SPDR Series Trust SPDR Homebuilders ETF (ARCA: XHB)

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In seeking to track the performance of the S&P Homebuilders Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the homebuilders segment of the S&P Total Market Index (S&P TMI).

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미국의 도시들이 계속해서 역사적인 폭염 기록을 경신함에 따라 전국의 근로자들, 의회의원들, 기업들에서는 주정부가 폭염 상황에서 근로자를 보호해야 하는가에 대한 논쟁을 시작하고 있다.

美 폭염으로 기록이 깨졌지만 2024년 선거 결과로 근로자 보호가 인질로 잡힐 수도

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6월 PPI는 금리 인하에 대한 시장 기대를 약화시킬 수 있을까? 금요일 주목해야 할 5개 ETF

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시장은 사상 최고치 이후 정상적인 일시 정지를 경험할 것, 이익 실현의 시간: 전문가

A flurry of new data is in and the housing market is flashing mixed signals from builders, buyers and analysts. Here&#8217;s what <a href="https://www.benzinga.com/markets/bonds/25/01/42963973/housing-demand-falls-as-average-30-year-mortgage-rate-above-7">you need to know.</a>
The Data: The Census Bureau and the Department of Housing and Urban Development December<a href="https://www.census.gov/construction/nrc/current/index.html"> housing data</a> released Friday was mixed with housing starts beating expectations while housing completions declined. 
Housing starts jumped 15.8% in December to a seasonally adjusted annual rate of 1.499 million, surpassing the estimate of 1.33 million and rising sharply from November's revised rate of 1.294 million. However, privately-owned housing units authorized by building permits in December declined 0.7% from November's rate of 1.493 million and fell 3.1% compared to December 2023.
Meanwhile, housing completions fell 4.8% in December to 1.544 million, potentially signaling that builders face challenges in finishing projects. Annual housing completions in 2024 rose 12.3% to 1.627 million. 
Read Next: <a href="https://www.benzinga.com/general/health-care/25/01/43041254/unitedhealth-ceo-highlights-hospitals-doctors-pharmas-role-in-soaring-health-care-costs">UnitedHealth CEO Highlights Hospitals, Doctors, Pharma&#8217;s Role In Soaring Health Care Costs</a>&nbsp;
According to <a href="https://www.nahb.org/news-and-economics/housing-economics/indices/housing-market-index">data released</a> Thursday from the National Association of Home Builders and Wells Fargo, U.S. homebuilders lowered their six-month outlook on prospective sales as buyers are discouraged by rising mortgage rates which crossed over the 7% mark last week.&nbsp;
However, homebuilder sentiment rose in January on optimism about current sales and prospective buyer traffic. The survey also attributed the rise in sentiment to the anticipation of likely more favorable regulatory conditions under the incoming Trump administration. 
Expert Ideas: Analysts from JPMorgan said on Friday that the firm remains optimistic on housing spending, despite surging mortgage rates.&nbsp;
The analysts view consumers as in the "acceptance phase" when it comes to interest rates and expect existing home sales to grind modestly higher, up from 40-year lows.&nbsp;
"More specifically, we believe 30-year mortgage rates being in the high 6 range is ‘okay,'" JPMorgan analysts wrote.&nbsp;
Stocks To Watch: Investors can track the U.S. homebuilders and construction through the IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and the SPDR Series Trust SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>). 
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/25/01/43007213/experts-see-the-fed-on-hold-for-now-if-there-are-any-cuts-at-all-in-2025-after-decembers-sticky-consumer-inflation-report">Interest Rate Cuts &#8216;On Hold&#8230; If There Are Any At All In 2025&#8217; After December&#8217;s Sticky Consumer Inflation Report: Economists&nbsp;</a></li>
</ul>
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Housing Market: Builders Forge Ahead As Buyers Enter 'Acceptance Phase' On Rates

