This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sector Snap: Home Builders

NEW YORK (AP) â¿¿ Shares of home builders tumbled Friday, along with the broader market, after the Labor Department said that U.S. employers created just 69,000 jobs in May, the fewest in a year, while the unemployment rate ticked up.

The government also said Friday that the economy created far fewer jobs in the previous two months than first thought. It revised those figures down to show 49,000 fewer jobs created. The unemployment rate rose to 8.2 percent from 8.1 percent in April, the first increase in 11 months.

Shares of home builders fell about 5 percent, marking the third straight day of losses.

Job creation is the fuel for the nation's economic growth. When more people have jobs, more consumers have money to spend â¿¿ and consumer spending drives much of the economy.

The housing industry, especially new home construction, is particularly sensitive to fluctuations in employment and job creation. People who are out of work, or are worried that they soon could be jobless, are less likely to risk investing in a new home. Being unemployed makes it difficult to get a mortgage.

The jobs news overshadowed Commerce Department data, also released Friday, that showed that builders increased spending on construction projects for a second month in April.

Residential construction and new home sales also increased, which could be seen as signs that housing demand has stabilized after years of weakness.

D.R. Horton Inc. posted one of the sector's biggest declines, falling $1.54, or 9.3 percent, to $15.06 in midday trading. Lennar Corp. dropped $2.22, or 8.1 percent, to $25.07.

Ryland Group fell $1.61, or 7.2 percent, to $20.75. Beazer Homes USA Inc. lost 18 cents, or 6.9 percent, to $2.43. Hovnanian Enterprises Inc. fell 11 cents, or 5.9 percent, to $1.76, and KB Home fell 41 cents, or 5.6 percent, to $6.85.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,064.06 +26.09 0.14%
S&P 500 2,110.50 +1.58 0.07%
NASDAQ 5,060.8230 +0.5770 0.01%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs