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iShares U.S. Home Construction ETF (ITB)

  • Wed, Nov. 11, 12:31 PM
    • Yesterday's earnings beat and big move higher from D.R. Horton (NYSE:DHI) spread through the entire sector, and today is seeing plenty of follow-through, with DHI up another 3.2%.
    • Reporting on the UBS conference today, the WSJ's Kris Hudson says Toll Brothers CEO Doug Yearly sounds coy about the upcoming spring selling period, telling attendees he's not pessimistic, but doesn't yet see an impetus pointing to a great season.
    • Of supposed slowing of international buying on the West Coast: "We haven't yet personally seen any negative impact."
    • ITB +1.75%, XHB +0.9%
    • Hovnanian (HOV +5.6%), PulteGroup (PHM +1.3%), Lennar (LEN +2.3%), KB Home (KBH +2.5%), Beazer (BZH +5.9%)
    • Previously: More on D.R. Horton's FQ4 beat (Nov. 10)
    | Wed, Nov. 11, 12:31 PM | 10 Comments
  • Tue, Nov. 10, 12:15 PM
    • D.R. Horton is up 6.8% after cruising through FQ4 estimates, with orders, backlogs, and closings all up smartly, but prices up only modestly. Pre-tax margin gained 60 basis points to 10.7%, and the company boosted its quarterly dividend by two pennies to $0.08 per share (1% yield).
    • Bears might note the beat was helped along by a $17.5M benefit from the company's DTA, but the bulls control the tape today.
    • With the major averages in the red, the homebuilder ETF is up sharply, ITB +1.4%. More focused on industry suppliers, the XHB is up 0.4%.
    • Toll Brothers (TOL +1.7%), PulteGroup (PHM +2.4%), Lennar (LEN +1.5%), Ryland (RYL), KB Home (KBH +2.3%), Hovnanian (HOV -0.8%).
    • Previously: More on D.R. Horton's FQ4 beat (Nov. 10)
    • Previously: D. R. Horton beats by $0.02, beats on revenue (Nov. 10)
    | Tue, Nov. 10, 12:15 PM | 1 Comment
  • Mon, Oct. 26, 10:11 AM
    • The pace of new home sales tumbled to a seasonally-adjusted annualized rate of 468K in September. That's down 11.5% from August's 529K (revised down from 552K), and just 2% above the level of a year ago. Analysts had expected a 550K pace in September.
    • The Northeast suffered an unusually large decline, with sales dropping to 13K from 34K ... must have been the weather. Sales in the Midwest fell to 55K from 60K; South to 274K from 300K; West to 126K from 135K.
    • Maybe a bigger issue are prices: The median price of 296.9K was 13.5% higher than a year ago.
    • The homebuilders aren't liking the news: Toll Brothers (TOL -2%), Lennar (LEN -1.6%), Hovnanian (HOV -1.8%), KB Home (KBH -2.2%), D.R. Horton (DHI -2.5%), PulteGroup (PHM -1.4%)
    • ITB -1.6%, XHB -0.7%
    • Full report
    • Previously: New Home Sales hits 10-month low at 468K (Oct. 26)
    | Mon, Oct. 26, 10:11 AM | 14 Comments
  • Thu, Oct. 22, 12:03 PM
    • The major averages are up 1.5%, and a strong existing home sales number this morning added to a beat in housing starts earlier this week, but the homebuilders are retreating.
    • At work are weaker-than-hoped reports from PulteGroup (PHM -6.4%) and M/I Homes (MHO -5.7%).
    • Pulte reported a decline in closings, with ASPs up just a hair vs. the 8% gain in sales prices a year ago. Home sales in Texas slumped 15%, and while net new orders for the company overall rose 8%, they fell 5% in that state.
    • KB Home (KBH -4.3%), Toll Brothers (TOL -1%), Lennar (LEN -0.6%), Hovnanian (HOV +1.6%), D.R. Horton (DHI -1.2%)
    • ETFs: ITB, XHB
    • Previously: Sale price gains slow down at Pulte (Oct. 22)
    • Previously: M/I Homes misses by $0.04, misses on revenue (Oct. 22)
    | Thu, Oct. 22, 12:03 PM | 3 Comments
  • Thu, Sep. 24, 10:15 AM
    • SIngle-family new home sales in August at a seasonally-adjusted annualized rate of 552K were up 5.7% from July (itself upwardly revised to 522K from 505K). August's pace was also up 21.6% from a year ago.
