Sector Snap: Homebuilders Surge
Wednesday January 23, 12:35 pm ET
http://biz.yahoo.com/ap/080123/homebuilders_sector_snap.html?.v=1
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</td></tr></tbody></table>Housing Stocks Up Sharply for Second Day on US Mortgage Application Data NEW YORK (AP) -- Housing stocks surged for the second day in a row Wednesday, the same day as word of mortgage applications rising and a day after the Federal Reserve sought to kick-start the economy with an interest rate cut.
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</td></tr></tbody></table>Many of the sector's leading names jumped more than 10 percent in midday trading. Shares of Hovnanian Enterprises Inc. led the gainers in afternoon trading, adding $1.12, or 17 percent to $7.65.
And Beazer Homes USA Inc. gained 13.2 percent to $6.45. Investors ignored a sharp drop in Beazer's fiscal first-quarter earnings to focus on the fact that its cancellation rate fell sharply from the previous quarter.
D.R. Horton Inc., Lennar Corp. and Pulte Homes Inc. -- the largest builders by volume -- each added more than 8 percent. These companies have been curbing construction to sell a glut of existing inventory that has been keeping prices low.
Buyers who might be ready to buy a residence have seen banks tighten lending standards, making it difficult to get a mortgage.
The market welcomed news Wednesday that U.S. mortgage applications rose 8.3 percent in the week ending Jan. 18. The bump doesn't mean buyers flocked back to the market, as nearly two-thirds of the new applicants sought to refinance to take advantage of falling interest rates.
Those rates are not directly influenced by the Fed's surprise move Tuesday. Analysts said the looser monetary policy won't help the housing industry, now in its third year of decline after a five-year boom, but that didn't stop homebuilder stocks from piling on gains of more than 7 percent Tuesday.
However, the Fed's move may help keep adjustable-rate mortgages from resetting to sharply higher rates because those are pegged to the short-term metric controlled by the central bank. And that could mitigate an expected increase in foreclosures.
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Tizdoom-gloom about to hit the dirt -- again.
Wednesday January 23, 12:35 pm ET
http://biz.yahoo.com/ap/080123/homebuilders_sector_snap.html?.v=1
<table border="0" cellpadding="0" cellspacing="0" height="4"><tbody><tr><td height="4">
</td></tr></tbody></table>Housing Stocks Up Sharply for Second Day on US Mortgage Application Data NEW YORK (AP) -- Housing stocks surged for the second day in a row Wednesday, the same day as word of mortgage applications rising and a day after the Federal Reserve sought to kick-start the economy with an interest rate cut.
<table align="left" border="0" cellpadding="4" cellspacing="4"><tbody><tr><td><script language="javascript">if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d['6fTUC9FJsYY-']='&U=13b08f8f0%2fN%3d6fTUC9FJsYY-%2fC%3d626899.11742544.12469774.1383221%2fD%3dLREC%2fB%3d5133107'; </script><noscript>
</td></tr></tbody></table>Many of the sector's leading names jumped more than 10 percent in midday trading. Shares of Hovnanian Enterprises Inc. led the gainers in afternoon trading, adding $1.12, or 17 percent to $7.65.
And Beazer Homes USA Inc. gained 13.2 percent to $6.45. Investors ignored a sharp drop in Beazer's fiscal first-quarter earnings to focus on the fact that its cancellation rate fell sharply from the previous quarter.
D.R. Horton Inc., Lennar Corp. and Pulte Homes Inc. -- the largest builders by volume -- each added more than 8 percent. These companies have been curbing construction to sell a glut of existing inventory that has been keeping prices low.
Buyers who might be ready to buy a residence have seen banks tighten lending standards, making it difficult to get a mortgage.
The market welcomed news Wednesday that U.S. mortgage applications rose 8.3 percent in the week ending Jan. 18. The bump doesn't mean buyers flocked back to the market, as nearly two-thirds of the new applicants sought to refinance to take advantage of falling interest rates.
Those rates are not directly influenced by the Fed's surprise move Tuesday. Analysts said the looser monetary policy won't help the housing industry, now in its third year of decline after a five-year boom, but that didn't stop homebuilder stocks from piling on gains of more than 7 percent Tuesday.
However, the Fed's move may help keep adjustable-rate mortgages from resetting to sharply higher rates because those are pegged to the short-term metric controlled by the central bank. And that could mitigate an expected increase in foreclosures.