Investors may be underestimating Donald Trump&#8216;s potential push for fiscal discipline, making long-term bonds and rate-sensitive sectors an attractive bet, according to Bank of America&#8217;s chief <a href="https://www.benzinga.com/topic/expert-ideas">investment strategist Michael Hartnett. </a>
In his flagship &#8216;The Flow Show&#8217; report published Friday, Hartnett shifted to a bullish stance on bonds, stressing that the yield spike seen in recent months has created an opportunity. 
&#8220;20-year corporate bonds now yielding 6.3%, pension funds would be looking to park some of those gains in bonds,&#8221; he said, recommending investors &#8220;buy long duration bonds.&#8221;
Hartnett indicated the case for duration bonds – as commonly tracked by the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) – is strengthening as U.S. government spending slows, the Federal Reserve keeps a cautious stance on inflation, and yields approach peak levels.
<h3 class="wp-block-heading">Is The Bond Bear Market Peaking?</h3>
The past two years have been brutal for fixed-income investors. 
Higher-for-longer interest rates and rising deficits crushed bond prices, and since the Federal Reserve's 100-basis-point interest rate cuts, bonds have remained the worst-performing asset class. 
Yet Hartnett sees the tide turning.
Historically, rolling 10-year returns from U.S. Treasuries have never been negative over the past 90 years. The market has reached what he calls the &#8220;peak in &#8216;anything but bonds&#8217; trade of the 2020s.&#8221;
The technical backdrop also suggests stabilization. The 30-year Treasury yield has hit a double top at 5%, a level Hartnett believes represents strong resistance.
If yields retreat toward 4%, a diversified low-risk bond portfolio—comprised of Treasuries, investment-grade debt, high-yield bonds, and emerging market credit—could generate 11%-12% annualized returns, Hartnett highlighted.
A higher-risk allocation, with greater exposure to junk bonds and preferred securities, could yield up to 15%.
<h3 class="wp-block-heading">Trump's Fiscal Shift </h3>
As Hartnett highlighted, the U.S. budget deficit has risen to $7.3 trillion, fueling a 50% surge in nominal GDP, with government spending contributing significantly to economic growth.
Yet, according to the expert with the Fed prioritizing inflation control and Trump likely pushing for spending cuts, deficits could shrink, reducing upward pressure on yields. 
&#8220;We say Trump&#8217;s need for &#8216;smaller government&#8217; = &#8216;twin peak&#8217; in 5% bond yields,&#8221; Hartnett said.
Scott Bessent, Trump's nominee for Treasury Secretary, made it clear during his Senate confirmation hearing on Thursday that tackling government spending <a href="https://www.benzinga.com/government/regulations/25/01/43041207/5-things-investors-need-to-know-about-scott-bessents-economic-policies-as-he-faces-senate-grilling-for-treasury-job">will be a top priority.</a>
&#8220;We have a spending problem,&#8221; he said, emphasizing the need for significant reductions in government outlays.
Bessent indicated runaway spending as a key reason he joined the Trump campaign, signaling his commitment to aggressive fiscal tightening. 
&#8220;One of the things that got me out from behind my desk and my quiet life in this campaign was the thought that this spending is out of control,&#8221; Bessent said.
<h3 class="wp-block-heading">The Bond Market's Attractive Risk-Reward Profile</h3>
At current levels, the bond market presents what Hartnett describes as a &#8220;very good&#8221; risk-reward profile. 
A scenario where yields drop 100 basis points (1 percentage point) could generate strong returns, while even a rise in yields may not severely dent total performance. 
With yields near 5%, the worst may be over for bonds, according to Hartnett&#8217;s calculations. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Portfolio Type</th>
<th>Current Yield (%)</th>
<th>Duration</th>
<th>Convexity</th>
<th>1-Year Return (If Yields Drop 100bps)</th>
<th>2-Year Return (If Yields Drop 100bps)</th>
<th>1-Year Return (If Yields Rise 100bps)</th>
<th>2-Year Return (If Yields Rise 100bps)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Low-risk bond portfolio</td>
<td>5.7%</td>
<td>6.5</td>
<td>1.1</td>
<td>12%</td>
<td>17%</td>
<td>-1.0%</td>
<td>5%</td>
</tr>
<tr>
<td>High-risk bond portfolio</td>
<td>7.5%</td>
<td>7.0</td>
<td>0.9</td>
<td>15%</td>
<td>22%</td>
<td>0.4%</td>
<td>8%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Bank of America</figcaption></figure>
<h3 class="wp-block-heading">Which Sector ETFs Stand To Benefit?</h3>
Investors looking to position for lower yields should consider rate-sensitive exchange-traded funds. 
Hartnett's report highlights opportunities in:
<ul>
<li>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>): Lower mortgage rates could revive housing demand.</li>
<li>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>): Defensive, dividend-paying stocks tend to outperform in a falling rate environment.</li>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>): Banks benefit from a steepening yield curve and deregulation.</li>
<li>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>): Growth stocks, including biotech, typically gain as borrowing costs decrease.</li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42990155/5-yields-fuel-demand-treasury-etfs-despite-bond-market-pain-relief-rally">5% Yields Fuel Demand For Long-Dated Treasury ETFs Despite Bond Market Pain: Is A Relief Rally On The Horizon?</a></li>
</ul>
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'Buy Long Duration Bonds,' Says Bank Of America Strategist: 4 ETFs To Watch As Trump's Deficit Fight Unfolds

