SPDR® S&P Homebuilders ETF

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  • uploads///Mortgage Rates
    Consumer

    Mortgage rates fall as bonds sell off, affecting homebuilders

    The average 30-year fixed-rate mortgage rose 12 basis points as the ten-year yield rose 10 basis points, and TBAs sold off. With the refinance boom over, originators are overstaffed.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing expected px appreciation
    Consumer

    Why consumers are more conservative about housing than the pros

    In the latest survey, consumers expect home prices to rise by 2.9% over the next 12 months. This is flat month-over-month and down 100 basis points year-over-year.

    By Brent Nyitray, CFA, MBA
  • uploads///Lennar Revenues
    Consumer

    Lennar reports increases in units and prices in 2nd quarter 2014

    For the second quarter, Lennar reported $1.64 billion in revenues. This is an increase of 29% year-over-year. Homebuilding revenues increased 28%, to $1.6 billion from $1.3 billion in the second quarter of 2013.

    By Brent Nyitray, CFA, MBA
  • uploads///NAHB Homebuilder Sentiment Index
    Consumer

    Homebuilder sentiment leaps in June

    The National Association of Homebuilder Sentiment Index is a closely-watched measure of future building activity The National Association of Homebuilders Sentiment Index measures the confidence of homebuilders. It gauges builder perceptions of current and future sales of single family residences and asks them to characterize them as “good,” “fair,” or “poor.”  It also asks the […]

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Consumer

    Why mortgage rates have been flat with the bond market, at 4.17%

    The average 30-year fixed-rate mortgage was flat at 4.17%, as the ten-year yield rose 1 basis point, while TBAs rallied. With the refinance boom over, originators are overstaffed

    By Brent Nyitray, CFA, MBA
  • uploads///Government Spending
    Consumer

    Does the economy need a government spending shot in the arm?

    Do we need a new New Deal? Construction spending doesn’t have to be simply residential (or private construction). Public construction also matters (however, it’s less than half of private construction dollars). The use of federal construction dollars to increase demand in the economy has been an issue of tremendous debate, with one side believing that […]

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Consumer

    Why construction spending pulls back in June

    Construction spending is just off its post-recession high, but it’s still depressed—current levels equate to mid-2003 spending levels—construction spending peaked at $1.2 trillion in March, 2006.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Consumer

    What to watch for in real estate next week

    The week ahead Earnings season is pretty much over. Only five companies will report next week; nobody related to real estate is reporting. Next week is not all that heavy data-wise, although we will get the S&P Case-Schiller Home Price Index and Pending Home Sales. The Case-Schiller data will be from March, which should begin […]

    By Brent Nyitray, CFA, MBA
  • uploads///Government Spending
    Consumer

    Must-know: Can the government do something for the economy?

    There has been a tug-of-war between the left-wing prescription of using the government to cushion the blows of a difficult economy and the right’s version of “let the markets clear.”

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing expected px appreciation
    Consumer

    Consumers are tempering their home price appreciation expectations

    The 2.3% home price expectation is much lower than the 6%–7% forecast we’re seeing out of the National Association of Realtors and the mid single-digit forecast we’re seeing from most Wall Street professionals.

    By Brent Nyitray, CFA, MBA
  • uploads///DHI Gross Margins
    Earnings Report

    D.R. Horton’s Gross Margins Fall Slightly

    Like most other builders, D.R. Horton has been reporting lower gross margins due to sticker shock. Home prices have been increasing, but wage growth has been stagnant.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Consumer

    Construction Spending Fell in June

    In June 2016, private construction fell 0.6%, and public construction fell 0.6% month-over-month.

    By Brent Nyitray, CFA, MBA
  • uploads///GDP
    Consumer

    GDP Will Be the Highlight This Week

    We’re nearing the end of August—many investment professionals will be watching markets from the beach. The second revision to Q2 GDP will be out on Friday.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Consumer

    Must-know: Why mortgage rates rose slightly as bonds sold off

    Mortgage rates are the lifeblood of the housing market, which is why the Fed began conducting quantitative easing (or QE) in the first place. Lower rates allow homeowners to refinance.

