SPDR® S&P Homebuilders ETF
Will Home Depot’s Upward Momentum to Continue?
As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.
May Housing Starts Data: Positive for Homebuilders?
The April housing starts report was a relief for homebuilders. Their confidence has been struggling. The May report was slightly below the estimate. Consumer spending is still strong after the May retail sales report.
Are Housing Starts Data Looking Positive for Homebuilders?
Given the significant setbacks in housing data over the last few months, homebuilders’ confidence has taken a back seat.
How Building Permits and the Housing Market Can Predict Trends
When real estate developers or REITs like AvalonBay (AVB) are confident about the economy, they build more in anticipation of future demand from consumers.
Bed Bath & Beyond Refreshes Its Board, Co-Founders Step Down
On April 22, Bed Bath & Beyond (BBBY) announced that it’s refreshing its board. The company is replacing its five independent directors.
How Did Bed Bath & Beyond Fare in the Fourth Quarter?
Bed Bath & Beyond (BBBY) posted fourth-quarter earnings after the market closed on April 10.
Home Depot Stock Up ~7.3% Since Last Earnings: More Upside Ahead?
As of April 5, Home Depot (HD) was trading at $202.06, a rise of 7.3% since its fourth-quarter earnings announcement on February 26.
Could Williams-Sonoma Stock Continue to Rise?
Yesterday, Williams-Sonoma (WSM) was trading at $57.18, 27.0% higher than its 52-week low of $45.01 and 22.7% lower than its 52-week high of $73.99.
Why Bed Bath & Beyond Stock Rose ~22% on March 26
On March 26, the three activist funds that together own a ~5% stake in Bed Bath & Beyond (BBBY) nominated 16 candidates for election to BBBY’s board.
Why Investors Are Optimistic about RH’s Q4 Earnings
RH (RH) is scheduled to post its fiscal 2018 fourth-quarter earnings results after the market closes on March 28.
Williams-Sonoma Beats Analysts’ Fourth-Quarter Estimates
Williams-Sonoma (WSM) released its fourth-quarter results after the market closed yesterday.
RH Stock Up ~20% in 2019: Is There More Upside?
As of March 7, RH (RH) was trading at $144.61, which represents a rise of 20.7% since the beginning of 2019.
Can Home Depot and Lowe’s Stock Price Momentum Continue?
Last year, home improvement retailers had a tough time. The SPDR S&P Homebuilders ETF (XHB) had fallen 26.5%.
Lowe’s Stock Rose after Its Q4 Earnings
Lowe’s (LOW) posted its fourth-quarter earnings on February 27. The company posted an adjusted EPS of $0.80 on revenues of $15.65 billion.
Is Bill Ackman’s Conviction in Lowe’s Stock Coming True?
At the end of the fourth quarter, Lowe’s was Pershing Square’s second-largest holding. Lowe’s formed 14.8% of Pershing Square’s portfolio.
Home Depot’s Stock Fell Due to Weaker Outlook
Home Depot (HD) posted its fourth-quarter results on February 26. For the quarter ending on February 3, the company posted an EPS of $2.09.
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?
Lowe’s has started 2019 on a positive note, with its stock rising 1.7% YTD as of January 16.
Bank of America Expects the Markets to Fall in 2019
Bank of America’s equity and quantitative strategist, Savita Subramanian, expects a decline in the S&P 500 (SPY) in 2019—compared to 2018.
Could Home Depot Turn Around this Year?
Last year was tough for home improvement retailers, including Home Depot (HD), whose stock price fell 9.3%.
Bed Bath & Beyond’s Stock Rose on Optimistic Outlook
Bed Bath & Beyond (BBBY) posted its third-quarter earnings after the market closed on January 9.
Upward Momentum in Home Depot and Lowe’s Stocks?
So far, 2018 has been tough for home improvement retailers. The SPDR S&P Homebuilders ETF (XHB) has fallen 29% YTD (year-to-date).
RH Tops Analysts’ Revenue and EPS Expectations in Q3 2018
RH (RH) posted its third-quarter earnings results after the market closed on December 3.
Lowe’s Stock: Can We Expect Upside Potential?
As of November 28, Lowe’s was trading at $93.69—a rise of 2.6% since the announcement of its third-quarter earnings on November 20.
Will RH’s Third-Quarter Earnings Boost Its Stock Price?
RH (RH) is scheduled to post its third-quarter earnings results after the market closes on December 4.