Fixed-rate mortgage rates have steadily declined, marking a third consecutive week of decrease. Freddie Mac's data shows that 30-year <a href="https://www.benzinga.com/money/mortgages">fixed-rate mortgage</a> now averages 6.60%, significantly lower than the 6.95% rate from a year ago.
"The combination of mortgage rate declines, firm consumer income growth, and a bullish stock market have increased homebuyer demand in recent weeks. While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds," <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-continue-drop-3">noted</a> Sam Khater, Freddie Mac's chief economist.
Fixed-rate mortgages are crucial for many homebuyers, particularly first-time buyers because they offer predictability. Since the interest rate remains constant throughout the loan term, borrowers know their monthly payments regardless of market conditions, making for easier financial planning and buying peace of mind. If these rates continue to drop, this development could make homeownership more accessible, stimulating sales.
<a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales">Recent data</a> reveals that the U.S. housing market is showing signs of recovery. Existing home sales rose 3.5% in October 2024, rebounding from a 14-year low and surpassing market expectations.
However, the median home sales price increased by 4% to $407,200, outpacing November&#8217;s 2.7% inflation rate. While Khater warned about these dynamics, home prices typically rise faster than inflation, which is one reason they were excluded from the Consumer Price Index (CPI) calculation in 1983.
Falling mortgage rates support optimism for the market, which suffered high borrowing costs earlier this year. Furthermore, the National Association of Realtors Chief Economist Lawrence Yun noted increased inventory could further bolster home sales, with job growth and economic expansion supporting growing housing demand.
Still, the home construction market offered mixed results, as shown by broad market ETFs. The iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) returned 14.66% year-to-date, while the SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) fared better at 23.06%. The Invesco Building &amp; Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKB#NYSE">PKB</a>) outperformed with 31.86% — however, it is worth noting that it is by far the smallest and most expensive of the group.
Two notable stocks in the sector performed similarly. KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) has clocked a solid yet underperforming 18.52% return year-to-date. It trades at 8.9x its earnings, significantly lagging the peer average 21.1x.  Meanwhile, Toll Brothers Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) outperformed, climbing 37.39% year-to-date. Still, the firm trades cheaper than its peers at 8.8x its earnings. Following the <a href="https://www.benzinga.com/news/earnings/earnings-beats/24/12/42418066/toll-brothers-investors-may-be-disappointed-with-guidance-analysts-say-after-q4-earnings">latest earnings results</a>, Oppenheimer and JPMorgan reiterated an Outperform and Overweight rating, citing robust demand but warning about the gross-margin guidance for the first quarter of fiscal 2025.
Read Next: • <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42471357/egg-hyperinflation-could-spike-grocery-prices-why-cal-maine-vital-farms-are-soaring">Egg Hyperinflation Could Spike Grocery Prices: Why Cal-Maine, Vital Farms Are Soaring</a>
Photo: Shutterstock

Mortgage Rates Drop Present Opportunities For Homebuilders

Owens Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OC#NYSE">OC</a>) reported a&nbsp;23%&nbsp;year-over-year growth in&nbsp;third-quarter&nbsp;net sales to&nbsp;$3.046 billion,&nbsp;marginally beating the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b41768360/owens-corning-delivers-net-sales-of-3-0-billion-generates-net-earnings-of-321-million-and-adjusted" rel="noreferrer noopener">consensus of&nbsp;$3.043 billion</a>.
Sales by segments: Composites&nbsp;$534&nbsp;million&nbsp;(-6%), Insulation&nbsp;$946&nbsp;million&nbsp;(+4%), and Roofing&nbsp;$1.1 billion&nbsp;(relatively&nbsp;flat).
Doors reported revenue in its first full quarter, with&nbsp;net sales of&nbsp;$573 million. The company noted that market conditions remained challenging for this business, with decreased discretionary repair and remodel spending impacting demand and price.
Adjusted EPS was&nbsp;$4.38, up from&nbsp;$4.18 a year ago,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">above the consensus of&nbsp;$4.05.</a>
Adjusted EBIT increased to $582 million from $518 million, with a 19% margin (vs. 21% prior-year quarter). Adjusted EBITDA rose 19% to $766 million, and the margin contracted to 25% from 26% a year ago quarter.
Operating cash flow totaled $699 million, up from $691 million, and free cash flow stood at $558 million (-4%). During the third quarter, the company returned $252 million through dividends and share repurchases.
Executive Vice President and Chief Financial Officer Todd Fister said, &#8221;We also executed a $200 million share repurchase program that delivered on our commitment to return significant cash to shareholders.&#8221;
Q4&nbsp;Outlook: Despite tougher market conditions, the company anticipates strong performance driven by portfolio and cost structure changes.
The company expects net sales growth of around 20%, with legacy business revenue slightly below fourth-quarter FY23, plus <a href="https://www.benzinga.com/calendars/guidance">added revenue from the Doors segment.</a>
The company forecasts a mid-teens EBIT margin and an EBITDA margin of about 20% for the fourth quarter of FY24.
Owens Corning expects near-term demand to be impacted by ongoing challenging conditions in most markets and normalizing seasonality.
2024&nbsp;Outlook: Owens Corning currently expects general corporate expenses of around $250 million (vs.&nbsp;$255 million-$265 million&nbsp;prior) and <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">capital additions of ~$650 million</a>.
Investors can gain exposure to the stock via SPDR Series Trust SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) and SmartETFs Sustainable Energy II ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOLR#NYSE">SOLR</a>).
Price Action: OC shares traded lower by 4.11% at $175.05 premarket at the last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41317881/hurricane-milton-to-deliver-2-5b-blow-to-floridas-homebuilding-sector-goldman-sachs" target="_blank" rel="noreferrer noopener">Hurricane Milton To Deliver $2.5B Blow To Florida&#8217;s Homebuilding Sector, Goldman Sachs Says</a></li>
</ul>

