong demand for memory chips, particularly in AI, with Micron only able to meet 50% to 66% of customer demand [9][10]

Core Insights - KB Home reported fourth-quarter revenue of $1.69 billion, exceeding analyst estimates of $1.66 billion, with adjusted earnings of $1.92 per share, surpassing expectations of $1.80 per share [2] Financial Performance - The company delivered 3,619 homes in the quarter, representing a 9% decrease year-over-year - The average selling price of homes declined by 7% year-over-year to $465,600 - Net orders fell by 10% year-over-year to 2,414 - Ending backlog value was $1.40 billion, while inventories increased by 3% to $5.67 billion [3] Shareholder Actions - KB Home repurchased approximately $100 million of its common stock during the quarter - The company ended the period with total cash and cash equivalents of $228.6 million [3] Market Conditions - The housing market remains challenging due to lower consumer confidence, affordability concerns, and elevated mortgage interest rates [4] Future Outlook - KB Home expects housing revenue in the first quarter to be between $1.05 billion and $1.15 billion - The company guided for full-year 2026 housing revenue of $5.1 billion to $6.1 billion [5]

Core Viewpoint - KB Home (KBH) is facing weak demand, declining margins, and has cut its guidance, leading to a reiterated sell rating [1] Group 1: Demand and Margins - Demand for KB Home's products continues to be weak, indicating a challenging market environment [1] - Margins are declining faster than expected, which could impact profitability [1] Group 2: Guidance - The company's guidance suggests further declines, raising concerns about future performance [1]

Core Viewpoint - KB Home's shares dropped over 8% intra-day due to a cautious outlook for 2026, despite exceeding fourth-quarter earnings expectations [1] Financial Performance - The company reported adjusted earnings of $1.92 per share for the quarter ending November 30, 2025, surpassing analyst estimates of $1.79 [1] - Revenue for the quarter was $1.69 billion, slightly above the consensus forecast of $1.66 billion, but down 15.5% from $2.00 billion in the same quarter last year [1] Housing Deliveries and Pricing - Housing deliveries decreased by 9% to 3,619 homes, while the average selling price fell by 7% year over year to $465,600 [2] - The homebuilding operating income margin, excluding inventory-related charges, contracted to 7.8%, down from 11.5% in the prior-year period [2] Future Guidance - The company's fiscal 2026 guidance projected full-year housing revenue between $5.10 billion and $6.10 billion, indicating a potential decline from fiscal 2025 revenue of $6.21 billion [3] - For the first quarter, KB Home forecasted deliveries of 2,300 to 2,500 homes and housing revenue of $1.05 billion to $1.15 billion [3] Backlog Status - The company reported a quarter-end backlog of 3,128 homes valued at $1.40 billion, down from 4,434 homes valued at $2.24 billion a year earlier, highlighting ongoing challenges in the housing market [4]

