Almost everyone in the financial media has been talking about the yield on the 10-year U.S. Treasury Note. When the yield moves higher the home-builder stocks, real estate investment trusts (REITs), and the utility sector will usually suffer. All of these important sectors are very sensitive to higher interest rates.
Today, the leading home-builder stocks such as Lennar Corp (NYSE:LEN), Toll Brothers Inc (NYSE:TOL), DR Horton Inc (NYSE:DHI), and PulteGroup, Inc (NYSE:PHM) are all trading higher as yields have pulled back from the near term highs made last week. Day traders that are following LEN stock should watch for intra-day resistance around the $35.76, and 36.43 levels.