Bank of America’s Suggestions for Investors in a Market Decline
In a note published last week, Bank of America Merrill Lynch equity and quantitative strategist Savita Subramanian said, “We believe the peak in equities is likely before the end of 2019.”
Has Home Depot Stock Bottomed Out?
On November 26, Home Depot was trading at $168.85, a fall of 5.7% since its announcement of its fiscal 2018 third-quarter earnings results.
Williams-Sonoma Stock Tanks on Weak Q3 Comp Brand Revenue Growth
Williams-Sonoma (WSM) posted its earnings results for the third quarter of fiscal 2018 after the market closed on November 15.
Why Home Depot’s Q3 Earnings Failed to Impress Analysts
Home Depot (HD) posted its fiscal 2018 third-quarter earnings results before the market opened on November 13.
Can Williams-Sonoma Maintain Upward Momentum in Q3?
Williams-Sonoma (WSM) is scheduled to post it third-quarter earnings after the market closes on November 15.
Nasdaq Flirts with Down 10%…in October
So this is painful. Very few were perfectly positioned into this selloff.
Lowe’s Stock Price Fell on Credit Suisse Downgrade
After Credit Suisse’s downgrade on October 17, Lowe’s Companies’ (LOW) stock price fell to a low of $101.39 before closing the day at $102.44.
Has RH Stock Bottomed Out?
As of September 27, RH (RH) was trading at $132.99, which represents a fall of 12.1% since its fiscal Q2 2018 earnings release on September 4.
Did Lowe’s Meet Analysts’ Expectations in Q2 2018?
Lowe’s Companies (LOW) posted its second-quarter earnings before the market opened on August 22.
Will Home Depot’s Q2 2018 Earnings Boost Its Stock Price?
Home Depot (HD) is scheduled to post its second-quarter earnings before the market opens on August 14.
Why Did RH Stock Decline on July 11?
On June 11, RH stock declined ~4.4%, while Williams-Sonoma and Bed Bath & Beyond’s stock prices declined 1.8% and 2.1%, respectively.
Bed Bath & Beyond Stock Plunges in After-Hours Trading
Bed Bath & Beyond (BBBY) posted its first-quarter earnings after the market closed on June 27.
Could New Home Sales Continue to Rise?
The US Census Bureau and Department of Housing and Urban Development report monthly data on the number of new homes sold in the United States.
Are Rising Rates Affecting Housing Markets?
Rising interest rates increase the cost of owning a home for prospective buyers, but the housing market hasn’t yet felt the impact of rate increases.
What to Make of the Increase in Consumer Expectations in May
The May LEI reported the average consumer expectations for business conditions of 0.83, a strong rebound from the revised April reading of 0.55.
What Drove the Leading Economic Index Higher in May?
According to the June 21 Conference Board report, the May LEI was 109.5—a 0.2% increase from the revised April LEI of 109.3.
How Much Upside Could be Left in Williams-Sonoma Stock?
In this series, we’ll look at analysts’ revenue and EPS estimates for Williams-Sonoma over the next four quarters, as well as the company’s guidance and valuation.
What Drove Retail Sales Higher in May?
The United States Census Bureau releases a monthly report on retail sales in the United States. Let’s take a look at the latest data.
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.
April Jobs Report: More Jobs Than Job Seekers
April’s JOLTS data indicate that there were only 0.9 job seekers for every job available.
Are Tax Cuts Helping US Consumers Spend More?
On May 31, the BEA’s report on personal income and spending for April indicated that personal income rose 0.3%.
Will the Rollback of Dodd-Frank Help the Real Estate Sector?
In a continued effort to deregulate the economy, President Donald Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act.
Why the Fall in April New Home Sales Isn’t a Reason to Worry
As per the recent report, new single-family homes (XHB) sold in April were at a seasonally adjusted rate of 662,000 units.
Should Housing Investors Worry about Declining Building Permits?
An increase in the number of building permits in any given month is a signal for increased activity in the housing sector (DHI) in the future.
What to Make of the Decline of Consumer Expectations in April
The Conference Board Leading Economic Index (or LEI) has ten constituent indicators and all but one of these forward-looking indicators is based on expectations.
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.
Why Drove the Leading Economic Index Higher in April?
The latest Conference Board LEI reading was released on May 17. The LEI for April came in at 109.4, an increase of 0.4% from the March reading of 109.0.
