NEW YORK (Thomson Financial) - Homebuilding stocks rose sharply Monday,
bouncing off all-time lows hit earlier in the session as the broader market
pared some of its losses with the Nasdaq Composite rebounding into positive
territory.
The iShares Dow Jones U.S. Home Construction ETF (ITB) rose 5.5% to $20.47,
after hitting a record low at $19.08.
The SPDR S&P Homebuilders (XHB) jumped 5.8% to $22.11. In intraday trading,
the fund has fallen to $20.53.
NVR Inc. led the advancers with a rise of more than 11% to $479.6.
Shares of NVR gained 3% last Friday after the company reported third-quarter
earnings that were ahead of some analyst expectations.
Elsewhere, shares of D.H. Horton Inc. rose 5.3% to $12.56, Toll Brothers
Inc. gained 5.1% to $21.55 and Ryland Group Inc. jumped 5.3% to $25.18.
KB Home rose 4.5% to $26.87 and Pulte Homes Inc. rallied 5.9% to $14.46.
The gains come ahead of data on U.S. existing and new homes sales later this
week.
Existing home sales are expected to decline to 5.2 million in September from
5.5 million in August, while new home sales likely fell to 775,000 in September
from 795,000 in the previous month, according to economists polled by
Thomson/IRF.
Wanfeng Zhou
wz/pc
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