The National Association of Realtors reported that sales of existing homes fell by 8.4% in March, compared with February. It was the biggest one-month decline since a 12.6% drop in January 1989, another period of recession conditions in housing. The drop left sales in March at a seasonally adjusted annual rate of 6.12 million units, the slowest pace since June 2003.
Tim Strazzini says today’s trading was not "data dependent" trading. It was based on news from the sector’s CEOs.
Guy Adami adds Toll Brothers (TOL) CEO Bob Toll said his inventory is now half of what it was 4 months ago – and that stock barely closed higher. But, he adds the stocks might not go lower either.
Dylan Ratigan asks about the gaming sector.
Steve Liesman has an interesting (and somewhat unusual) theory about inheritance. He says that instead of leaving money to their children, the current generation will gamble some of it away. Consequently, he reasons, gaming equipment will benefit. He also likes the space because it could be recession proof.
Dylan calls that theory quite thin.
Eric Bolling says Steve is right about the industry, but he’s not sure about the "theory". Eric likes Bally Technologies (BYI) in the space.