Shares of most homebuilders rallied on Thursday, thanks to the Federal Reserve Chairman Ben Bernanke’s extremely dovish remarks.
While addressing a group of economists at the National Bureau of Economic Research,the Fed Chairman on Wednesday said that the bank still believes the need for continuing with its accommodating policy for foreseeable future. Bernanke said that the period of ultra-low interest rates and the bond purchase program will continue as the central bank looks to shore up the labor market, which is improving but not strong enough to warrant an immediate pullback of economic stimulating measures.
Lately, most homebuilders have been posting strong quarterly results, aided by lower interest rates, and overall improvement in the macroeconomic environment.
Separately, a report released on Thursday by a foreclosures listing firm RealtyTrac Inc showed that number of foreclosures fell sharply in June. The report said that lenders started foreclosures procedure on 57,286 homes, which is the lowest level recorded in last 7.5 years. The report underpins the fact that the U.S. housing market, which reeled under pressure following sub-prime mortgage crises, has seen its worst.
Shares of D. R. Horton Inc. (NYSE: DHI) rallied 9.17% to close at $22.98 on Thursday. Shares gained another 0.61% in afterhours trading. The homebuilder is slated to report fiscal third quarter results on July 25.
Shares of K B Home (NYSE: KBH) climbed 7.04% to $19.62 in regular trading hours but slipped 0.41% in afterhours.
Shares of Toll Brothers Inc. (NYSE: TOL) gained 6.61% to $34.66 in regular trading hours on Thursday but edged down 0.32% in afterhours.
Shares of Standard Pacific Corp. (NYSE: SPF) jumped 5.59% to $8.69.
Shares of Lennar Corporation (NYSE: LEN) rallied 8.33% to $37.44 in regular trading hours but remained mainly flat in extended trading.
Shares of PulteGroup Inc. (NYSE: PHM) gained 7.20% to $20.39 in regular trading hours on Thursday but remained mainly unchanged in afterhours.
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