Armstrong World (AWI - Get Report) , Lennox International (LII - Get Report) , Masco (MAS - Get Report) , Owens Corning (OC - Get Report) and Vulcan Materials (VMC - Get Report) provide products and materials to each segment of the housing market; new home construction, home resales and home improvement. These companies are also expected to benefit from infrastructure spending programs across the country.

Infrastructure spending will target not only roads, tunnels and bridges, but also covers projects for water treatment, communications improvements, schools, hospitals and urban renewal.

Armstrong World provides ceilings and cabinets. Lennox provides air conditioning and heating systems. Masco provides home improvement and building products. Owens Corning makes insulation, roofing and siding products. Vulcan Materials makes the ingredients for concrete and cement. An improving housing market plus demand from infrastructure spending should help these companies in 2017.

These companies are components of the PHLX Housing Index as are the five homebuilders covered in an earlier story this morning. The homebuilders are trading well below their July 2005 all-time intraday highs, while the construction and materials stocks set their highs between February 2014 and February 2017.

On Wednesday, investors learned that existing home sales jumped 3.3% in January, up to a seasonally adjusted annual rate of 5.69 million units. As the chart below shows, maintaining a trend above 5.5 million units reflects continued growth. However, keep in mind that the 2005 peak was at a rate of 7.26 million units.

 

As a warning, household debt ended 2016 at $12.58 trillion, just below the 2008 peak. Credit card debt is up 4.3% in the fourth quarter, to 779 billion. Student debt is up 2.4% to 1.31 trillion, auto debt is up 1.9% to 1.16 trillion. Mortgage debt is up 1.6% to 8.48 trillion.

Meanwhile, unemployment, including those underemployed or who gave up looking, is 9.4%. Back in 1994, this metric was as low as 6.8%. Labor participation is at 62.9% vs. 65.7% when the Great Recession was declared over.

Here's the scorecard for the housing index and five housing related stocks.

 

Here's the weekly chart for Armstrong World.

 

Courtesy of MetaStock Xenith

The weekly chart will be upgraded to positive given a close this week above its key weekly moving average of $40.38 and below its 200-week simple moving average of $44.30. The weekly momentum reading is projected to rise to 29.19 this week, up from 28.89 on Feb. 17.

Buy weakness to my quarterly and monthly value levels of $40.80 and $40.27, respectively. Reduce holdings on strength to $43.58, which is my semiannual risky level.

Here's the weekly chart for Lennox.

 

Courtesy of MetaStock Xenith

The weekly chart is positive, with the stock above its key weekly moving average of $158.59 and well above its 200-week simple moving average of $109.23. Weekly momentum is projected to rise to 67.66, from 63.46 on Feb. 17.

If you are buying Lennox, buy on weakness to $156.73, which is my weekly value level. To reduce holdings, sell strength to $169.06, which is my monthly risky level.

Here's the weekly chart for Masco.

 

Courtesy of MetaStock Xenith

The weekly chart is positive but overbought. The stock's key weekly moving average is $33.9 and is above its 200-week simple moving average of $24.51. The weekly momentum reading is projected to rise to 80.61 this week, up from 76.27 on Feb. 17.

Buy weakness to $30.40, which is a key level on technical charts until the end of 2017. Reduce holdings on strength to $35.30, which is my semiannual risky level.

Here's the weekly chart for Owens Corning.

 

Courtesy of MetaStock Xenith

The weekly chart is positive but overbought, with the stock above its key weekly moving average of $55.67 and above its 200-week simple moving average of $43.34. The weekly momentum reading is projected to rise to 83.10 this week, up from 78.24 on Feb. 17.

Buy Owens Corning on weakness to $54.48, which is my monthly value level. Reduce holdings on strength to $59.50 and $60.30, which are my quarterly and annual risky levels, respectively.

Here's the weekly chart for Vulcan Materials.

 

Courtesy of MetaStock Xenith

The weekly chart is negative for Vulcan, with the stock below its key weekly moving average of $124.12 and well above its 200-week simple moving average of $83.45. The weekly momentum reading is projected to decline to 36.33 this week, down from 48.18 on Feb. 17.

Vulcan Materials can be bought on weakness to $118.91, which is my semiannual value level. Reduce holdings on strength to $122.81 and $126.05, which are semiannual and monthly risky levels, respectively.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.