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☆ Homebuilder Lennar beats profit estimates on strong property prices
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Homebuilder Lennar Corp (LEN.N) on Tuesday reported a better-than-expected quarterly profit as high property prices helped offset supply shortages caused by rising material costs and a labor crunch. However, the industry is now staring at a slowdown as high interest rates have made borrowing more difficult for potential buyers. "Our sales volume and pricing have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and there is still demand," Lennar Executive Chairman Stuart Miller said in a statement. Lennar reported net earnings per diluted share, excluding items, of $2.12 per share, above analysts' average estimate of $1.55 per share, according to Refinitiv data. Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Stock futures are flat following Tuesday's bank stock comeback: Live updates
▼ + stars: | 2023-03-14 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, October 7, 2022. Stock futures were flat in overnight trading after Tuesday's comeback rally in bank shares. Futures tied to the Dow Jones Industrial Average dipped 30 points, while S&P 500 futures and Nasdaq 100 futures traded flat. First Republic and other banking shares rose in overnight trading, building on Tuesday's recovery, while shares of homebuilder Lennar added 3% on positive earnings results. Financials got a 2.2% boost, thanks to a comeback in banking stocks as investors bet on the sector's resilience despite the collapse of Silicon Valley Bank and Signature Bank.

HONG KONG, March 13 (Reuters) - Top Chinese property developer Country Garden Holdings (2007.HK) said on Monday it expected to post its first net loss since listing in 2007 due to a sluggish property market and flagged a worse-than-feared drop in core profit. Country Garden said in a filing its estimated net loss would be between 5.5 billion yuan to 7.5 billion yuan ($799 million to $1.09 billion), down from a 26.8 billion yuan profit in 2021. It said core net profit was expected to be in the range of 1 billion yuan to 3 billion yuan, still positive but down sharply from 26.9 billion yuan in 2021 and well below analysts' forecasts for core profit around 9.3 billion yuan, according to SmartEstimate. Smaller developer Logan Group Co Ltd 3380.HK also said it expected to record a net loss of 7 billion yuan to 9 billion yuan for 2022. "We expect to see more profit warnings for both China property and property management ahead," said Raymond Cheng, head of China research at CGS-CIMB Securities Ltd.

☆ Hightower's Stephanie Link sells Occidental Petroleum, says there are 'better places' in energy
▼ + stars: | 2023-03-07 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

It's time to take some profits from what was one of the best-performing energy stocks last year, according to investor Stephanie Link. The chief investment strategist and portfolio manager at Hightower said she sold shares of Occidental Petroleum , which outperformed last year on the back of rising oil prices. Occidental shares posted a return of 119% in 2022. Schlumberger shares are more than 1% higher in 2023. Another name the investor sold was D.R.

☆ Stocks making the biggest premarket moves: Ferrari, Apple, KB Home and more
▼ + stars: | 2023-03-06 | by ( Michelle Fox | ) www.cnbc.com time to read: +1 min

In a note to clients, Jonas cited Ferrari's backlog and pricing power as reasons to raise his price target on the stock by more than 10%. Apple — The iPhone maker advanced 2% premarket after Goldman Sachs initiated coverage with a buy rating, saying Apple could get a big boost from its services business. The Wall Street bank's 12-month price target of $199 implies Apple could rally more than 30% from here. KB Home — The homebuilder slipped 1.4% following a double downgrade to underweight from overweight by JPMorgan. Horton, another homebuilder, fell a little more than 1% after it was downgraded by JPMorgan to neutral from overweight.

☆ JPMorgan double downgrades KB Home to underweight, says valuation is too high
▼ + stars: | 2023-03-06 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

KB Home 's valuation is too high given its expected future performance, JPMorgan warned. Rehaut cut his price target by $3.50 to $32.50, which implies the stock will fall 9.1% from Friday's close. Rehaut noted it's also expensive given that KB Home is expected to trail those smaller-cap competitors on gross margins, operating margins and return on equity. "We view its valuation ... as expensive relative to our outlook for below average gross margins, operating margins and ROE," he said in a Monday note to clients. Rehaut noted the stock could perform better than expected if it sees stronger-than-expected pricing or easing inflation, which could both help gross margins.

