Homebuilder stocks surge on Toll Brothers beat, new home sales data

Toll Brothers Construction
David Paul Morris | Bloomberg | Getty Images
Toll Brothers Construction

The SPDR Homebuilders ETF rose more than 3 percent Tuesday, as investors digested Toll Brothers quarterly results that beat Wall Street estimates and shockingly strong new home sales data.

The ETF had its best day since March 1, when it gained 2.56 percent.

Toll Brothers gained more than 8 percent to lead the XHB, having posted earnings per share of 51 cents on revenue of $1.12 billion. Analysts polled by Reuters expected the firm to report earnings per share of 46 cents on revenue of $1.04 billion.

The XHB also received a boost from new home sales data for April, which skyrocketed 16.6 percent, handily beating Reuters' estimate of a 2.5 percent gain.

The percent increase was the largest since January 1992.

XHB in 2016Source: FactSet