In July 2016, non-farm payrolls rose by 255,000. Non-farm payrolls easily topped Wall Street analysts’ estimate of 185,000.
There isn’t much in the way of market-moving economic data this week. One of the highlights will be the JOLTS job openings data on Wednesday.
In the quarter ending June 30, 2016, public construction spending fell to 1.5% on a month-over-month basis.
In June, housing starts rose to an annualized rate of 1.2 million from 1.1 million the month before. Building permits rose from 1.1 million to 1.2 million, as well.
In June, the share of existing home sales attributable to the first-time homebuyer was 33%—up 3 percentage points from May.
In June 2016, private construction fell 0.6%, and public construction fell 0.6% month-over-month.
In the quarter ending June 30, construction spending as a percentage of GDP slipped to 6.1%. Over the past 50 years, the average has been closer to 8.4%.
In June 2016, existing home sales reached an annualized ~5.6 million. In May, existing home sales were ~5.5 million.
The NAHB Wells Fargo Housing Market Index peaked at 71 during the height of the housing bubble in late 2005.
Overall, permits for single-family residences rose slightly from 731,000 to 738,000. Multifamily permits rose from 389,000 to 405,000.
In June 2016, housing starts rose from 1.1 million to ~1.2 million. We also saw increases in both single-family and multifamily starts.
Like most of the other builders, D.R. Horton (DHI) has been reporting lower gross margins due to sticker shock.
D.R. Horton (DHI) reported net income of $294.8 million, or $0.66 per share, for 3Q16.
D.R. Horton (DHI) sounded relatively optimistic on its conference call. It was clearly happy with the most recent quarter despite the stock price reaction.
D.R. Horton (DHI) reported 3Q16 revenue of $3.1 billion, a 10% increase on a YoY (year-over-year) basis and a sequential increase of ~17%.
PulteGroup announced the second phase of its value creation strategy—reducing costs, reducing land investment, and increasing share buybacks.
PulteGroup (PHM) reported net income of $118 million or $0.34 per share. This beat Wall Street analysts’ estimate of $0.33 per share.
PulteGroup’s (PHM) gross margins for 2Q16 came in at 21.5%—down 40 basis points year-over-year and 180 basis points from the fourth quarter.
PulteGroup (PHM) reported 2Q16 revenues of $1.8 billion—a 41% increase from a year ago. Revenues increased in home sales and financial services.
Fannie Mae’s monthly National Housing Survey asked respondents if it’s a good time to buy and sell a house. They’re more confident that it’s a good time to sell.