Earnings

Guidance

Movers

SOLR

Owens Corning Delivers Q3 Earnings Beat, Forecasts Strong Q4 Despite Market Headwinds

Wall Street is on track for its third consecutive day of losses as investors grow cautious about risky assets, awaiting more clarity on U.S. fiscal and monetary policies and scrutinizing the latest <a href="https://www.benzinga.com/earnings">batch of corporate earnings.</a>
Both equities and commodities took a hit on Wednesday, while the U.S. dollar gained strength, attracting investor flows as traders moved to safer cash positions.
The U.S. dollar index, as tracked by the the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rose 0.5%, reaching levels last seen in late July. 
At midday in New York, the S&amp;P 500 was down 0.7%, attempting to hold support around the 5,800-point level. The Dow Jones also dropped 0.7%, and tech stocks, along with small caps, fared worse, sliding by 0.9%.
On the data front, mortgage applications declined for the fourth straight week, reflecting continued pressure <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41488744/mortgage-applications-fall-for-fourth-straight-week-as-high-rates-squeeze-homebuy">from elevated borrowing costs.</a>
Existing home sales fell by 1% in September to a seasonally adjusted annualized rate of 3.84 million, the lowest level since October 2010. This follows an upwardly revised 3.88 million in August and missed forecasts of 3.9 million.
Despite weak housing data, real estate stocks showed surprising resilience. The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) moved higher after two straight sessions of losses.
Gold prices, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), fell more than 1%, pulling mining stocks down with it. Silver plummeted over 3%, retreating from 12-year highs reached on Tuesday.
Oil prices slipped by 1%, while Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) tumbled 2%. 
<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,815.02</td>
<td>-0.7%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,625.59</td>
<td>-0.7%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,213.10</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,196.24</td>
<td>-0.9%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated 12:00 p.m. ET </figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent102224&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.6% to $579.72.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.7% lower to $426.41.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1% to $491.16.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.7% $219.80.</li>
<li>The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, up 0.6%. The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) lagged, down 1%.</li>
</ul>
<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>
<ul>
<li>Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) fell 2.4% after reporting a worse-than-expected losses<a href="https://www.benzinga.com/news/earnings/24/10/41486950/boeing-q3-earnings-revenue-and-profit-decline-cultural-challenges-ceo-ortberg-vows-transformation"> last quarter</a>.</li>
</ul>
Other stocks reacting to earnings included:
<ul>
<li>Texas Instruments Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), up 3.5%.</li>
<li>Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>), up 3.9%.</li>
<li>Seagate Technology Holdings PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>), down over 7%.</li>
<li>Packaging Corporation of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKG#NYSE">PKG</a>), up over 6%.</li>
<li>Manhattan Associates Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MANH#NASDAQ">MANH</a>), down over 7%.</li>
<li>East West Bancorp. Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EWBC#NASDAQ">EWBC</a>), up over 7%.</li>
<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>), down over 13%.</li>
<li>Coca-Cola Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), down 2.2%. </li>
<li>Thermo Fisher Scientific Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMO#NYSE">TMO</a>), down 2.9%.</li>
<li>NextEra Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), down 0.1%. </li>
<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), up 3.8%. </li>
<li>Boston Scientific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>), down 3.7%. </li>
<li>CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>), down 0.9%. </li>
<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), down 1.6%. </li>
<li>Hilton Worldwide Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>), down 2.6%. </li>
<li>Vertiv Holdings LLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>), down 2.8%. </li>
<li>Old Dominion Freight Line Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>), down 4.8%. </li>
</ul>
Large-cap companies reporting earnings after the close include Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), T-Mobile US Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), ServiceNow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), United Rentals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/URI#NYSE">URI</a>), Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>), Raymond James Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>). 
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Wall Street Slumps For Third Straight Day As Investor Sentiment Fades, Dollar Strength Resumes, Boeing Disappoints: What's Driving Markets Wednesday?

Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) CEO Douglas Yearley is expecting the demand for luxury homes <a href="https://www.benzinga.com/news/24/08/40489889/whats-going-on-with-toll-brothers-stock-wednesday">to remain robust</a> into 2025 after his high-end construction company posted solid third-quarter results on Tuesday.
&#8220;With mortgage rates at their lowest point in a year and trending lower, favorable demographics and continuing balance in the supply and demand of homes for sale, we are optimistic that demand for new homes will remain solid through the end of fiscal &#8217;24 and into 2025,&#8221; he said on Wednesday during a conference call with analysts.
He noted that demand was &#8220;uneven&#8221; throughout the quarter as May had a strong start that slowed in June, while July saw the highest demand, particularly in the latter half of the month.
&#8220;We are encouraged by demand trends we are seeing across the country and also across our buyer segments,&#8221; he said.
Demand was especially strong in the states of California, New Jersey, Pennsylvania, South Carolina and in the urban areas of Atlanta, Boise, Las Vegas and Metro D.C., he said.
Toll Brothers posted adjusted EPS of $3.60 that exceeded Wall Street consensus of $3.31 and $2.73 billion in revenue that beat the analyst estimate of $2.71 billion.
Read Also: <a href="https://www.benzinga.com/trading-ideas/previews/24/08/40447261/toll-brothers-q3-earnings-preview-will-kamala-harris-3-million-homes-plan-boost-homebuilde">Toll Brothers Q3 Earnings Preview: Will Kamala Harris&#8217; 3 Million Homes Plan Boost Homebuilder Stocks?</a>
But RBC Capital Markets pointed out that Toll Brothers&#8217; 11% rise in home orders to 2,490 units from a year ago fell well short of its expectation for a 26% jump in orders and Wall Street&#8217;s forecast of a 27% increase in orders. Meanwhile, the company&#8217;s gross margin of 27.6% beat RBC&#8217;s forecast of 26.4% and Street consensus of 26.3%.
&#8220;Net, the miss on orders and beat on GM% were both wider than expected,&#8221; analyst Mike Dahl wrote in a note.
Wedbush Securities noted that Toll Brothers&#8217; orders rose by double-digit percentages in the Midatlantic, South and Mountain regions but fell by single-digit percentages in the North and Pacific regions.
It also pointed out that Toll Brothers&#8217; sales absorption rate, which is the ratio of homes sold to homes available in a market during a period, of 2.1 homes per month was below Wedbush&#8217;s forecast of 2.3 homes per month.
&#8220;We expect absorption to decline to 1.9 orders/month in F4Q24 due to normal seasonality,&#8221; analyst Jay McCanless wrote in a note.
Price Action: Toll Brothers gained 5.62%, to close at $141.03 on Wednesday, along with gains across ETFs in the sector.
<ul>
<li>Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEZ#NASDAQ">PEZ</a>) rose 2.33%.</li>
<li>IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) went up 2.6%.</li>
<li>IShares Focused Value Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FOVL#NYSE">FOVL</a>) gained 0.52%.</li>
<li>Themes US Small Cap Cash Flow Champions ETF (NASDFAQ: SMCF) edged up 0.64%.</li>
<li>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) rose 2.9%.</li>
</ul>
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</ul>
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Demand For High-End Homes 'Will Remain Solid' Into Next Year, Says Toll Brothers CEO

Vice President Kamala Harris laid out a plan to lower costs for middle-class Americans with a focus on food costs, home ownership costs and health care costs during a speech in swing state <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">North Carolina Friday.</a>
Improve the Economy: Harris laid out a plan to improve the economy and life for the middle class, which remains a top priority for voters in<a href="https://www.benzinga.com/general/politics/24/08/40407829/harris-vs-trump-vice-president-leads-2024-election-by-4-points-shows-strong-support-from-voters-"> 2024 election polls.</a>
"Our country has come a long way," Harris said.
Harris stated that when she and President Joe Biden took office, millions of people were out of work, and they helped orchestrate one of the largest economic comebacks.
"Our economy is the strongest in the world."
As president, Harris said she will be "laser focused" on building what she called an "opportunity economy."
The opportunity economy will be one where everyone has a fair chance to compete, succeed, and build wealth for themselves and their children.
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</ul>
Lowering Costs: Harris said a main priority as president of the United States will be lowering costs and building on the foundation of progress already in place.
"Costs are still too high," Harris said.
Harris said a family's salary should be enough to provide a good quality of life.
Her speech focused on the middle-class American, which she called an "essential" part of the country.
The vice president said no child should grow up in poverty, and workers should be able to retire with dignity after years of hard work.
"I grew up in a middle-class household."
Harris recalled her time working at McDonald's during college, earning spending money while some of her coworkers were supporting their families, often working their second or third job.
"As president, I will take on the high costs that matter most."
Harris said food companies are seeing their highest profits in two decades, and some companies are not playing by the rules.
"We need to take action when that is the case."
Harris said she will go "after the bad actors" and work on price-gauging acts.
"We will help the food industry become more competitive."
Trump's tax plan is a national sales tax, Harris told the crowd.
"That will devastate Americans."
Harris said Donald Trump will tax everyday products and necessities that are imported, raising costs for gas, food, clothing, and over-the-counter medication.
The vice president said economists estimate the typical family would pay $3,900 more a year under the Trump tax plan.
Harris said she will continue progress on lowering medical costs, which includes capping the cost of insulin and lowering prescription drug costs for seniors.
Food companies could be on watch with Harris' latest comments, with a focus on passing cost savings on to consumers and not having high profit margins. The Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) tracks many of the top food stocks.
Home Ownership: Another strategic priority from Harris centered on homeownership, with a goal of building three million new homes for sale or rent for the middle class during her "first term" as president.
Harris recalled her family renting homes for most of her life before her mother was able to buy a home. The vice president called homeownership a symbol of pride that comes with hard work and provides financial security.
Homeownership is "out of reach" for many American families, Harris said. A housing shortage is one of the key reasons, the vice president added.
Harris shared that she will work to make a $25,000 credit for first time homebuyers on the purchase of a new home.
"We can do this."
Harris said Trump's plan will add around $1,200 a year to the typical American mortgage.
"He's got it backward."
Homebuilder companies like Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) could become popular with investors under a Harris presidency and the call for millions of new homes. The SPDR Series Trust Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) offers exposure to homebuilder stocks.
Tax Cuts: Harris said she will restore two tax cuts that help 100 million or more middle class Americans.
The vice president said the earned income tax credit and child tax credit will allow millions of Americans to keep more income.
"We know this works," Harris said.
Part of the plan calls for $6,000 in tax relief for parents during the first year of a child's life.
Harris said Trump's plan for tax cuts involves handing cuts to billionaires and corporations.
"Look who they fight for. Donald Trump fights for billionaires."
Harris added that Trump's plans will "devastate the middle class."
SPY Price Action: The SPDR S&amp;P 500 ETF Trust is up 0.2% to $554.30 on Friday.
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Photo: Screenshot from CSPAN.