How April’s Inflation Data Relieved Markets
On May 10, the Bureau of Labor Statistics reported that US consumer prices rose 0.2% in April.
Could Home Depot’s 1Q18 Earnings Boost Its Stock?
Home Depot (HD) is set to announce its 1Q18 earnings before the market opens on May 15.
What to Make of the March Increase in Building Permits Issued
The US Census Bureau and Department of Housing and Urban Development report monthly data on building permits issued in the United States.
Why a Rebound in March Housing Starts Isn’t Satisfying the Sector
The volatility in housing starts data remains elevated. Housing starts in March were reported to have risen 1.9%.
Why American Builders’ Confidence Fell 1 Point in March
The HMI (housing market index) was reported to have decreased by one point to 69 in April 2018.
What Drove the Leading Economic Index Higher in March?
In this series, we’ll analyze the Leading Economic Index and assess whether the economic model signals any changes to the US business cycle.
3.2 Million Americans Quit Their Jobs in February
The “Job Openings and Labor Turnover Survey” (or JOLTS) data for February was reported on April 13, and it contains information about job openings and total separations.
Why March’s Inflation Numbers Could Pressure the Fed
The US Bureau of Labor Statistics has reported that US consumer prices fell 0.1% in March.
Has Home Depot’s Stock Price Bottomed Out?
On March 27, 2018, Home Depot was trading at $174.68, a fall of 6.6% since its announcement of its 4Q17 earnings on February 20, 2018.
What to Make of the Drop in Building Permits Issued in February
The decrease in building permits spanned across the sectors in February.
What’s behind the 7% Fall in February Housing Starts?
Just as markets were celebrating the stellar 9.7% increase in housing starts in January, the February data proved to be a damper for that enthusiasm.
How Confident Are American Builders?
The March housing market index reading is at 70, a one-point decline from the revised February reading of 71.
Why the US Workforce’s Quit Rate Has Remained High
January’s JOLTS (Job Openings and Labor Turnover Survey) data, which contains information about job openings and total separations, was reported on March 16.
Which Countries and Industries Could Be Affected by the Tariffs?
Canada, the European Union, South Korea, Mexico, and Brazil are the largest exporters of steel and aluminum to the United States.
Why Lowe’s 4Q17 Earnings Failed to Impress Investors
Lowe’s (LOW) announced its 4Q17 earnings on February 28, 2018, reporting adjusted EPS of $0.74 on revenues of $15.5 billion.
Why the Rebound in Building Permits Is Positive for the US Economy
The Conference Board uses the number of building permits issued as one of the key constituents of its LEI (Leading Economic Index) model.
Why This Leading Economic Index Signals a Bright Outlook for US Economy
According to the latest report, the LEI for January was 108.1, which marks an improvement of 1.0% from the revised December index reading of 107.0.
Why the Fed’s Rate Hikes Are behind Schedule
Nominal GDP indicates higher rates The recently released second estimate for 4Q17 GDP indicates that the US economy grew 2.5%, a percentage point lower than the advance estimate of 2.6% and considerably lower than the 3Q17 growth of 3.2%. The nominal GDP growth rate, which is the real growth rate plus inflation (TIP), was 4.9%. The nominal […]
Could the Lower 4Q17 GDP Estimate be Reason to Worry?
The US Bureau of Economic Analysis (or BEA) has released its second 4Q17 GDP estimate, projecting that the US economy increased at an annual rate of 2.5%.
How the FOMC Views the US Financial Situation
The FOMC staff review indicated that the US investor sentiment has improved in the inter-meeting period.
Why American Homebuilders Are Confident about Industry
February’s HMI reading was reported at 72, unchanged from the January reading and two points below the 18-year peak reported in December.
Analyzing the Retail Sales Drop in January
The advance estimates for US retail (XRT) and food services in January 2018 were $492 billion—a decrease of 0.3% from December.
Why Quit Rate Indicates a Strong US Employment Market
As per the latest JOLTS report, total separations for December were 5.2 million, which is 3.6% of the total workforce.
Why Building Permits Plateaued in December
The Conference Board uses the number of building permits issued as one of the constituents of its LEI (Leading Economic Index) model.
What’s the Leading Economic Index Signaling for 2018?
The LEI is a monthly economic series that tracks the changes in economic performances. It has been successful in predicting changes in business cycles.
Personal Income in US Rose in 2017
As per the latest report from the BEA, personal income rose 0.4% in December, which took the annual rise to 4.1%.