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Tizdoom-gloom about to hit the dirt -- again.
some other smaller players
ctxs, gild, qlgc, symc, wdc, nflx, ffiv,
wow motorola down 18% on earnings today yikes (10 now)
haha joe chimes in
enjoy the bear shake whenever it comes (i'm hoping for one soon as i covered some of my shorts trying to get cute, don't want a crash quite yet if we have one coming)
its all noise joe see you at sub 10k dow in the future, that's pretty much a shoe in
the writing is on the wall just day to day noise at this point, sell any big rallies
ctxs, gild, qlgc, symc, wdc, nflx, ffiv,
wow motorola down 18% on earnings today yikes (10 now)
haha joe chimes in
enjoy the bear shake whenever it comes (i'm hoping for one soon as i covered some of my shorts trying to get cute, don't want a crash quite yet if we have one coming)
its all noise joe see you at sub 10k dow in the future, that's pretty much a shoe in
the writing is on the wall just day to day noise at this point, sell any big rallies
I would think EBAY would be a great recession play. They make there money on listings and paypal. Lots of junk will be for sale as people try to make ends meet.
Maybe a long EBAY short AMZN dollar for dollar might be a nice way to play the "times are getting tough" trade while limiting risk on both sides.
Maybe a long EBAY short AMZN dollar for dollar might be a nice way to play the "times are getting tough" trade while limiting risk on both sides.
some other smaller players
ctxs, gild, qlgc, symc, wdc, nflx, ffiv,
wow motorola down 18% on earnings today yikes (10 now)
haha joe chimes in
enjoy the bear shake whenever it comes (i'm hoping for one soon as i covered some of my shorts trying to get cute, don't want a crash quite yet if we have one coming)
its all noise joe see you at sub 10k dow in the future, that's pretty much a shoe in
the writing is on the wall just day to day noise at this point, sell any big rallies
And you tay you're not a perma-bear.
:monsters-
plus my mom and grandma are finally get freaked out to boot
i was able to rip what i could outta their hands before the fall but its tough work ripping stuff away from permabulls hands until they get freaked out even if they rationally see doom and gloom coming
they want to get out at higher prices
i'm sure many other perma bulls out there like that
i was able to rip what i could outta their hands before the fall but its tough work ripping stuff away from permabulls hands until they get freaked out even if they rationally see doom and gloom coming
they want to get out at higher prices
i'm sure many other perma bulls out there like that
nah HIGHLY doubt 10 years, even in the great depression markets bottomed in like 3 years time
granted things weren't good on the streets for many years after the market bottom
bears are sharp, swift, and volitile as far as the markets go.....
i'll let you know when i'm a bull if i'm still around these parts
granted things weren't good on the streets for many years after the market bottom
bears are sharp, swift, and volitile as far as the markets go.....
i'll let you know when i'm a bull if i'm still around these parts
The Bears' Lament
"The sky is falling" or so we're told,
but these pronouncements are growing old.
"Sell stocks and bonds and bar the door!"
Haven't we all heard this before?
"The crash will come," the bears intone.
Too bad for them their shorts are blown.
Perhaps they should give the charts a look,
and see the market they all forsook.
Instead of taking their bad advice,
The investor should ask, "At what price?"
For they've missed more than one bullish run:
no sense in missing another one.
"The sky is falling" or so we're told,
but these pronouncements are growing old.
"Sell stocks and bonds and bar the door!"
Haven't we all heard this before?
"The crash will come," the bears intone.
Too bad for them their shorts are blown.
Perhaps they should give the charts a look,
and see the market they all forsook.
Instead of taking their bad advice,
The investor should ask, "At what price?"
For they've missed more than one bullish run:
no sense in missing another one.
markets move on the future romo
q4 numbers irrelevant for the most part
markets reacting to expectations going forward
for example aapl beat in q4 but lowered expectations so its getting punished big time
plus near term the markets are a bit skiddish
also the expectations for ALL companies going forward are way to high and are in the process of being revised to more reasonable levels based on where we are heading
plus JNJ at 18 p/e historically that is still high for a blue chip moderate growth stock and during viscous bears things tend to get really oversold regardless
some bears end with p/es of the big boys in the single digits on average
q4 numbers irrelevant for the most part
markets reacting to expectations going forward
for example aapl beat in q4 but lowered expectations so its getting punished big time
plus near term the markets are a bit skiddish
also the expectations for ALL companies going forward are way to high and are in the process of being revised to more reasonable levels based on where we are heading
plus JNJ at 18 p/e historically that is still high for a blue chip moderate growth stock and during viscous bears things tend to get really oversold regardless
some bears end with p/es of the big boys in the single digits on average
plus JNJ will survive better due to USD being in the crapper
Revenues totaled $15.96 billion, up 16.6 percent from $13.7 billion in the year-ago quarter. Most growth came overseas, with international sales jumping 26 percent and currency exchange rates boosting revenues nearly 5 percent.
