I was struck by a line toward the end of Hovnanian Enterprise Inc.'s very dour Q2 forecast. After detailing how earnings losses would be more than double expectations, including all those land losses of course, and how the "results reflect a continued challenging operating environment in most of the company's markets," the conclusion was as follows: "The adverse publicity surrounding the sub-prime market has further damaged home buyers' psychology."
Hovnanian Enterprises said on Friday its second-quarter loss would be bigger than it had previously expected, as the subprime mortgage crisis exacerbated weakness in the moribund home-building sector.
Thanks to the housing boom, a lot more people own million-dollar homes than a decade ago, but the status symbol certainly isn't what it used to be.
Builders remain cautious and buyers continue to be hesitant, but investors may want to make a move.
Kroger, Exxon and more ... the callers are quick but Cramer is quicker. 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.
You'd be surprised with how much can happen in a mere 30 seconds on Mad Money. Here's a perfect example.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.
Hovnanian CEO Ara Hovnanian said he no longer sees the signs of stabilization in the housing market he did in March, and now warns the industry is still a ways from improvement. “The subprime has gotten a lot of attention and it’s not just been the direct effect of the subprime but the psychological effect, even by those that are not using subprime mortgages.… It’s causing hesitation,” Hovnanian told CNBC’s Erin Burnett on "Street Signs."
Housing is highly cyclical, and stocks in the sector often hit bottom a year before the fundamentals turn sour. A Citigroup analyst says cancellations of new home orders are down and expects the residential housing sector to turn around in the second half of 2007.
Stocks closed mostly higher as investors shrugged off the latest inflation news and energy shares rallied on strength in crude prices.
Good morning. Our quote of the day comes from the poet Horace: "As a rule, adversity reveals genius and prosperity hides it." We'll see just how prosperous the U.S. housing market is today--when the housing starts and building permit numbers come out around 8:30 a.m. ET. We'll have guests including President and CEO Ara Hovnanian of Hovnanian Enterprises..