Five Signs That Housing Market Recovery Is Caving In

 

 

” The stocks rallying on good news is normal. Rallying on bad news means it’s climbing the proverbial wall of worry and looking ahead to better days. So what portends when it dives on good news? Run while you can still get out alive. Company news and earnings are always positive at height of the market and everyone thinks this time it’s different.

Such is the case with homebuilder shares. The former high-flying iShares Dow Jones US Home Construction (ITB) and SPDR S&P Homebuilders (XHB) led the losers list Thursday, collapsing 3.37% and 1.39% while the benchmark SPDR S&P 500 ETF (SPY) ticked higher 0.25%.

Shares caved in even though D.R. Horton (DHI), MI Homes (MHO), Meritage Homes(MTH) and Ryland (RYL) all eclipsed Wall Street earnings expectations when they reported Wednesday and Thursday. Only PulteGroup (PHM) missed views although earnings doubled and sales climbed a notable 20% year over year.”

 

 

 

 

 

 

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