☆ UK construction sector rebounds in February - PMI
▼ + stars: | 2023-03-06 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

The S&P Global/CIPS UK Purchasing Managers' Index (PMI) for the construction sector jumped to 54.6 in February, up from 48.4 in January, its highest since May 2022 and well above economists' average expectation of 49.1 in a Reuters poll. The sharp rebound mirrors a similar increase in Friday's services PMI, which grew at its fastest pace in June, easing many analysts' concerns that Britain's economy was slipping into recession. However, Tim Moore, economics director at S&P Global, said cutbacks in new house building projects remained a weak spot for activity in the construction sector. The house-building industry was the worst-performing construction sector as residential building work fell for the third month in a row. The wider all-sector PMI, which includes previously released services and manufacturing data, rose to its highest since last July at 53.2 for February, up from January's 48.5.

☆ What's a mortgage rate buydown? 3 things you need to know to avoid 'lighting money on fire'
▼ + stars: | 2023-03-05 | by ( Jason Stauffer | Elizabeth Gravier | ) www.cnbc.com time to read: +11 min

How does a mortgage rate buydown work? The terms are sometimes used interchangeably, so it's important to understand how your individual mortgage lender is defining the buydown. When you pay for discount or mortgage points, you permanently lower your mortgage's interest rate (as opposed to buydowns which only temporarily lower the rate). So it may make less sense for these types of borrowers to pay for a lower rate. You'll want to pay attention to your mortgage's closing costs because the fees you pay can wipeout the potential savings from securing a lower mortgage rate.

☆ Morning Bid: Markets March on China boomlet
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +5 min

And after a bruising setback for stocks and bonds in February, investors now have to assess whether the unfolding economic rebound is sustainable given the eye-watering revision that it's forcing in inflation and interest rate expectations. This is emboldening both the hawks at the European Central Bank and markets keen to re-price the interest rate horizon. Money markets have already moved beyond that and now price peak ECB rates at year-end almost 150 bps higher at 3.90%. Even though U.S. consumer confidence and housing data on Tuesday questioned some of the reheating narrative, markets now assume peak Federal Reserve rates will be as high as 5.42% by July. And homebuilder Persimmon (PSN.L) dropped almost 10% after it warned the housing slowdown and higher mortgage rates would hit profit and home-building targets.

☆ People who moved to Tennessee for cheaper homes and a laid-back life say they're happy — for the most part
▼ + stars: | 2023-02-26 | by ( Jordan Pandy | ) www.businessinsider.com time to read: +10 min

The 50-year Florida resident decided to pack up and move to Memphis, Tennessee, for a more manageable mortgage payment while on a fixed income. Foster said clients have recently moved to Tennessee from New York, New Jersey, and California. He traded snowy Buffalo for the ease of southern livingMichael and Danielle Ekstrum moved to Tennessee after becoming empty nesters in 2018. A retiree fed up with California's overcrowding bought a home in Tennessee without thinking twiceMichael and Bonnie Tyler moved from Sacramento, California, to Jonesborough, a historic town in eastern Tennessee. "There's too much traffic, too many people, it's way too expensive, and there's no water," Tyler told Insider.

☆ All investors need a worldview. Here's mine and how to think about developing your own
▼ + stars: | 2023-02-26 | by ( Jim Cramer | ) www.cnbc.com time to read: +23 min

You need to know what you think will happen and then you can insert stocks into that worldview. I think this view, which Jay cares and is most likely going to get it right, is fundamental to my worldview. I think that's an absurd tradeoff and those who are making it, those who own 10-year Treasurys, are sorely ill-advised. Fortunately, I don't think the Fed has to go that far to break the trio. The companies you think might not make it I think aren't going to make it because they won't be able to raise cash.