    • By region, Northeast sales of 36K rose from 29K, Midwest to 60K vs. 66K, South 319K from 297K, and West 137K vs. 130K.
    • Despite the strong August results, homebuilders remain lower alongside the broader market.
    • Leading the way lower is KB Home (KBH -3.4%) which reported an earnings beat this morning, but rising land costs did eat into profit margins.
    • ETFs: ITB, XHB
    • Toll Brothers (TOL -0.4%), PulteGroup (PHM -0.8%), Lennar (LEN -0.9%), D.R. Horton (DHI -0.8%), Standard Pacific (SPF -1.6%), Taylor Morrison (TMHC -1.5%).
    | Thu, Sep. 24, 10:15 AM | 3 Comments
  • Thu, Sep. 17, 3:49 PM
    • Outperforming alongside the big dividend payers are the homebuilders after the FOMC refrained from hiking rates today, but still all but promises tighter policy before the year is out. The big gains in homebuilders are in contrast to the S&P 500 which is flat.
    • The inaction has sparked a major rally in bonds across the curve, with the 10-year yield lower by ten basis points to 2.20% and the two-year yield down a full twelve basis points to 0.68%.
    • Earlier today, August housing starts disappointed, and July starts were revised sharply lower.
    • Previously: August housing starts disappoint; July revised sharply lower (Sept. 17)
    • Toll Brothers (TOL +1.2%), Lennar (LEN +1.5%), Hovnanian (HOV +6%), PulteGroup (PHM +1.1%), Ryland (RYL +2.1%), D.R. Horton (DHI +2%), KB Home (KBH +2%)
    • ETFs: ITB, XHB
    | Thu, Sep. 17, 3:49 PM | 4 Comments
  • Tue, Aug. 18, 8:47 AM
    • July housing starts of 1.206M edged up from the revised June estimate and were 10.1% above the rate of one year ago. Expectations had been for 1.19M.
    • Single-family housing starts were 782K, up 12.8% from the previous month.
    • The homebuilders put in a nice day yesterday following a rise in the NAHB builder confidence index, and the ITB is up another 1% in premarket action. The XHB is up 0.5%.
    • The 10-year Treasury yield is up one basis point at 2.18% TLT -0.4%, TBT +0.8%
    • Full report
    | Tue, Aug. 18, 8:47 AM | 18 Comments
  • Fri, Jul. 24, 10:10 AM
    • Sales of new single-family homes in June at a seasonally-adjusted annualized rate of 482K were 6.8% below the May pace of 517K and 18.1% above the number one year ago. The 482K print is the weakest since November 2014.
    • In a further bit of weakness, May's rate of 517K was originally estimated at 546K.
    • The median sales price of $281.8K slipped 1.8% from a year ago. The supply of new homes for sale was 5.4 months, up from 4.8 months in May.
    • Breaking down sales by region: Northeast 32K in June vs. 25K in May; Midwest 56K vs. 63K; South 282K vs. 294K; West 112K vs. 135K.
    • Treasury prices are snoozing through the news - the 10-year yield remains flat at 2.27%. TLT +0.1%
    • Homebuilders, however, are selling off, with the ITB -1.1%, and the XHB -0.5%.
    | Fri, Jul. 24, 10:10 AM | 6 Comments
  • Wed, Jul. 22, 10:36 AM
    • In the latest data point signaling the housing recovery has shifted into another gear, the NAR earlier reported a 3.2% gain in the seasonally adjusted annualized rate of existing home sales to 5.49M in June.
    • Sales are at their highest pace since February 2007 and are 9.6% above the pace of one year ago.
    • The median price of $236.4K is up 6.5% Y/Y and surpasses the peak set in July 2006.
    • ETFs: ITB +1.5%, XHB +1.5%
    • Toll Brothers (TOL +2%), Lennar (LEN +1.7%), KB Home (KBH +1.9%), Pulte (PHM +2.1%), D.R. Horton (DHI +2.1%), Hovnanian (HOV +0.9%), Ryland (RYL +3.1%)
    • Previously: Existing home sales rise to fastest pace in eight years (July 22)
    | Wed, Jul. 22, 10:36 AM | 17 Comments
  • Wed, Jun. 24, 9:47 AM
    | Wed, Jun. 24, 9:47 AM | 3 Comments
  • Tue, Jun. 23, 10:13 AM
    • In addition to May's strong print of 546K (up 19.5% Y/Y), April's pace of new home sales was revised up to 534K from 517K.
