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Tag: D R Horton Inc

  • S&P 500's year-end rally lifts 51 stocks to a record close

    S&P 500's year-end rally lifts 51 stocks to a record close

    It has been a record day for 10% of the S&P 500.

    A group of 51 stocks in the benchmark equity index swept to record finishes on Tuesday, the most since April 20, 2022, according to a tally from Dow Jones Market Data.

    It was a record day for 51 stocks in the S&P 500.


    Dow Jones Market Data

    Stocks that logged a record close on Tuesday included Allstate Corp
    ALL,
    +0.90%    ,
    Costco Wholesale
    COST,
    +0.90%    ,
    D.R. Horton, Inc.
    DHI,
    +0.65%    ,
    Mastercard
    MA,
    +1.21%    ,
    T-Mobile US Inc.,
    TMUS,
    +1.00%
    Visa Inc.
    V,
    +1.19%
    and Waste Management Inc.,
    WM,
    +1.85%
    among others.

    Equities have been in a year-end rally mode, driven higher by tumbling benchmark yields that finance much of the U.S. economy and expectations of coming interest-rate cuts.

    The 10-year Treasury rate
    BX:TMUBMUSD10Y
    fell to 4.2% on Tuesday from a high of about 5% in October.

    The Dow Jones Industrial Average
    DJIA
    on Tuesday ended at its third-highest level on record, while the S&P 500 index
    SPX
    and Nasdaq Composite Index
    COMP
    added to a string of new closing highs for 2023. The Dow finished 0.6% away from its record close logged almost two years ago, while the S&P 500 was only 3.2% below its close from the same period, according to Dow Jones Market Data.

    The push higher for stocks followed inflation data for November that showed price pressures continued to ease from peak levels, but still were above the Fed’s 2% annual target.

    The consumer-price index pegged the annual rate of inflation at 3.1%, down from 3.2% in October, with the “last mile” of inflation expected to be the hardest part to tame.

    Investors now will be focused on Wednesday’s Federal Reserve decision. Short-term interest rates are expected to remain unchanged at a 22-year high, but the central bank is expected to update its “dot plot” forecast of rates over a longer time horizon.

    “Although the market will focus on the timing of rate cuts, we suspect Chair Powell will be keen to strike notes of caution to avoid financial conditions easing too much further to ensure the Fed continues to see encouraging progress on inflation,” said Emin Hajiyev, senior economist at Insight Investment, in emailed comments.

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  • How one big stock-market investor is positioning for a decade of inflation

    How one big stock-market investor is positioning for a decade of inflation

    With the threat of inflation back at the forefront for many investors, there’s one large stock-market investor positioning for it to be a decade-long phenomenon. In a note posted to the firm’s website, Chief Investment Officer William Smead of Phoenix-based Smead Capital Management, which oversees $5.83 billion in assets, said “we are loaded with inflation beneficiary stocks like oil and gas stocks and useful real estate.” The firm likes home builder D.R. Horton DHI; Simon Property Group SPG, a real estate investment trust…

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  • June home sales drop to the slowest pace in 14 years as short supply chokes the market

    June home sales drop to the slowest pace in 14 years as short supply chokes the market

    A house is for sale in Arlington, Virginia, July 13, 2023.

    Saul Loeb | AFP | Getty Images

    Sales of pre-owned homes dropped 3.3% in June compared with May, running at a seasonally adjusted annualized rate of 4.16 million units, according to the National Association of Realtors.

    Compared with June of last year, sales were 18.9% lower. That is the slowest sales pace for June since 2009.

    The continued weakness in the housing market is not for lack of demand. It’s all about a critical shortage of supply. There were just 1.08 million homes for sale at the end of June, 13.6% less than June of 2022. At the current sales pace, that represents a 3.1-month supply. A six-month supply is considered balanced between buyer and seller.

    “There are simply not enough homes for sale,” said Lawrence Yun, chief economist for the Realtors. “The market can easily absorb a doubling of inventory.”

    That dynamic is keeping pressure under home prices. The median price of an existing home sold in June was $410,200, the second-highest price ever recorded by the Realtors. Last June’s price was the highest, but by barely 1%. This median measure, however, also reflects what’s selling, and right now, with mortgage rates much higher than last year, the low end of the market is most active.

    “Home sales fell, but home prices have held firm in most parts of the country,” Yun said. “Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month.”

    Sales are unlikely to recover anytime soon, as mortgage rates weigh heavy on affordability. The Realtors measure June sales based on closings, so contracts that were likely signed in April and May. Mortgage rates hung in the mid 6% range during that time and then shot up over 7% at the very end of May. Rates stayed in the 7% range for all of June, as home prices rose.