Palo Alto Networks' forecast for fiscal third-quarter adjusted earnings also beat expectations. Coinbase - Shares of the cryptocurrency exchange rose more than 1% after Coinbase reported a smaller-than-expected loss for the fourth quarter. Toll Brothers — Shares of the homebuilder rose more than 2% on the back of better-than-expected fiscal first-quarter results. The company reported consolidated revenue of $1.31 billion, a 6% decrease compared to the prior year quarter, and earnings per share of $1.35. Analysts served by StreetAccount had expected a $1.3 billion in revenue and earnings per share of $1.19.

☆ U.S. single-family housing starts, building permits tumble in January
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +3 min

Single-family housing starts, which account for the bulk of homebuilding, dropped 4.3% to a seasonally adjusted annual rate of 841,000 units last month, the Commerce Department said on Thursday. Single-family homebuilding tumbled 27.3% on a year-on-year basis in January. Last month, single-family homebuilding plunged in the Northeast and West, with the latter likely depressed by flooding in California. Single-family building permits dropped 1.8% to a rate of 718,000 units, while those for housing projects with five units or more rose 0.5% to a rate of 563,000 units. The inventory of single-family housing under construction fell 1.1% to a rate of 752,000 units.

☆ Homebuilder stocks strong, in spite of concern over the economy
▼ + stars: | 2023-02-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHomebuilder stocks strong, in spite of concern over the economyThe committee discusses homebuilder stocks, which have had a good year. With CNBC's Scott Wapner and the 'Halftime Report' investment committee, Requisite Capital's Bryn Talkington, Virtus Investment Partners' Joe Terranova, Odyssey Capital Advisors' Jason Snipe and NewEdge Wealth's Rob Sechan.

☆ The economy is going to be better than expected, says Smead Capital Management's Bill Smead
▼ + stars: | 2023-02-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe economy is going to be better than expected, says Smead Capital Management's Bill SmeadBill Smead of Smead Capital Management joins 'The Exchange' to discuss the economy and the homebuilder trade. He's been bullish on the homebuilders for nearly a decade.

☆ Homebuilder sentiment in February improved by the biggest amount in a decade
▼ + stars: | 2023-02-15 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

America's homebuilders are growing more bullish as buyer demand picks up, driven in part by slightly lower mortgage rates. Homebuilder confidence in the market for newly built single-family homes in February rose seven points to 42, according to the National Association of Home Builders/Wells Fargo Housing Market Index. This is the highest reading since September and the largest monthly gain since June 2013. The index stood at 81 in February of last year, before mortgage rates began to rise. Builders say affordability is improving, as mortgage rates fall back from their highs of last fall and start to settle in a narrow range.

☆ Mortgage rates move higher, along with homebuilder sentiment
▼ + stars: | 2023-02-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMortgage rates move higher, along with homebuilder sentimentCNBC's Diana Olick joins 'The Exchange' to report on mortgage rates and rising homebuilder sentiment.

☆ Here's what's happening with home prices as mortgage rates fall
▼ + stars: | 2023-02-10 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +4 min

According to two separate indices existing home prices rose to the highest level in 6 years. Joe Raedle | Getty ImagesThe U.S. housing market cooled off pretty dramatically last year, after mortgage rates more than doubled from historic lows. Now, as demand appears to be coming back into the market, due to a slight drop in mortgage rates, prices are pushing back. But mortgage rates began to fall in December, and prices reacted immediately. Lower mortgage rates are driving the new demand.

☆ The Phoenix housing bubble spectacularly popped in 2008. Countless signs point towards a similar struggle now. Here's how bad it really is.
▼ + stars: | 2023-02-05 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +9 min

Phoenix's housing market is quickly deteriorating as a pullback in demand triggers home price declines. And as Phoenix's housing market performs an about-face from the dramatic rise it had witnessed from spring 2020 through summer 2022, experts across the country are debating the possibility of the whole market imploding. And as of January 2023, area home sales are down 74% year-over-year, according to John Burns Real Estate Consulting. The Phoenix Valley — a sprawling desert metropolis that's home to nearly 5 million people — is no stranger to speculative real estate bubbles. Phoenix's housing market could be on track to normalizingDespite the numerous indicators of a weakening housing market, Phoenix may simply be facing a correction versus a crash, several experts told Insider.