    By Brent Nyitray, CFA, MBA
  • uploads///Richmond Fed
    Consumer

    Manufacturing activity keeps improving in the Mid-Atlantic region

    The Richmond Fed Manufacturing Survey looks at business conditions in the Fed’s fifth district, which covers Washington, DC, Baltimore, Richmond, and Charlotte.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Completions
    Real Estate

    Foreclosure Completions Drop In October

    Since foreclosures represent a process that may or may not wind up with the bank owning the home, foreclosure completions are a better indicator of foreclosure activity than foreclosure starts.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Macroeconomic Analysis

    Last Week’s Housing Starts Came In Stronger than Expected

    Last week we had some stronger-than-expected economic data with housing starts and building permits topping 1.1 million.

    By Brent Nyitray, CFA, MBA
  • uploads///Consumer Price Index
    Consumer

    Investor outlook: Consumer price inflation meets the Fed’s target

    This report will probably hold the hawks on the Fed at bay and allow them to continue to maintain ultra-low interest rates. The Fed wants to see annual inflation of about 2%.

    By Brent Nyitray, CFA, MBA
  • uploads///New Home Sales
    Macroeconomic Analysis

    Why did new home sales surge in December?

    New home sales jumped 11.6% in December from a month ago to a seasonally adjusted annual rate of 481,000.

    By David Ashworth
  • uploads///Chart  Margin
    Company & Industry Overviews

    Why Are Lennar’s Higher Margins Unsustainable?

    Buyers are reluctant to pay higher prices, and builders have to offer incentives, which reduces margins. Lennar’s higher margins will not be sustainable.

    By Peter Barnes
  • uploads///leg pm
    Company & Industry Overviews

    Raymond James Downgrades Leggett & Platt to ‘Market Perform’

    Leggett & Platt (LEG) has a market capitalization of $7.2 billion. The stock fell by 1.3% to close at $51.87 per share on August 1, 2016.

    By Gabriel Kane
  • uploads///
    Macroeconomic Analysis

    The Housing Industry Is Painting a Positive Outlook for the Economy

    In April, the number of building permits issued was reported at 1.35 million, a decrease of 1.8% from the downward revised March reading of 1.37 million permits.

    By Ricky Cove
  • uploads///Chart  EBITDA Margin
    Company & Industry Overviews

    What Does D.R. Horton’s EBITDA Margin Say?

    D.R. Horton’s EBITDA margin was at 10.1% as on March 2015, much better compared to 2.3% for fiscal 2011.

    By Peter Barnes
  • uploads///DHI Gross Margins
    Earnings Report

    D.R. Horton Maintained Its Gross Margins

    D.R. Horton’s gross margins held steady at 19.9% in the fourth quarter of 2015. However, they fell on a YoY (year-over-year) basis from 20.5% in the fourth quarter of 2014.

    By Brent Nyitray, CFA, MBA
  • uploads///Hourly Earnings
    Macroeconomic Analysis

    The Jobs Report: This Week’s Highlight for REIT Investors

    We’ll get a lot of important economic data this week, and the biggest release will be the jobs report on Friday.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Consumer

    Mortgage Rates Are Not Buying The Rally Yet

    The average 30-year fixed-rate mortgage decreased six basis points to close at 3.92%. The ten-year bond rose and yields decreased by 15 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Leading Economic Indicators
    Consumer

    Index of Leading Economic Indicators takes a breather in August

    The Index of Leading Economic Indicators (or LEI) is a business cycle indicator. It’s based on 11 different economic statistics—average workweek, initial jobless claims, new orders, building permits, unfilled durable goods, commodity prices, consumer expectations, stock prices, and money supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Consumer Price Index
    Consumer

    Must-know: Inflation remains well-contained at the consumer level

    Inflation is a double-edged sword. The Fed (or Federal Reserve) likes to see a little inflation because it’s associated with rising wages. But deflation causes a lot of economic problems, especially for the Fed.

    By Brent Nyitray, CFA, MBA
  • uploads///Part
    Company & Industry Overviews

    Why Lowe’s Is Bullish on Its Prospects in the Medium Term

    Lowe’s (LOW) expects year-over-year sales growth in fiscal 2016 to come in between 4.5%-5%.