big international companies will likely weather to storm better than most
those that solely depend on US consumption are scroomed
also JNJ missed anyway romo
expectations were 86 cents earned 82 cents like i said expectations just too high at this point and are in the process of being revised down
plus they still are being dumb and not revising expectations down for now
they won't meet that come end of 2008 i don't think
J&J said it expects earnings per share for 2008 to total $4.39 to $4.44, excluding one-time items. Analysts have been looking for earnings of $4.42 a share for 2008.
For the full year 2007, J&J reported net income of $10.6 billion, or $3.63 per share, down slightly from $11.05 billion, or $3.73 per share, in 2006. Sales totaled $61.1 billion in 2007, up from $53.3 billion the prior year.
Revenues totaled $15.96 billion, up 16.6 percent from $13.7 billion in the year-ago quarter. Most growth came overseas, with international sales jumping 26 percent and currency exchange rates boosting revenues nearly 5 percent.
big international companies will likely weather to storm better than most
those that solely depend on US consumption are scroomed
also JNJ missed anyway romo
expectations were 86 cents earned 82 cents like i said expectations just too high at this point and are in the process of being revised down
plus they still are being dumb and not revising expectations down for now
they won't meet that come end of 2008 i don't think
J&J said it expects earnings per share for 2008 to total $4.39 to $4.44, excluding one-time items. Analysts have been looking for earnings of $4.42 a share for 2008.
For the full year 2007, J&J reported net income of $10.6 billion, or $3.63 per share, down slightly from $11.05 billion, or $3.73 per share, in 2006. Sales totaled $61.1 billion in 2007, up from $53.3 billion the prior year.
looking forward to tomorrow in the morning we have earnings from
T (at&T), F (ford), nok (nokia), hsy (hershey), unp (union pacific), xrx (xerox)
love the headlines still
its still recession worries not we are heading for recession how bad is it gonna be as it should be
Stocks Fluctuate Amid Recession Worries- AP
here comes the bear shake artillery S&P green now do they flip even techies green :shoot3::shoot3:
the up shots are more viscous than the down swings in bears
T (at&T), F (ford), nok (nokia), hsy (hershey), unp (union pacific), xrx (xerox)
love the headlines still
its still recession worries not we are heading for recession how bad is it gonna be as it should be
Stocks Fluctuate Amid Recession Worries- AP
here comes the bear shake artillery S&P green now do they flip even techies green :shoot3::shoot3:
the up shots are more viscous than the down swings in bears
http://biz.yahoo.com/ap/080123/budget_deficit.html
CBO Sees $250B Federal Budget Deficit
Wednesday January 23, 1:49 pm ET
By Andrew Taylor, Associated Press Writer
CBO Predicts Federal Budget Deficit Will Rise to $250 Billion As Economy Weakens
WASHINGTON (AP) -- The deficit for the current budget year will jump to about $250 billion under Congressional Budget Office figures released Wednesday, as a weaker economy and lower corporate profits weigh on the government's fiscal ledger.
And that figure does not reflect more than $100 billion in red ink from an economic stimulus measure in the works.
"After three years of declining budget deficits, a slowing economy this year will contribute to an increase in the deficit," the CBO report said.
The figure greatly exceeds the $163 billion in red ink registered last year. Adding likely but still unapproved outlays for the wars in Iraq and Afghanistan brings its "baseline" deficit estimate of $219 billion to about $250 billion, the nonpartisan CBO said.
CBO Sees $250B Federal Budget Deficit
Wednesday January 23, 1:49 pm ET
By Andrew Taylor, Associated Press Writer
CBO Predicts Federal Budget Deficit Will Rise to $250 Billion As Economy Weakens
WASHINGTON (AP) -- The deficit for the current budget year will jump to about $250 billion under Congressional Budget Office figures released Wednesday, as a weaker economy and lower corporate profits weigh on the government's fiscal ledger.
And that figure does not reflect more than $100 billion in red ink from an economic stimulus measure in the works.
"After three years of declining budget deficits, a slowing economy this year will contribute to an increase in the deficit," the CBO report said.
The figure greatly exceeds the $163 billion in red ink registered last year. Adding likely but still unapproved outlays for the wars in Iraq and Afghanistan brings its "baseline" deficit estimate of $219 billion to about $250 billion, the nonpartisan CBO said.
