New York  London  GMT  Tokyo  Singapore 
Tom Lydon

Homebuilder ETFs Trade Nervously Lower Ahead Of Earnings News

By Tom Lydon on July 28, 2008 | More Posts By Tom Lydon | Author's Website

Meritage Homes Corporation (MTH) is expected to deliver their second-quarter earnings numbers, but investors and exchange traded funds (ETFs) aren’t exuding positivity ahead of the news.

Meritage is the 12th-largest homebuilder in the United States.

If the numbers aren’t up to par, it’s just the latest in a long list of bad news for the housing industry. Home sales and prices are falling, with the Commerce Department reporting a 0.6% drop in new single-family home sales in June, reports Alex Veiga for the Associated Press. Sales are now 33% below where they were one year ago, and prices are off 2%.

Centex Corp. is also expected to report a quarterly loss tomorrow, while Pulte Homes announced a loss earlier last week.

The homebuilders ETFs are all trading sharply lower this morning, including:

  • FocusShares ISE Homebuilders Index Fund [[saw]]: down 15.4% year-to-date; MTH is 4.8%; Centex is 6.2%; Pulte is 5%
  • iShares Dow Jones U.S. Home Construction [[itb]]: down 13.4% year-to-date; MTH is 6%; Pulte is 6.2%
  • SPDR Homebuilders [[xhb]]: down 11.8% year-to-date; MTH is 4.7%

If you like this article please...
Subscribe by RSS Subscribe by Email Email This Post To A Friend Email This Post To A Friend

Leave A Comment :

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.
Opinions From Our Contributors
Commodities Financials Exchange Traded Funds
Stocks Forex Economy



Theme By: WordPress Theme Shop