Market Overview - The Dow is up by 0.5% today, but remains in the red for the week [1] - The NASDAQ has increased by over 1% today, turning positive for the week, while the S&P 500 is up just under 1% [2] - The bond market shows a slight increase in yields, with the 10-year Treasury yield up by 3 basis points today [3] Sector Performance - Technology has been a strong performer this week, with large-cap tech (XLK) up by 2% [4] - Consumer discretionary, led by Tesla and Amazon, is up by 1.3%, while energy has seen a decline of about 3% [5] - Notable stock movements include Nvidia up by 3.74% and Goldman Sachs up by 2% [6] Economic Outlook - Markets are reacting to cooler inflation data and a strong growth backdrop anticipated for 2026 [7] - Investors are focusing on potential rate cuts, earnings, and sector rotation as they prepare for the new year [7] - The Federal Reserve has cut rates by 175 basis points from the highs, indicating a move closer to a neutral rate [13] Fiscal Stimulus and Growth - Significant fiscal stimulus is expected to impact the economy in 2026, including corporate and personal tax changes [16] - The potential for increased capital expenditures (capex) is anticipated due to new corporate stimulus measures [16] AI and Technology Sector - The AI theme remains volatile, with a shift from broad market exposure to more selective stock picking expected in 2026 [18] - The MAG 7 tech stocks have shown mixed performance, with some like Alphabet and Nvidia performing well, while others like Microsoft and Meta have lagged [19] Small Cap Stocks - Small caps have recently rebounded, but there are concerns about sustainability given past performance trends [23] - The current small-cap index composition differs significantly from historical norms, leading to skepticism about future growth [25] Retail Sector Insights - Rivian's stock has been upgraded by Wedbush, citing 2026 as a pivotal year for the company [27] - KB Home reported fourth-quarter earnings that missed estimates, indicating ongoing challenges in the housing market [29] - Nike's second-quarter results reflect a turbulent year for retailers, with uneven performance across the sector [31] Honeywell's Performance - Honeywell's stock has underperformed compared to the broader industrial market, largely due to limited exposure to AI and data center growth [90] - The company is expected to benefit from the spin-off of its aerospace business, which could enhance its market position [92] EV Market Outlook - The EV market is facing headwinds, including the expiration of tax credits, but long-term demand is expected to remain strong [74] - ChargePoint's CEO emphasizes the importance of innovation and product development to drive growth in the EV charging sector [78] - The commercial and fleet markets for EVs are anticipated to grow as businesses seek lower total cost of ownership [86]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld here to take you through to the closing bell with a global simulcast. We're joined now by Carol Massar and Tim Stenovec in the radio room.Welcome to our audiences across all of our Bloomberg platforms as we pass the most crucial moments going on in the world of finance. But we do want to start off the simulcast here with a note here about the world of politics. We're now learning based on a headline ...

Group 1 - KB Home (NYSE:KBH) is a significant player in the U.S. homebuilding industry, competing with companies like Lennar Corporation and D.R. Horton [1] - RBC Capital has set a price target of $54 for KBH, which is approximately 6.07% lower than its current trading price of $57.49 [1] - The stock price of KBH has recently declined by 8.70%, equating to a decrease of $5.46, with daily fluctuations between a low of $56.45 and a high of $59.44 [2] Group 2 - Over the past year, KBH's stock has shown volatility, reaching a high of $72.64 and a low of $48.90, indicating significant price movements [3] - The market capitalization of KBH is approximately $4.02 billion, with a trading volume of 1,281,131 shares on the NYSE, reflecting strong investor interest [3] - Despite the recent decline, KBH's stock volatility suggests ongoing investor engagement and market dynamics [5]

Core Viewpoint - KB Home reported fourth-quarter fiscal 2025 results with earnings and total revenues exceeding Zacks Consensus Estimates but showing a year-over-year decline [1][5][10] Financial Performance - Adjusted EPS for Q4 was $1.92, beating the consensus estimate of $1.79 by 7.3%, but down from $2.53 in the prior year [5][10] - Total revenues reached $1.69 billion, surpassing the consensus mark of $1.65 billion by 2.8%, yet decreased by 15.5% year over year [5][10] - Homebuilding segment revenues were $1.686 billion, down 15.4% from $1.993 billion a year ago, with 3,619 homes delivered, a 9% decline from 3,978 units [6][10] Market Conditions - The company faced challenges due to low consumer confidence, affordability issues, and high mortgage rates, leading to a cautious outlook for Q1 and fiscal year 2026 [2][10] - Net orders fell 10.2% year over year to 2,414 units, with the value of net orders decreasing to $1.1 billion from $1.32 billion [7][10] Operational Strategy - KB Home aims to maintain high customer satisfaction, expand its build-to-order mix, and reduce construction cycle times while optimizing returns through disciplined pacing and pricing [3][10] - The company plans to open 35 to 40 new communities to enhance margins, primarily through a build-to-order model [3][10] Financial Position - As of November 30, 2025, KB Home had cash and cash equivalents of $228.6 million, down from $598 million at the end of fiscal 2024, with total liquidity of $1.43 billion [14] - The debt-to-capital ratio increased to 30.3% from 29.4% at the end of fiscal 2024 [14] Future Guidance - For Q1 fiscal 2026, KB Home expects housing revenues between $1.05 billion and $1.15 billion, down from $1.39 billion in the prior year, with deliveries projected at 2,300 to 2,500 homes [16][17] - For fiscal 2026, the company anticipates deliveries of 11,000 to 12,500 homes and housing revenues between $5.1 billion and $6.1 billion [18]