Harris Warns Trump Tax Plan Will 'Devastate Americans,' Vows To Go After 'Bad Actors' Behind Food Prices

Vice President Kamala Harris&#8217; campaign disclosed <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">policy proposals regarding the residential housing market </a>ahead of the Democratic Party candidate&#8217;s unveiling of her economic policy at an event in the key swing state of North Carolina. 
Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages. Among the policy proposals are:
<ul>
<li>Construction of three million new housing units to plug in the shortage in housing supply in the first four years.</li>
<li>Expanding the existing tax incentives for builders to build affordable rental housing.</li>
<li>Offering first-ever tax incentives for building starter homes.</li>
<li>Setting up a new federal fund to spur innovative housing construction.</li>
<li>A $25,000 down-payment support for first-time homeowners.</li>
</ul>
The Harris campaign also looks to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Here&#8217;s how the homebuilder stocks are trading in premarket trading, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data</a>:
<ul>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) climbed 3.2% to $82.65.</li>
<li>Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) gained 2.1% to $131.64.</li>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) added 0.30% to $175.81.</li>
<li>PulteGroup, Inc. (PHM) rose 0.39% to $123.</li>
</ul>
See Also:&nbsp;<a href="https://www.benzinga.com/money/best-home-builder-stocks" target="_blank" rel="noreferrer noopener">Best Home Builder Stocks</a>
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Homebuilding Stocks On Investors' Radar After Kamala Harris Reveals Plan To Boost Housing Market

