MasterCard posted results that beat analyst expectations by a much narrower margin than in the past, sending its shares down as much as 12.5 percent in a skittish market Wednesday.
Stocks suffer their worst weekly declines in more than four years as worries about credit and lending undermine investor confidence.
Bad news in the housing market this week was enough to rock the stock market right off its foundations. Existing home sales, new home sales, homebuilder earnings reports, no one expected them to be bright, but the numbers cast a heavy shadow on any optimism for a quick recovery in housing.
Stocks closed sharply lower and the Dow saw its biggest decline since the market meltdown in late February as disappointing news from the housing industry renewed concerns about credit markets and the U.S. economy. "This is just one more of the period panics that we've had in the last six months," said Barton Biggs, managing partner at Traxis Partners. "The puncture of the debt bubble is a positive development and restores some kind of sanity to the debt market."
The slaughterhouse that has been the U.S. housing market for the past few months got bloodier on Thursday as several industry leaders reported worse results, July home sales fell more than expected and stocks throughout the sector hit multiyear lows.
How are some home builder CEOs reacting to the current housing market? Donald R. Horton, CEO D.R. Horton: “Market conditions in the homebuilding industry continue to be challenging as inventory levels of both new and existing homes remain at historically high levels. Increased use of sales incentives continues to put pressure on profit margins. In addition, home price appreciation over the past few years, higher interest rates and tightened credit standards in the mortgage industry are all negatively impacting affordability.”
Credit worries and bad news from home builders trumped any positives from the stream of earnings being reported this morning. Wall Street is set up for a steep drop on the opening and the talk in the market focuses on whether the takeover boom is ending.
Beazer Homes USA, facing a deteriorating U.S. housing market and federal investigations into lending practices, posted a quarterly loss on Thursday as the builder took charges for inventory and goodwill impairments and abandonment of land option contracts.
Next week, no fewer than six major public home builders will report their quarterly earnings, all right around the same day that the U.S. Dept. of Commerce reports its New Home Sales data for the month of June. I doubt either will be very heartening for investors.
Speculation that Warren Buffett could buy a stake in Hovnanian sent the homebuilders up. But on "Street Signs" today Cramer explained why there's a more likely target. Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Beazer Homes USA said it fired chief accounting officer Michael Rand due to violations of the company's ethics policy stemming from attempts to destroy documents.
Beazer Homes USA said the U.S. SEC is conducting an informal inquiry to determine if the company or its employees had violated securities laws.
Beazer Homes reported a substantial loss in its fiscal second quarter as sales fell sharply from the same quarter a year ago due to weakness in the U.S. housing market. The company also withdrew its full-year earnings guidance.
Stocks are set to move higher at the opening, with the Dow heading straight for the 13,000 mark. European shares are higher, as the rising euro closes in on its all-time high against the dollar. Overnight, Asian stocks were lower, with Tokyo stocks falling on worries about the U.S. consumer after yesterday's weak housing data and consumer confidence number. Japanese automakers' shares were dented in the selling.
Builders remain cautious and buyers continue to be hesitant, but investors may want to make a move.
Guest blogger Jeff Mishlove is back--with more insights for you contest players. He's called this piece, "Surf the Waves and Buy the Dips." Here it is: You don’t have to live in California or Hawaii to surf the stock market. And, you can buy the dips without worrying about consuming too many calories or grams of fat. In fact, during the heyday of the 1990’s internet bubble, the rallying cry was “buy every dip!”
Beazer Homes USA said on Friday it would review two lawsuits filed against the home builder, one of which accuses the company of using practices that allowed unqualified borrowers to get loans to buy its homes, but said it believes both were without merit.
Is it worth getting into ICE or BOT ahead of a possible buyout? Is Saks less immune in an economic downturn than Federated? The guys go face-to-face with some inquiring minds.
In the wake of a Charlotte Observer report about one area's unusually high foreclosure rate, Beazer Homes USA said it has received a grand jury subpoena from the U.S. Attorney's Office, which is probing its mortgage origination business. A unique case? Not according to CGM Capital Management's Kenneth Heebner, who says the negative impact of fast and loose lending policy has "only begun."
Beazer Homes USA said it has received a grand jury subpoena from the U.S. Attorney's Office, which is seeking documents relating to it mortgage origination business.