    By Phalguni Soni
  • uploads///Part
    Company & Industry Overviews

    Restoration Hardware’s New Luxury Retail Mantra: Bigger Is Better

    On its 1Q16 earnings call, Restoration Hardware unveiled RH Modern, a new luxury retail concept store. It will be six to eight times the size of its other stores.

    By Phalguni Soni
  • uploads///Bloomberg Consumer Comfort
    Consumer

    Bloomberg consumer comfort index hits a post-recession high, good for homebuilders

    The Bloomberg Consumer Comfort Index rose to -28.3 for the week ending June 23 The Bloomberg Consumer Comfort Index is a weekly sentiment index that covers three critical variables: respondents’ perception of the state of the economy, their evaluation of their personal finances, and whether it’s a good time to purchase goods and services. The […]

    By Brent Nyitray, CFA, MBA
  • uploads///Housing Starts LT
    Consumer

    How D.R. Horton plans to address the first-time homebuyer

    D.R. Horton CEO Donald Tomnitz said that the first-time homebuyer will drive the next leg in the sector and has been underserved in this recovery.

    By Brent Nyitray, CFA, MBA
  • uploads///part
    Company & Industry Overviews

    What You Should Know about Stanley Security’s Business Mix

    The Stanley Security business saw a steady decline in the last four years with sales falling from $2.4 billion in 2012 to ~$2.1 billion in 2015.

    By Shannon Black
  • uploads///globe trotter __
    Consumer

    Nasdaq Flirts with Down 10%…in October

    So this is painful. Very few were perfectly positioned into this selloff.

    By JP Gravitt
  • uploads///Housing starts
    Macroeconomic Analysis

    A Closer Look at the August 15 Drop in Housing Starts

    Housing starts fell from a downward-revised ~1.16 million to ~1.13 million in August 2015. This was below Wall Street estimates of just over 1.16 million.

    By Brent Nyitray, CFA, MBA
  • uploads///JOLT Job Openings
    Consumer

    The FOMC Leaves The Big Question About Jobs Unanswered

    There was no discussion of the “speed limit” issue in the July FOMC minutes. This is generally a “cyclical versus structural unemployment” issue.

    By Brent Nyitray, CFA, MBA
  • uploads///KB Home EPS
    Earnings Report

    What Happened to KB Home’s Earnings in 2Q16?

    KB Home’s net income came in at $15.6 million on a GAAP (generally accepted accounting principles) basis, as compared to $9.6 million in 2Q15.

    By Brent Nyitray, CFA, MBA
  • Consumer

    Why Armstrong World Industries’ profits drop in 2Q

    Armstrong World Industries stock fell at the end of last month. Its 2Q14 earnings and revenue fell short of analysts’ expectations. Revenue was up 0.5% to $710 million compared to the same quarter last year. Adjusted diluted earnings per share (or EPS) fell 1% to $0.60. Net income declined 31.4% to $21 million.

    By Samantha Nielson
  • Consumer

    Why higher costs and charges impact Armstrong’s business segments

    Resilient Flooring net sales in the second quarter and first six months of 2014 declined 2%. Net sales were driven by lower volume in the Americas and Europe. Operating income also declined.

    By Samantha Nielson
  • uploads///MBA Purchase Index
    Financials

    Seasonality Trumps The Bond Market Rally

    The MBA Purchase Index decreased 6.9% in the week ended December 12, 2014, despite a strong bond market rally.

    By Brent Nyitray, CFA, MBA
  • uploads///leg pm
    Company & Industry Overviews

    Leggett & Platt Will Discuss Its Target and Opportunities on September 14

    LEG rose by 0.27% to close at $51.84 per share during the fifth week of August, with weekly, monthly, and YTD price movements were 0.27%, -1.8%, and 25.1%.

    By Gabriel Kane
  • uploads///Chart
    Company & Industry Overviews

    Why you should invest in homebuilder ETFs like XHB and ITB

    ETFs present another investment avenue. Apart from pure homebuilder ETFs, there are many other ETFs that offer exposure to homebuilders.

    By Peter Barnes
  • uploads///Household formation vs Housing Starts
    Consumer

    Must-know: Will the government help the first-time homebuyer?

