Housing, building materials stocks brought down by earnings
Dow, Nasdaq now ~flat; S&P 500 slips
Industrials weakest S&P sector; Staples lead gainers
Dollar ~flat; gold gains ~1%; crude up ~2.5%; Bitcoin off ~1%
U.S. 10-Year Treasury yield edges up to ~4.20%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
HOUSING, BUILDING MATERIALS STOCKS BROUGHT DOWN BY EARNINGS
Shares of housing and building materials companies are lower on Tuesday after investors were disappointed by quarterly updates from handful of housing-related companies.
On the homebuilder side, NVR Inc NVR.N shares are down about 3% after it missed Wall Street estimates for third-quarter earnings per share as higher lot costs and closing cost assistance weighed on profit margins.
Also, U.S. homebuilder PulteGroup PHM.N is seeing its shares fall about 6% after it reported home sale gross margins below year-ago levels even as it beat Wall Street estimates for third-quarter earnings.
On the materials side, shares of paint company Sherwin-Williams SHW.N are down >4% after it missed third-quarter profit estimates due to lower sales in segments catering to housing, as well as automotive and aerospace.
While they did not report earnings themselves, the reports appear to be pressuring related companies such as Builders FirstSource BLDR.N, which is off >2%, Martin Marietta MLM.N, down 1.7% 2% and Vulcan Materials VMC.N, down about 2%. Masco Corp MAS.N is down >2%, while Carlisle CSL.N is down 1.6%.
Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, pointed to the weaker than expected earnings reports for the declines as well as concerns that interest rates could impact demand.
"There's news from companies in the sector that is a little weaker than expected. That plus the backup in interest rates is making other companies in the sector weaker than the market today," he said.
While the broader S&P 500 index .SPX is off just 0.2% on Tuesday, the S&P 500 building products index .SPLRCBULD is down 1.4%. The building products index had gained sharply in September, but started to lose steam around mid October.
"As mortgage rates were coming down there was optimism more homebuilding would occur. When rates turn around there's a likelihood home sales and home building will fall off subsequent to that," said Tuz.
(Sinéad Carew)
*****
FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:
BOFA CLIENTS' BUYBACKS REMAIN BUOYANT - CLICK HERE
DON'T BE A SHEEP FOLLOWING THE TRUMP-BETTING FLOCK - CLICK HERE
WALL STREET UNDER PRESSURE AS RATES UPTREND WEIGHS CLICK HERE
BENCHMARK TREASURY YIELD: CAN THE CLIMB CLEAR THE CLOUD? - CLICK HERE
CAUTION! S&P POSITIONING HAS BECOME 'STRETCHED' - CLICK HERE
BETTING ON M&A? HERE'S WHAT TO OWN - CLICK HERE
WEAK START FOR STOXX, TECH CAPS FURTHER LOSSES - CLICK HERE
EUROPEAN BEFORE THE BELL: UNCERTAINTY OFFSETS POSITIVE EARNINGS - CLICK HERE
BONDS AND GOLD BEGIN COUNTDOWN TO US ELECTION DAY - CLICK HERE
Aset Berkaitan
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
