U.S. homebuilders are gearing up for a sharp rise in demand this spring as Americans become more confident about keeping their jobs.» Read More
Plus, Cramer explains the retail rally and why China right now is like the Nasdaq in 2000.
Now that the government is in charge of the GSE's (can I call them Government "Sponsored" Entities or should that change to something else??), analysts are looking for the builders to reap the rewards, long term in sales and short term in the stocks.
Cramer's been predicting the return of this sector. But not every stock is worth buying.
Of all the houses in the neighborhood, this is the one you don't want.
There’s always a bull market somewhere, Cramer says. Don’t give up on that.
If all real estate is local, it's also true that what's ailing the market can sometimes spread from one area to the next. That seems to be the case with home foreclosures and the role of two particular kinds of alternative mortgages, which have yet to achieve the villain status of the subprime market.
Disappointing stats on the job market added another layer of anxiety to a market already worried about a global slowdown, which sent stocks spiraling back into bear-market territory.
Stocks fell sharply Thursday as oil clawed back some gains and a report showed jobless claims unexpectedly rose last week.
The biggest complaint is the vicious moves in either direction. As one veteran trader told me this morning: "What I buy on Monday, goes down on Tuesday..what I short on Tuesday, goes up on Wednesday."
Day to day the news is still bad. Lousy earnings today from Toll Brothers after lousy earnings from Hovnanian yesterday after lousy housing starts data for July (starts at a 17-year low). Yet the S&P Homebuilding index shows the group up 20% over the last two months.
Following are the “Fast & Furious” trades - hot ways to play tomorrow's market moving events.
There are homebuilder strategies for savvy investors, says Randy Frederick. The director of derivatives at Charles Schwab gave his plays for the sector now.
Yesterday, Kohl's and JC Penney reported August same store sales slightly better than expected. Today Wal-Mart, Target, Gap, American Eagle (reaffirms third quarter guidance), Pacific Sunwear all reported sales above expectations. However, department stores did not fare as well.
As commodity prices decline, the retail sector revs up.
The Dow fell on Tuesday, despite a steep decline in the price of oil. Also investors hammered energy and materials companies. Has the commodity bubble popped?
Gustav has unfurled a wall of worry for stocks in the week ahead.
For the week and month ending Friday, August 29, 2008, the major U.S. Indices ended slightly lower for the week but up for the month. The markets had a volatile week, sinking first on housing price drops and an up-tick in oil prices, then rallying on better-than-expected GDP numbers, and finally falling to end the week on worse-than-expected personal income and spending data. The Dow hit a 200+ point rally on Thursday, its largest one day gain since 8/8. The NASDAQ led the indices to the downside this week, down nearly 2%. For the August close, the Dow, Nasdaq and S&P all finished up 1.5% or more, marking the best monthly gain since April for the Dow & S&P, and best month for the Nasdaq since May.
Plus, his take on housing stocks and a call correction from last week.
The Mad Money host puts an expiration date on this misery and offers 10 reasons why he’s sure the end is near.
Homebuilders have been at the epicenter of the credit crisis. Have they finally hit a bottom?