Why Building Permits Didn’t Change in December
For 2017, 1,263,400 housing units have been authorized by building permits—a 4.7% increase from 1,206,600 housing units in 2016.
How Confident Are Homebuilders at the Beginning of 2018?
Comments from NAHB members indicated that homebuilders are optimistic about the future demand and projected increased activity in the housing sector.
Why Did the Consumer Price Index Rise in December?
According to the December CPI report released by the U.S. Bureau of Labor Statistics on January 12, consumer prices in December increased 0.1%.
How Many Americans Quit Their Jobs in November?
As per the latest JOLTS report, about 3.2 million American workers quit their jobs voluntarily in November.
Large Speculator Positions on the S&P 500 Index in Week Ended December 29
The S&P 500 Index (SPY) posted a weekly loss in the last week of 2017 but closed the year at a high.
Building Permits Fall in November: Should We Worry?
Building permits and the economy The number of building permits issued each month is a constituent of the Conference Board LEI (Leading Economic Index). The construction and housing industry (PKB) is a major job provider in the economy, and changes in activity in the sector affect employment conditions and aggregate demand. A higher number of building permits is a leading […]
Should We Worry about Rising Unemployment Claims?
Average weekly claims and the economy Average weekly unemployment claims are a constituent of the Conference Board LEI (Leading Economic Index). Claims have a 3% weight in the LEI. Weekly unemployment claims, if adjusted for seasonality, give investors a clear understanding of changes in the employment market. Though the Bureau of Labor Statistics releases a monthly […]
What the Leading Economic Index Signals for the US Economy
The Conference Board LEI (Leading Economic Index), a closely followed economic indicator in the investor community, tracks the US economy’s health.
Housing Market: Builders’ Confidence Reaches an 18-Year High
For November, the NAHB Housing Market Index was reported as 74—an increase of five from October and an 18-year high.
Should Investors Be Concerned about Fewer Building Permits?
In November 2017, housing units (XHB) authorized by building permits were at a seasonally adjusted rate of 1.298 million—a decrease of 1.4% from October.
How Much Upside Is Left in Home Depot Stock?
Rumors that Home Depot (HD) might acquire XPO Logistics (XPO) didn’t have much impact on HD stock. However, XPO stock rose 14.4% on December 22, 2017.
What’s Driving Lowe’s Stock Price?
As of December 14, 2017, Lowe’s was trading at $85.58, which represents a rise of 5.1% since the announcement of its 3Q17 earnings on November 21, 2017.
How Large Speculator Positions in S&P 500 Index Trended Last Week
The S&P 500 Index continued its ascent in the previous week buoyed by the optimism surrounding US tax reform.
Why RH Stock Rose in 3Q17
RH, previously known as Restoration Hardware, on December 5, 2017, reported adjusted EPS (earnings per share) of $1.04 on revenues of $592.5 million.
Why a Rise in October Building Permits Is a Good Sign for the US Economy
In October 2017, the number of building permits totaled ~1.3 million permits, a sizeable increase from the September reading of ~1.2 million permits.
The Conference Board Leading Economic Index and Why We Track It
The October 2017 reading for the Conference Board LEI was released on November 20. The LEI rose 2.9% in the six-month period ended in October 2017.
The FOMC’s View on the US Economy
At the November meeting, the FOMC staff review indicated that US labor market conditions continued to strengthen and that the US economy continued to expand at a solid pace.
Why Lowe’s 3Q17 Earnings Failed to Impress
Lowe’s Companies (LOW) posted its 3Q17 earnings on November 21. The company posted adjusted EPS (earnings per share) of $1.05 on revenues of $16.77 billion.
Analyzing Housing Starts in October 2017
In October 2017, housing starts rebounded sharply from the slump in September. October housing starts beat the market’s expectations.
Why We Need to Track the Conference Board Leading Economic Index
The main reason for the popularity of the Conference Board Leading Economic Index is its successful track record when predicting changes to the business cycle.
The Truth about Housing Starts in September 2017
In September 2017, US housing starts fell from an upwardly revised August number of 1.183 million to 1.127 million units—a negative surprise.
How FOMC Members Assessed the US Labor Market in September
FOMC members noted that labor market conditions could take a hit due to the hurricanes in August and that this was evident in the October non-farm payrolls report.
Home Depot’s Financial Engineering Boosts Returns Metrics
Besides the upbeat earnings, Home Depot (HD) also significantly increased its returns metrics.