Taking on price gouging and thrusting on sagging residential construction will likely be part of the agenda of a potential Democratic administration under Kamala Harris, according to a statement released by the Harris-[Tim] Walz campaign team. The statement is a prelude to Harris&#8217; first major economic speech scheduled to be made at a campaign rally in Raleigh, North Carolina on Friday.
Accent On Housing: Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages, excerpts of the statement shared on X <a href="https://x.com/search?q=HARRIS+CAMPAIGN&amp;src=typed_query&amp;f=top">showed. </a>The team said it looks forward to constructing three million new housing units to plug in the shortage in housing supply in the first four years, with involvement from both workers and the private sector. 
The Democrats under Harris will likely seek to expand the existing tax incentives for builders to build affordable rental housing, offer first-ever tax incentives for building starter homes and set up a new federal fund to spur innovative housing construction.
The team also plans to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Harris also proposed a $25,000 down-payment support for first-time homeowners, which will likely benefit four million first-time buyers over four years.
Harris&#8217; focus on housing as a key agenda comes at a time when homebuyers are disadvantaged by rising home rentals and higher home ownership costs, which is seen as a function of higher interest rates and the imbalance in housing supply and demand.
See Also: <a href="https://www.benzinga.com/money/best-home-builder-stocks">Best Home Builder Stocks</a>
Food Prices: Harris also suggested if elected, she would announce the &#8220;first-ever federal ban&#8221; on food price hikes, vesting federal authorities with sweeping powers to clamp down, the Washington Post <a href="https://www.washingtonpost.com/business/2024/08/15/kamala-harris-economic-policy-2024/">reported</a>, citing the statement released by the campaign.
This will set &#8220;clear rules of the road to make clear that big corporations can't unfairly exploit consumers to run up excessive corporate profits on food and groceries,&#8221; the statement reportedly said.
The Post reported that the vice president&#8217;s plan marks a further escalation in the economic populism of President Joe Biden.
Will Harris Go Further Left? The Biden administration went far left in terms of its policies, ranging from antitrust, trade, labor rights, industrial policy and also bypassed party consensus, with the government intervening in nearly every facet of the nation's economy, the Post said.
The vice president will largely tow in line with Biden&#8217;s policies, the report said, adding that apart from advancing her pet themes of care agenda, she would also be pro-union. 
One aspect in which she will diverge from Biden is how she approaches businesses, the report said, citing her meeting with JPMorgan&#8217;s Jamie Dimon in March. Zach Butterworth, who led private sector engagement for the White House and is currently a Lafayette Advisor, reportedly said, &#8220;Her team is smart to acknowledge there's a buildup of pressure in parts of the business community and it's worth talking to them. She knows they're an important voice.&#8221;
There are conflicting views regarding Harris&#8217; stance on anti-trust policy. While left-wingers within the party have called upon her to stand behind Federal Trade Commission&#8217;s Lina Khan, the vice president&#8217;s ties with tech executives could sway her toward a more lenient approach, it added. As recently as this week, rumors abound about search giant Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) being on the brink of being broken up amid FTC&#8217;s crusade against it due to its search dominance.
Harris&#8217; stances on cryptocurrencies will also be in the spotlight, given the current misgivings of the industry toward SEC Chair Gary Gensler&#8217;s tough position. 
The vice president has already made it clear she is for the elimination of taxes on tips &#8211; a <a href="https://www.benzinga.com/news/24/06/39244008/trump-pitches-plan-to-scrap-tax-on-tips-in-nevada-rally-culinary-union-responds-wild-campaign-promis">stance Trump also shares. </a>
Harris&#8217; campaign did a flip-flop on fracking, suggesting that the vice president is not against a total ban on it. Her team has also hinted at going back on banning cash bail, which facilitates the release of criminals by setting very low bail amounts, as well as healthcare, immigration and gun control, ABC News<a href="https://abcnews.go.com/US/wireStory/marijuana-death-penalty-fracking-common-harris-shifted-positions-112884794"> said.</a>
The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.79% to $110.97 on Thursday, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a> The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which ended Thursday&#8217;s session up 1.71% at $553.07, rose 0.17% in premarket trading on Friday.
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40410895/anthony-scaramucci-says-kamala-harris-poll-numbers-are-driving-market-higher-predicts-ro">Anthony Scaramucci Says Kamala Harris&#8217; Poll Numbers Are Driving Market Higher, Predicts &#8216;Rough 81 Days&#8217; Ahead For Trump</a></li>
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Ahead Of Kamala Harris' First Economic Policy Speech In North Carolina, Campaign Provides Sneak-Peek: Focus On Perking Up Residential Construction And Food, Grocery Price Hike Ban

Mortgage rates fell to their lowest levels in over a year this week, spurred by rising market expectations of interest rate cuts by the Federal Reserve, bringing some much-needed <a href="https://www.benzinga.com/topic/real-estate-investing">relief to U.S. homebuyers.</a>
As of Aug. 7, the average 30-year fixed mortgage rate dropped by 26 basis points from the previous week, settling at 6.47%. This is the lowest rate since late May 2023, according to Freddie Mac data released on Thursday.
Similarly, the average 15-year fixed mortgage rate fell by 36 basis points from the previous week to 5.63%, the lowest level since April 2023.
&#8220;The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move,&#8221; Freddie Mac highlighted.
Additionally, this decrease in rates is already benefiting existing homeowners. The refinancing share of mortgage applications has climbed to nearly 42%, the highest since March 2022.
Read Also: <a href="https://www.benzinga.com/money/how-to-invest-in-real-estate">How To Invest in Real Estate In 2024</a>
<h3 class="wp-block-heading">Goldman Sachs Sees Home Prices Rising: Fed Rate Cuts Likely to Fuel Appreciation</h3>
&#8220;Bad news is (likely) good news for home price appreciation,&#8221; wrote Goldman Sachs analyst Vinay Viswanathan in a note Thursday, highlighting the investment bank&#8217;s optimistic outlook for the housing market.
Goldman Sachs has upwardly revised its forecasts for home price appreciation (HPA) in 2024 and 2025. The bank now expects full-year 2024 HPA to reach 4.5% and 2025 HPA to come in at 4.4%. These projections are notably higher than their previous forecasts of 4.2% and 3.2%, respectively.
The bullish outlook is underpinned by Goldman Sachs economists&#8217; prediction that the Federal Reserve will implement three rate cuts this year, each by 25 basis points. 
These anticipated cuts are expected to bring the 30-year conforming mortgage rate down to 6.5% by the end of 2024 and 6.1% by the end of 2025. These figures are slightly lower than the bank&#8217;s previous forecasts of 6.6% and 6.3%, respectively.
<h3 class="wp-block-heading">Mortgage-Linked Stocks Rally</h3>
The positive sentiment surrounding the recovery of the property market extended to mortgage-linked stocks. 
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which tracks stocks exposed to the residential property market, rose 0.6% on Thursday. 
Other sector funds, such as the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) and the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), saw gains of 0.9% and 0.8%, respectively.
Individual stocks in the mortgage business showed robust performance, with Rocket Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) and UWM Holdings Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) up by 3.3% and 4.5%, respectively.
Shares of companies involved in home construction also experienced a boost. The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.6%.
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</ul>
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Mortgage Rates Fall To Lowest Level In Over A Year, Ease Pressure On Homebuyers: 'Good News For Home Price Appreciation'

