Homebuilder Stocks Rally Despite Horrible Home Resale Data
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After initially falling on the horrible existing home sales number, homebuilder stocks are now rallying.
Data today showed that home resales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, marking the lowest level since May 1995. The pace from June was revised down to 5.26 million units.
ETF SPDR S&P Homebuilders (NYSE: XHB) hit an intra-day low of $13.59 after the report, but is now up 0.7 percent to $14.15.
The action is likely related to short covering, with the sector down 15 percent over the last three months and near 52-week low levels.
Individual homebuilders that are seeing interest today include: DR Horton (NYSE: DHI) +2.7 percent, KB Home (NYSE: KBH) +2.1 percent, Ryland (NYSE: RYL) +2.7 percent, Lennar (NYSE: LEN) +1.3 percent.
Data today showed that home resales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, marking the lowest level since May 1995. The pace from June was revised down to 5.26 million units.
ETF SPDR S&P Homebuilders (NYSE: XHB) hit an intra-day low of $13.59 after the report, but is now up 0.7 percent to $14.15.
The action is likely related to short covering, with the sector down 15 percent over the last three months and near 52-week low levels.
Individual homebuilders that are seeing interest today include: DR Horton (NYSE: DHI) +2.7 percent, KB Home (NYSE: KBH) +2.1 percent, Ryland (NYSE: RYL) +2.7 percent, Lennar (NYSE: LEN) +1.3 percent.
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