(Updated to add XHB and related tickers, and to update prices)
NEW YORK (Thomson Financial) - Shares of homebuilders rallied Tuesday, after
data showed that new home construction activity fell a little less than
expected.
The iShares Dow Jones U.S. Home Construction ETF (ITB) was up 1.7% at
$17.79, with 18 of its 21 components gaining ground.
The U.S. Commerce Department said earlier that November housing starts fell
3.7% to a 1.187 million annual rate. The median estimate of economists surveyed
by IFR Markets was for a decline to 1.18 million. October starts, however, were
revised upward by 4.2%.
Building permits fell 1.5% to 1 1.152 million unit rate, better than
expectations of a decline to 1.14 million.
Among the ITB's most heavily-weighted components, NVR Inc. tacked on 1.7% to
$516.50, D.R. Horton Inc. gained 0.7% to $13.64, Toll Brothers Inc. slipped 0.1%
to $20.67, Centex Corp. added 1.4% to $24.69, Ryland Group rose 0.6% to $27.01
and KB Home climbed 1.2% to $22.47.
The S&P Homebuilders SPDR (XHB), a sector ETF that includes home improvement
and furnishings retailers, fell 0.9% to $19.05. Home Depot was up 0.2% to
$25.99, but Lowe's Companies was down 0.4% to $22.66 and Ethan Allen Interiors
was 0.2% lower at $26.20.
Tomi Kilgore
tk1/tk1
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