    Between low prices and low borrowing rates, the first-time homebuyer should have been set. However, lenders greatly tightened credit standards and many first-time homebuyers found themselves shut out of the mortgage market.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Public GDP
    Company & Industry Overviews

    Analyzing the New Deal: Do We Need a New One?

    Historically, the use of public construction dollars has been the big lever that the government uses to stimulate the economy. This dates back to the New Deal.

    By Brent Nyitray, CFA, MBA
  • uploads///Industrial Production
    Consumer

    A decline in manufacturing causes industrial production to fall

    Up until January, industrial production and manufacturing production had been accelerating, so it is premature to draw any major conclusions from one disappointing report.

    By Brent Nyitray, CFA, MBA
  • uploads///FHFA House Price Index
    Consumer

    Must-know: Why home-price appreciation is leveling off

    In July, home prices increased 0.1% month-over-month. They’re up 4.4% year-over-year (or YoY). Prices are now within 6.5% of their April 2007 peak. They correspond to the levels in July 2005. Real estate values drive consumer confidence and spending. They have an enormous impact on the economy.

    By Brent Nyitray, CFA, MBA
  • uploads///tom rumble lvzopTxjOU unsplash
    Consumer

    Federal Reserve forecasts 2.55% GDP growth in 2013

    The Federal Reserve includes formal economic forecasts like GDP in the minutes from its Federal Open Market Committee (or FOMC) meetings.

    By Brent Nyitray, CFA, MBA
  • uploads///construction spending percent
    Consumer

    Why construction spending is so important to the economy

    Historically, construction spending has led economies out of a recession.

    By Brent Nyitray, CFA, MBA
  • uploads///New Home Sales  year
    Consumer

    New home sales increase 29% from a year ago, positive for homebuilder stocks

    May new home sales, as reported by the Census Bureau and the Department of Housing and Urban Development, increased 2.1% from April New home sales increased to an annualized pace of 454,000, up 2.3% from April (which was revised upward from an initial estimate of 454,000 to 466,000) and up 29% from a year ago. […]

    By Brent Nyitray, CFA, MBA
  • uploads///nfpvadp
    Consumer

    Can Investors Keep Forecasting the Final Non-Farm Payroll Correctly?

    ADP’s June non-farm payroll numbers indicated an increase of 172,000 jobs in the private sector. ADP’s non-farm payrolls have been mostly accurate.

    By David Meyer
  • uploads///MBA Purchase Index
    Consumer

    Purchase applications fall as we enter the seasonally slow period

    The MBA Purchase Index decreased 2.6% last week in response to strong bond market sell-off and a holiday-shortened week. We’re entering the seasonally slow period for the real estate sector, which pretty much lasts as long as football season.

    By Brent Nyitray, CFA, MBA
  • uploads///Manufacturing Production
    Consumer

    Manufacturing production drops due to bad winter weather

    Manufacturing output fell 0.8% after increasing 0.3% in December. The output for utilities rose 4.1% in January on cold weather in the Northeast.

    By Brent Nyitray, CFA, MBA
  • uploads///Richmond Fed
    Consumer

    Mid-Atlantic manufacturing remains sluggish, bad news for NVR?

    The Richmond Fed Manufacturing Survey looks at business conditions in the Fed’s fifth district, which covers Washington, DC, Baltimore, Richmond, and Charlotte The Richmond Fed Manufacturing Survey is sent out to companies in the Mid-Atlantic states and covers current business conditions, shipments, new orders, backlog, and inventory. It’s similar to the other surveys put out […]

    By Brent Nyitray, CFA, MBA
  • uploads///Personal Consumption Expenditure Core Rate Chg
    Consumer

    Inflation continues to come in below the Fed’s target: What does this mean? A double-edged sword?

    Inflation is a double-edged sword. The Fed (or Federal Reserve) likes to see a little inflation because it’s associated with rising wages. But deflation causes a lot of economic problems, especially for the Fed.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing Starts LT
    Consumer

    Must-know: Current housing starts from a historical perspective

    Following the collapse, we saw starts average around 687,000 units per year, with a low of under half a million.

