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iShares U.S. Home Construction ETF (ITB)

  • Fri, Sep. 25, 7:21 AM
    | Fri, Sep. 25, 7:21 AM | Comment!
  • 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
  • Thu, Sep. 17, 8:45 AM
    • August housing starts at a seasonally adjusted annualized rate of 1.13M fell 3% from July's 1.16M. The July figure however, had originally been reported as 1.21M. On a year-over-year basis, August starts were up 16.6%.
    • Single-family starts in August of 739K were 3% lower than July's 762K.
    • A longer-term chart from Bill McBride shows single-family starts continuing on a path upward, but still just above levels typically associated with recessions.
    • Permits of 1.17M rose 3.5% from July and 12.5% from a year ago.
    • The 10-year Treasury yield remains lower by two basis points to 2.28%.
    • Full report
    • ETFs: ITB, XHB
    | Thu, Sep. 17, 8:45 AM | 2 Comments
  • Thu, Sep. 3, 3:12 PM
    • How bad a year has it been for multi-industry stocks? Year-to-date underperformance relative to the S&P 500 is among the poorest in a decade and has gotten worse in recent weeks, say Goldman analyst Joe Ritchie and team. The negative news is no secret: Broad industrial de-stock, softening oil capex, the strong dollar, and the troubles in China. Because of this, the team remains Neutral on the beaten-up sector, but does have a few names investors should steer clear of:
    • With de-stock keeping U.S. industrial growth in a "headlock," the implications are particularly negative for Sell-rated Emerson Electric (NYSE:EMR), WW Grainger (NYSE:GWW), and Neutral-rated Parker-Hannifin (NYSE:PH) and Rockwell Automation (NYSE:ROK).
    • With oil capex going from bad to worse, and oil lower for longer, the Street is underestimating the impact of price declines for Dover (NYSE:DOV), Emerson, and Flowserve (NYSE:FLS). On the flip side, lower input costs should be a boon to Buy-rated Illinois Tool Works (NYSE:ITW) and Neutral-rated 3M (NYSE:MMM).
    • The weaker China backdrop is most negative for Emerson, and Neutral-rated Eaton (NYSE:ETN) and Colfax (NYSE:CFX). Though Buy-rated Honeywell (NYSE:HON) and ITT Corp (NYSE:ITT) have exposure, growth is more insulated due to their market share gains.
    • Source: Barron's Ben Levinsohn
    | Thu, Sep. 3, 3:12 PM | 11 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 | 19 Comments
  • Wed, Jul. 29, 10:38 AM
    • Sales orders gained a fast 22% year-over-year in the quarter ended June 30, writes Kris Hudson, lower than some analysts had hoped, but still a strong number. Sequentially though, orders for D.R. Horton, PulteGroup (NYSE:PHM), M/I Homes (NYSE:MHO), and NVR all slowed, according to Housing ResearchCenter, though normal seasonality would call for an increase. Higher interest rates are likely to blame.
    • D.R. Horton's average sales price of $289K rose 2.9% Y/Y, keeping in place a pattern of low-single digit gains over the past year. It's not necessarily that builders are lowering prices, but the mix has changed, with D.R. Horton in particular building larger numbers of less-expensive homes. The company's Express brand of entry-level homes - started in 2013 - accounted for 19% of orders in the last quarter. Still the percentage of first-time homebuyers of 41% was flat Y/Y, and down from 44% two years ago.
    • Credit remains tough to come by, with the average FICO score of D.R. Horton-originated mortgages of 716 last quarter vs. 719 a year ago and 723 two years ago.
    • ETFs: ITB, XHB
    • Previously: D.R. Horton profit nearly doubles (July 28)
    | Wed, Jul. 29, 10:38 AM | 1 Comment
  • 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
  • Fri, Jul. 17, 8:53 AM
    • Overall June housing starts of 1.343M rose 9.8% from May's (revised-higher) figure and 26.6% from a year ago, with the much of the jump attributable to soaring multi-family starts (the highest since 1987).
    • SIngle-family housing starts in June of 685K were 0.9% lower than May's revised figure and 14.7% higher than a year ago.
    • Multi-family starts of 476K were up 28.6% from May.
    • Building permits of 1.34M were the highest in eight years.
    • The 10-year Treasury yield jumped a couple of basis points on the release of this report and the CPI data (inline), but has since returned to flat on the session at 2.35%.
    • Homebuilder ETFs: ITB, XHB
    | Fri, Jul. 17, 8:53 AM | 8 Comments
  • Wed, Jun. 24, 1:23 PM
    | Wed, Jun. 24, 1:23 PM | Comment!
  • Wed, Jun. 24, 9:47 AM
    | Wed, Jun. 24, 9:47 AM | 3 Comments
  • Tue, Jun. 23, 11:54 AM
    • Alongside today's launch of triple-levered bull and bear biotech ETFs, ProShares also serves up the double-levered Ultra Homebuilders & Supplies ETF (HBU) and the UlraShort Homebuilder & Supplies ETF (HBZ), along with the Ultra Oil & Gas Exploration & Production ETF (UOP), and the UltraShort Oil & Gas Exploration & Production ETF (SOP).
    | Tue, Jun. 23, 11:54 AM | 1 Comment
  • 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
  • Mon, Jun. 22, 11:22 AM
    • Last week's merger deal between Ryland and Standard Pacific was the first big deal since Pulte purchased Centex in 2009, but it could be a sign of things to come as homebuilders look to stock up assets to take advantage of the housing recovery.
    • Look to smaller, newly public players as spots for deals, say analysts, pointing to Tri Pointe Homes (NYSE:TPH), Taylor Morrison (NYSE:TMHC), and William Lyon (NYSE:WLH) as three whose share prices have struggled versus those of the larger builders.
    • Relative giants like D.R. Horton, PulteGroup, and Lennar already have a sizable presence in key markets, and are less likely to be buyers.
    • ETFs: ITB, XHB
    • Source: Reuters
    | Mon, Jun. 22, 11:22 AM | 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!
ITB vs. ETF Alternatives
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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