U.S. homebuilder confidence remains near a 17-month low, according to fresh data from the The National Association of Home Builders reported at 10:00 AM this morning.
“In general, builders haven’t seen any reason for improved optimism in market conditions over the past month,” noted NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “If anything, consumer uncertainty has increased, and builders feel their hands are tied until potential home buyers feel more secure about the job market and economy.”
While home builder Lennar (LEN) beat analyst estimates this morning and reported a return to profitability, energizing homebuilder shares in the pre-market, what’s notable is that homebuilder stocks gained even more steam after the 10AM confidence report. Such strength on mediocre report (at best) is actually a pretty good sign for the bulls. It’s as if stocks were priced for a disaster, and when things came in as the ‘same old ugly’, they breathed a sigh of relief:
KB Homes (KBH) takes off after the 10AM release:
Pulte Homes (PHM) as well:
D.H. Horton also spiked post-10 AM.
Not convinced? Now see 15 Reasons Why The U.S. Market Is Headed For Complete Collapse >