    • Sales in the Northeast of 30K were up from 16K in April. In the Midwest, 66K vs. 70K; South 312K vs. 326K; West 138K vs. 122K.
    • The iShares U.S. Home Construction ETF (ITB +0.4%), the SPDR S&P Homebuilders ETF (XHB +0.3%)
    • A longer-term chart of New Home Sales shows the level up sharply from the financial crisis, but only up to about levels seen in the early 1990s.
    • Previously: Continued strength in new home sales (June 23)
    | Tue, Jun. 23, 10:13 AM | 1 Comment
  • Fri, Jun. 19, 10:09 AM
    • KB Home CEO Jeffrey Mezger is confident of his company's ability to achieve "measurable year-over-year earnings growth in H2" after reporting new order growth of 33% in units and 38% in dollars in FQ2, and backlog growth of 39% in units and 57% in dollars.
    • KB Home is up 6%, leading the ITB +1.4%, and XHB +0.8% even as the major averages slip.
    • Toll Brothers (TOL +2.3%), Hovnanian (HOV +2.7%), Lennar (LEN +3%), Ryland (RYL +2%), D.R. Horton (DRI +2.5%), Pulte (PHM +2.5%)
    • Previously: KB Home gains following earnings beat (June 19)
    • Previously: KB Home beats by $0.02, beats on revenue (June 19)
    | Fri, Jun. 19, 10:09 AM | Comment!
  • Mon, Jun. 15, 8:25 AM
    • “We’re not going to have 22 publicly traded companies that are significant enough in size to have good liquidity," says John Burns, who heads a homebuilding research firm, predicting more consolidation in the industry.
    • Standard Pacific (NYSE:SPF) CEO Scott Stowell - who will be the chief of the combined company: “We’re out in front of what we think will be a wave of consolidation in our industry."
    • The two builders have little in the way of overlap, reports the WSJ, as each has its largest operations where the other doesn't, and Standard Pacific is an upscale homebuilder (ASP of $478K), while Ryland (NYSE:RYL) focuses on those of lower cost (ASP of $333K).
    • SPF +3% premarket
    • Investor presentation and conference call webcast
    • Previously: Homebuilders Standard Pacific, Ryland Group agree to merge (June 14)
    • ETFs: XHB, ITB
    | Mon, Jun. 15, 8:25 AM | 1 Comment
  • Tue, Jun. 9, 10:14 AM
    • The usually sunny Ara Hovnanian found himself unable to put lipstick on his company's pig of a quarter and the stock is lower by 14.4% in early action (the conference call begins at 11 ET).
    • Topping off the poor results, interest rates are back on the rise, with the 10-year Treasury yield hitting a new high for the year at 2.44%.
    • The other homebuilders are acting as if HOV's issues are company-specific: Toll Brothers (TOL -0.2%), Lennar (LEN -0.2%), PulteGroup (PHM -0.6%), D.R. Horton (DHI -0.2%), KB Home (KBH -0.8%), Ryland (RYL -0.6%), Standard Pacific (SPF flat).
    • ETFs: ITB -0.2%, XHB -0.3%
    | Tue, Jun. 9, 10:14 AM | 3 Comments
  • Wed, May 27, 10:43 AM
    | Wed, May 27, 10:43 AM | 1 Comment
  • Tue, May 19, 9:06 AM
    • April housing starts at a seasonally adjusted annualized rate of 1.14M were up 20% from March, and the strongest pace since the housing collapse began to pick up pace about eight years ago.
    • Lennar (NYSE:LEN+0.85%, PulteGroup (NYSE:PHM+1.15%, KB Home (NYSE:KBH+1.75%, Ryland (NYSE:RYL+0.2%, D.R. Horton (NYSE:DHI+1.4%, Hovnanian (NYSE:HOV+1.9% premarket.
    • ETFs: ITB, XHB
    • Previously: Housing starts jump in April (May 19)
    | Tue, May 19, 9:06 AM | Comment!
ITB Description
The iShares Dow Jones U.S. Home Construction Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Home Construction Index.
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