    First-time buyers are struggling the most. Their share of June sales fell to 26%, down from 30% in June 2022. That is the lowest share since the Realtors began tracking this metric.

    The higher end of the market, however, appears to be recovering. While sales were down across all price points, they were down least at the higher end. That was not the case last year, when higher-priced home sales were dropping off sharply.

    As the competition heats up, buyers are increasingly using cash to win over sellers. All-cash sales made up 26% of June transactions, slightly higher than both May and June of last year.

    Sales are unlikely to rebound soon in the existing home market, but sales of newly built homes are reaping the benefits. The nation’s largest homebuilder, DR Horton, reported a big jump in new orders jumping in its latest earnings release Thursday.

    “Despite continued higher mortgage rates and inflationary pressures, our net sales orders increased 37% from the prior year quarter, as the supply of both new and existing homes at affordable price points remains limited and demographics supporting housing demand remain favorable,” said Donald Horton, chairman of the board, in a release.

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  • These companies reporting next week have a history of beating earnings estimates

    These companies reporting next week have a history of beating earnings estimates

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  • Housing stocks see broad rally after strong home-sales data

    Housing stocks see broad rally after strong home-sales data

    The home-building sector enjoyed a broad rally in morning trading Tuesday, after data showing existing-home sales in February rose a lot more than expected. The iShares U.S. Home Construction exchange-traded fund
    ITB,
    +0.99%
    climbed 1.3% toward a five-week high, with all 48 equity components gaining ground. Among the ETF’s more active components, shares of Home Depot Inc.
    HD,
    -0.02%
    advanced 0.9%, D.R. Horton Inc.
    DHI,
    +0.04%
    rose 0.5%, KB Home
    KBH,
    +2.83%
    tacked on 2.4%, Lennar Corp.
    LEN,
    +1.27%
    rallied 1.3% and PulteGroup Inc.
    PHM,
    +1.03%
    was up 1.1%. The National Association of Realtors said Tuesday that existing-home sales for February leapt 14.5% to an annual rate of 4.58 million, the largest increase since July 2020, enough to reverse 12 months of losses and well above expectations of 4.2 million. The home construction ETF has hiked up 12.0% over the past three months, while the S&P 500
    SPX,
    +1.27%
    has gained 2.7%.

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  • Final Trades: M, JPM, DHI & KO

    Final Trades: M, JPM, DHI & KO

    The final trades of the week. With CNBC's Sara Eisen and the Fast Money traders, Tim Seymour, Courtney Garcia, Jeff Mills and Steve Grasso

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  • Mortgage rates drop to the 5% range for the first time since September

    Mortgage rates drop to the 5% range for the first time since September

    Prospective buyers at an open house in Florida.

    Mike Stocker | South Florida Sun Sentinel | Tribune News Service | Getty Images

    The average rate on the 30-year fixed rate mortgage has fallen to 5.99%, according to Mortgage News Daily.

    The housing market hasn’t seen the rate with a five handle since a brief blip in early September. Before that, it was in early August.

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    The rate started this week at 6.21% and fell sharply Wednesday after Federal Reserve Chairman Jerome Powell said inflation “has eased somewhat but remains elevated,” which was a shift from previous language.

    That sent bond yields lower, and mortgage rates loosely follow the yield on the 10-year Treasury.

    “Measured steps can continue as long as the economic and inflation data is there to support them. This means rates can make progress down into the 5’s but are unlikely to stampede quickly into the 4’s,” said Matthew Graham, chief operating officer at Mortgage News Daily. “I’m not saying that won’t happen–just that it would take a bit more time than some of the rate rallies we remember from the past.”

    Mortgage rates peaked in October with the 30-year fixed at 7.37% and have been sliding since then. For potential homebuyers that means savings. For a consumer purchasing a $400,000 home today with a 20% down payment, the monthly payment is $293 less than it would have been in October.

    Lower rates already appear to be juicing buyer interest.

    Pending home sales, which measure signed contracts on existing homes, rose in December for the first time in six months. They gained 2% compared with November, according to the National Association of Realtors. 

    Stocks of the nation’s homebuilders have been on a tear since rates started to fall back and several are seeing 52-week highs Thursday. The U.S. Home Construction ETF is hitting a new one-year high, up over 3% on the day.

    Homebuilder stocks are also reacting positively to earnings beats reported this week from PulteGroup and last week from the nation’s largest homebuilder, D.R. Horton. Both builders reported seeing renewed buyer interest in December, attributing that to lower mortgage rates.

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