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Housing Stocks Tumble Midday; Home Depot Dents Dow

Published 10/17/2018, 11:50 AM
Updated 10/17/2018, 12:08 PM
© Reuters. Home Depot sold off in midday trading.

Investing.com - Home Depot (NYSE:HD) and other housing-leveraged stocks fell in midday trading following disappointing data on home construction.

Home Depot fell about 4.2% at 12:08 PM ET (16:08 GMT) and was a drag on the Dow Jones Industrial Average.

New home sales for September fell more than expected, while building permits recorded an unexpected drop for that month, the Commerce Department reported ahead of trading.

The housing sector has been the one area of weakness in the strong U.S. economy and homebuilding stock have been steadily declining.

The iShares U.S. Home Construction ETF (NYSE:ITB) was down about 2.2%.

That measure of housing stocks has been down six of the last seven sessions. And it’s been following a regular downward pattern since mid-September, off about 15%.

Among other stocks struggling were Home Depot’s home repair rival Lowe’s (NYSE:LOW), which dropped about 3% and homebuilders Lennar (NYSE:LEN), down about 2.4%, DR Horton (NYSE:DHI), off about 2%, and Toll Brothers (NYSE:TOL) losing about 2.5%.

Latest comments

im not really understand how to envest and collect my money earn..
Homebuilding drop due to 3 reasons comes to mind. 1. Builders together with bankers not building enough to keep the supply low. 2. Underlying economy is not as good as it looks. 3. Due to high interest rate people are shying away from buying new homes.
The economy is awesome rising interest rates make housing unaffordable due to debt-to-income ratios
the is always time for everything
about time lol
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