    By Brent Nyitray, CFA, MBA
  • uploads///Chart  ETF
    Company & Industry Overviews

    Investing in Lennar through Homebuilder ETFs

    Lennar sees allocation in major sector-specific homebuilder ETFs such as the SPDR S&P Homebuilders ETF (XHB). XHB has a 3.36% stake in Lennar.

    By Peter Barnes
  • uploads///Housing Starts LT
    Consumer

    Could margins for homebuilders like Toll Brothers contract?

    Manufacturing activity is a good sign for job growth, which has been the Achilles’ heel of this recovery. Although manufacturing isn’t the driver of the economy that it used to be, it still matters.

    By Brent Nyitray, CFA, MBA
  • uploads///margins
    Consumer

    Can Lowe’s Expand Its Fiscal 2Q16 Operating Margin?

    Lowe’s Companies’ (LOW) gross margin dipped by 43 basis points to 35% in fiscal 1Q16.

    By Amanda Lawrence
  • uploads///tom rumble lvzopTxjOU unsplash
    Consumer

    Real Estate Price Appreciation widely dispersed by location

    The Zillow Home Value Index (ZHVI) rose 5.1% year-over-year to $157,600. The ZHVI is a modeled index, based on the average zillow estimate of home values in each area. The Zillow index is not solely based on home sales, so it isn’t really a comparable index to Case-Schiller. It is closer to Radar Logic, which […]

    By Brent Nyitray, CFA, MBA
  • uploads///NAHB Housing Market Index
    Macroeconomic Analysis

    Behind Homebuilder Sentiment So Far in May

    The NAHB Wells Fargo Housing Market Index measures homebuilder sentiment has been increasing steadily since 2009. Recently, it’s started to accelerate.

    By Brent Nyitray, CFA, MBA
  • uploads///part a
    Company & Industry Overviews

    What’s Stanley Black & Decker’s Market Position?

    Stanley Black & Decker (SWK) has a stupendous record of launching at least 1,000 products every year at an average of three products a day.

    By Shannon Black
  • uploads///ISM PMI
    Consumer

    Institute of Supply Management’s Purchasing Managers Index falls in April

    The Institute of Supply Management index assesses the state of manufacturing in the United States. The Institute of Supply Management (ISM) Purchasing Manager’s Index (PMI) is similar to the other regional PMI indices, however it covers the entire country. The ISM PMI looks at various business indices like new orders, production, employment, supplier deliveries, inventory, […]

    By Brent Nyitray, CFA, MBA
  • uploads///KB Home Revenue
    Earnings Report

    KB Home Just Reported Strong Revenue Growth for 2Q16

    For 2Q16, KB Home reported revenues of $811 million, which easily topped the Wall Street estimate consensus of $750 million. Revenues increased by 30% YoY.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed funds target
    Consumer

    A bond market sell-off greets Yellen’s first FOMC announcement

    Yesterday, the Federal Reserve ended its March FOMC meeting and decided to continue to reduce asset purchases.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Real Estate

    Mortgage rates fall despite a bond market sell-off

    Over the past several months, mortgage rates and the ten-year bond yield stopped correlating. Last week, this trend broke as the two variables lined up once again.

    By Brent Nyitray, CFA, MBA
  • uploads///part
    Company & Industry Overviews

    A Brief Overview of Honeywell Automation and Control Solutions

    Honeywell (HON) provides control solutions for various residential and industrial applications through the Honeywell Automation and Control Solutions–ACS unit.

    By Shannon Black
  • uploads///Part
    Company & Industry Overviews

    Why Lowe’s Bought Orchard Supply and Is Eyeing Smaller Stores

    Lowe’s is also experimenting with the idea of rolling out other smaller format stores like City Center stores in other under-penetrated and high-density urban areas in the US.

    By Phalguni Soni
  • uploads///Pending Home Sales
    Consumer

    A lack of first-time buyers: Pending home sales fall again

    The return of the first-time homebuyer is the missing link to a more normal housing market. Household formation numbers have been depressed since the Great Recession began.

    By Brent Nyitray, CFA, MBA
  • uploads///part
    Company & Industry Overviews

    What Are Stanley Black & Decker’s Business Segments?

    Stanley Black & Decker (SWK) markets its products through three business segments: Global Tools & Storage, Security, and Industrials.