☆ A 24-year-old homebuyer whose builder paid for a lower mortgage interest rate said it was what he needed to purchase his first home
▼ + stars: | 2023-02-03 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +5 min

During the first year of his loan, Ogata will have an interest rate of 6.1% for a 30-year-fixed mortgage rate. Once the year is completed, his interest rate will climb to 7.1%. A study from John Burns Real Estate Consulting shows that as of December, 75% of US homebuilders were offering mortgage rate buydowns. "The biggest thing that triggered it was when interest rates unprecedentedly doubled in a very short amount of time," Todd told Insider. Needing a way to address the decline in affordability, Todd says a mortgage rate buydown program was naturally the best tool in their deck.

☆ Affordability constraints continue to deter first-time home buyers, says Fannie Mae's Doug Duncan
▼ + stars: | 2023-02-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAffordability constraints continue to deter first-time home buyers, says Fannie Mae's Doug DuncanCNBC's Diana Olick and Fannie Mae's Chief Economist Doug Duncan join 'Power Lunch' to discuss the potential for a housing comeback, housing sector recession forecasts, and homebuilder stocks rallying this week.

☆ Mortgage rates drop to the 5% range for the first time since September
▼ + stars: | 2023-02-02 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

The average rate on the 30-year fixed rate mortgage has fallen to 5.99%, according to Mortgage News Daily. That sent bond yields higher, and mortgage rates follow loosely the yield on the 10-year Treasury. Mortgage rates peaked in October with the 30-year fixed at 7.37% and have been sliding since then. Stocks of the nation's homebuilders have been on a tear since rates started to fall back and several are seeing 52-week highs today. Both builders reported seeing renewed buyer interest in December, attributing that to lower mortgage rates.

☆ Homebuilder PulteGroup's quarterly profit beats estimates on higher house prices
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +1 min

Jan 31 (Reuters) - U.S. homebuilder PulteGroup Inc (PHM.N) on Tuesday beat Wall Street estimates for quarterly profit on the back of higher house prices in a tightening market. Higher prices have helped U.S. homebuilders offset the impact from rising prices of commodities, labor shortages and ongoing supply chain disruptions over the past year. Pulte's sales rose nearly 19% to $5.17 billion for its fourth quarter ended December 31, 2022. The homebuilder's quarterly net income rose to $882 million, or $3.85 per share from $663 million, or $2.61 per share, a year earlier. Analysts, on average, had expected PulteGroup's quarterly net income to be $2.93 per share on a revenue of $4.59 billion, according to Refinitiv.

☆ Stocks making the biggest moves midday: GM, McDonald's, UPS, Pulte, International Paper and more
▼ + stars: | 2023-01-31 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

The company reported an adjusted $2.12 per share on $43.11 billion in revenue. Analysts surveyed by Refinitiv were looking for $1.69 in earnings per share on $40.65 billion in revenue. Smith — Shares skyrocketed 13.7% after the manufacturing company reported earnings of $0.86 per share, beating consensus estimates. UPS also raised its dividend and sanctioned a new $5 billion stock repurchase plan. Pentair — Shares of Pentair surged 9.2% after the water treatment company reported earnings that topped Wall Street estimates for earnings and revenue.

☆ Stocks making the biggest moves premarket: McDonald's, UPS, General Motors and more
▼ + stars: | 2023-01-31 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

The company reported an adjusted $2.12 per share on $43.11 billion in revenue. United Parcel Service – Shares of UPS rose 1.9% after the company reported earnings that beat analyst expectations. The company reported earnings of $3.86 per share, well below a Refinitiv consensus estimate of $4.06 per share. The company reported $3.63 in adjusted earnings per share on $5.17 billion of revenue. Wall Street analysts were expected $2.93 in earnings per share on $4.58 billion of revenue, according to StreetAccount.

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