    By Shannon Black
  • uploads///Housing Starts
    Consumer

    Housing starts dampened by wet weather in the Midwest

    Housing starts are a critical predictor of future home builder sales Housing starts are released jointly by the Census Bureau and the Department of Housing and Urban Development. Analysts use the information to anticipate future production for home builders, future demand for raw materials, and labor costs. This data will even affect the forecasts for […]

    By Brent Nyitray, CFA, MBA
  • uploads///Chart  ETF
    Company & Industry Overviews

    How to Invest in D.R. Horton through ETFs

    D.R. Horton sees allocation in major homebuilding sector-specific ETFs like the iShares Dow Jones US Home Construction Index Fund (ITB).

    By Peter Barnes
  • uploads///Part
    Company & Industry Overviews

    Lowe’s Retail and Pro Customers: Who Accounts for More Sales?

    The retail customer accounts for about 70% of Lowe’s sales. However, retail customers account for about two-thirds of Home Depot’s (HD) customer base.

    By Phalguni Soni
  • uploads///Part
    Macroeconomic Analysis

    March Retail Sales Prove Bullish for Most Categories

    Building materials and garden equipment and supplies dealers accounted for ~6.4% of March retail sales. Home furnishing and furniture stores accounted for ~2% of sales.

    By Phalguni Soni
  • uploads///JOLT Job Openings
    Macroeconomic Analysis

    This Week’s Important Labor Releases for REIT Investors

    The week after the jobs report is usually pretty data-light, although this week does have some important labor and manufacturing data.

    By Brent Nyitray, CFA, MBA
  • uploads///bfcebacbcbbcebeedd
    Macroeconomic Analysis

    The bad: Why the housing market has yet to find shelter

    The housing market, especially construction, has been a cause of concern to policymakers in the Federal Reserve.

    By David Ashworth
  • uploads///inflation
    Macroeconomic Analysis

    Why May’s Inflation Was Just Hot Enough

    On June 12, the US Bureau of Labor Statistics reported that US consumer prices rose 0.2% in May, adding to the 0.2% increase seen in April.

    By Ricky Cove
  • uploads///
    Miscellaneous

    Lowe’s Valuation Multiple Compared to Its Peers

    Lower-than-expected 1Q17 earnings and unfavorable macroeconomic indicators made investors skeptical about Lowe’s future earnings.

    By Rajiv Nanjapla
  • uploads///Lennar Revenues
    Earnings Report

    Lennar Keeps Reporting Big Increases in its Revenue

    For the first quarter of 2015, Lennar (LEN) reported $1.6 billion in revenue. This is an increase of 21% year-over-year.

    By Brent Nyitray, CFA, MBA
  • uploads///Manufacturing Production
    Financials

    Manufacturing Production Increased In November

    Manufacturing output increased 1.1% in November. Durable goods’ production increased 1%. Auto-related manufacturing increased as well. Business equipment increased 1.2%.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Consumer

    Housing starts increase in September to 1.018 million

    Most builders—like Lennar (LEN), PulteGroup (PHM), D.R. Horton (DHI), and KB Home (KBH)—noted that traffic was beginning to decline. Buyers experienced sticker shock.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing good time to buy
    Macroeconomic Analysis

    Introduction to the Fannie Mae National Housing Survey

    Homebuilders use data from the Fannie Mae survey to measure consumers’ attitudes toward future home price appreciation. This affects attitudes about risk-taking.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Consumer

    Must-know: Why did construction spending tick up in April?

    Construction spending rose to a seasonally adjusted annual rate of $953.5 billion in April from $951.6 billion in April. Spending is up 8.6% year-over-year.

    By Brent Nyitray, CFA, MBA
  • uploads///construction spending percent
    Real Estate

    Construction spending is very important for the economy

    If residential home prices begin to level off, then the builders will have to increase units to drive the top line. This will be bullish for the economy because it will put a lot of people to work.

    By Brent Nyitray, CFA, MBA
  • uploads///New Home Sales
    Macroeconomic Analysis

    New Home Sales Rose to a 7-Year High in February 2015

    The report on new home sales looks at new, privately owned single-family homes sold in a month. New home sales account for one-tenth of the US housing market.

    By David Ashworth
  • uploads///Housing Starts LT
    Macroeconomic Analysis

    Housing Starts Have A Long Way To Go To Reach Normalcy

    Following the collapse, we saw starts average ~687,000 units per year with a low of under half a million. That’s a tremendously depressed level.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Completions
    Consumer

    Will foreclosure completions’ 1,000 unit rise affect builder stocks?

    Foreclosure activity is closely watched by investors, realtors, and homebuilders alike because it forecasts future housing supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Part
    Consumer

    Did Home Depot Beat Wall Street Expectations for Fiscal 2016?

    Home Depot reported record results for both the quarter and the fiscal year. The company also beat market expectations for both revenue and adjusted EPS in the fourth quarter.

    By Phalguni Soni
  • Consumer

    Why Armstrong World Industries lowers full year guidance

    Shares fell at the end of July because of the company’s lackluster outlook. The outlook was based on the market activity in May and June. It was also based on the recent downward revisions to gross domestic product (or GDP). AWI lowered its full year guidance for sales by $100 million.

    By Samantha Nielson
  • Consumer

    Why home prices should be moderated—Home Price Index

    The 20-city index reading for March, implied an average month-on-month (or MoM) price increase of 0.9% in the 20 metros tracked by the index.

    By Phalguni Soni
  • uploads///Housing Starts LT
    Macroeconomic Analysis

    Declining energy prices may not be enough to maintain margins

    Manufacturing activity is a good sign for job growth. Job growth has been the Achilles’ heel of this recovery. Although manufacturing isn’t the economic driver it used to be, it still matters.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Starts
    Real Estate

    Foreclosure Starts Drop: Good News For The Builders

    The overall drop in foreclosure activity over the past year is good news for homebuilders. Currently, gross margins are experiencing seven-year highs.

    By Brent Nyitray, CFA, MBA
  • uploads///construction spending percent
    Real Estate

    Putting Construction Spending Into Economic Perspective

    We’ve seen big increases in average selling prices out of homebuilders such as Lennar Corporation (LEN), Toll Brothers Inc. (TOL), D.R. Horton, Inc. (DHI), and Pulte Homes, Inc. (PHM).

    By Brent Nyitray, CFA, MBA
  • uploads///Building Permits
    Industrials

    Building Permits Fall In November As Skilled Labor Becomes An Issue

    Building permits and housing starts data are released jointly by the Census Bureau and the Department of Housing and Urban Development.

    By Brent Nyitray, CFA, MBA
  • uploads///Manufacturing Production
    Financials

    Manufacturing Activity Continues to Chug Along

    We’re seeing energy-intensive industries relocate back to the US. This will do wonders for the employment picture. It will provide good-paying middle-class jobs—which this country desperately needs.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Starts
    Real Estate

    Why foreclosure starts tick up in September

    The large foreclosure pipeline in the judicial states is one reason why prices are still weak in the northeast. Homebuyers don’t focus solely on existing supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Real Estate

    Construction spending falls again, a negative for the economy

    Construction spending is just off its post-recession high, but it’s still depressed. Current levels equate to mid-2003 spending levels.

    By Brent Nyitray, CFA, MBA
  • Financials

    Why we need to relook at the consumer in this week’s releases

    This week is full of indicators, with most of them being measures of national-level economic activity.

    By Phalguni Soni
  • Financials

    Why durable goods trends affect key wholesale trade releases

    The Monthly Wholesale Trade Survey gives you nationwide estimates of monthly sales, end-of-month inventories, and inventories-to-sales ratios by businesses for wholesale firms.

    By Phalguni Soni
  • Financials

    Offloading Treasuries and MBS positions will affect the market

    If the Fed reduced its Treasury and MBS holdings, a considerable amount of liquidity would be erased from the market. Interest rates would likely trend higher.

    By Phalguni Soni
  • uploads///Part
    Consumer

    Market Share Play: Lowe’s Bid to Gain Scale in Canada with Rona

    The Rona (RON.TO) acquisition should give Lowe’s (LOW) a market-leading position in Canada’s home improvement market, estimated at over $45 billion Canadian.

    By Phalguni Soni
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