After a turbulent week in the markets, the bulls reclaimed dominance on Wall Street during Friday&#8217;s session, with indices and sectors trading in positive territory as investors welcomed the latest corporate earnings results and further confirmation of inflation progressing toward <a href="https://www.benzinga.com/topic/interest-rates">the Fed&#8217;s 2% target.</a>
In June, the Personal Consumption Expenditure price index – the Fed&#8217;s preferred measure of inflation – dropped to 2.5% year-on-year, as anticipated, marking the lowest level since February 2021. The core component slightly exceeded expectations, remaining <a href="https://www.benzinga.com/top-stories/24/07/39987142/feds-favorite-inflation-gauge-keeps-falling-but-fed-wants-durable-downward-trend-economist-says">steady at 2.6% annually.</a>
Investors are unwavering in their expectations for a Fed interest rate cut in September, assigning it a 100% probability and factoring in nearly three cumulative rate cuts by year-end.
The Dow Jones Industrial Average led the charge on Friday, with the blue-chip index surging 1.9%, setting the stage for its strongest session this year. The tech-heavy Nasdaq 100 rebounded significantly, climbing 1.6%, which halted the tech sector&#8217;s decline but wasn&#8217;t enough to reverse a negative weekly close. 
The Russell 2000, as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), also posted a solid gain of 1.3%.
Rate-sensitive sectors continued their rally, with homebuilders, as tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>), rising over 3% for the day, reaching all-time highs and marking their third <a href="https://www.benzinga.com/markets/equities/24/07/39988310/homebuilder-stocks-rally-to-record-highs-on-rate-cut-frenzy-but-housing-sales-still-struggle">consecutive positive weekly close.</a>
In the bond market, Treasuries rose as yields dipped slightly, especially in longer-dated maturities.
Gold also rallied, increasing by 1%, while oil prices dropped by 1%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2.5%, marking its second consecutive positive session after three negative ones.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,712.07</td>
<td>1.9%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,483.84</td>
<td>1.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,116.90</td>
<td>1.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,252.38</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent072524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.5% higher to $546.75.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 2% to $407.34.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) rose 1.5% to $465.21.</li>
<li>Sector-wise, the Industrials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)&nbsp;outperformed, up by 2.3%, while the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, up 0.5%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
Stocks moving on earnings were:
<ul>
<li>3M Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>), up 19%. </li>
<li>Aon plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AON#NYSE">AON</a>) up 6.4%. </li>
<li>Avantor Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVTR#NYSE">AVTR</a>) up 12%.</li>
<li>Barnes Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/B#NYSE">B</a>), down 3%.</li>
<li>BJ&#8217;s Restaurants, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BJRI#NASDAQ">BJRI</a>), down 12%.</li>
<li>Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) down 10%. </li>
<li>Boyd Gaming Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYD#NYSE">BYD</a>), up 5.4%.</li>
<li>Bristol-Myers Squibb Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>), up 9.7%. </li>
<li>Centene Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) up 9.8%. </li>
<li>Charter Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) up 16.2%.</li>
<li>Colgate-Palmolive Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CL#NYSE">CL</a>) up 3.7%. </li>
<li>Deckers Outdoor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>) up 7.9%.</li>
<li>DexCom, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXCM#NASDAQ">DXCM</a>) down 42%. </li>
<li>Franklin Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEN#NYSE">BEN</a>) up 1.9%.</li>
<li> Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>) flat. </li>
<li>Mohawk Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHK#NYSE">MHK</a>) up 19%. </li>
<li>Newell Brands Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWL#NASDAQ">NWL</a>) up 39%. </li>
<li>Saia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAIA#NASDAQ">SAIA</a>) down 20%. </li>
<li>SkyWest, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKYW#NASDAQ">SKYW</a>) down 6.5%. </li>
<li>T. Rowe Price Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROW#NASDAQ">TROW</a>) down 2.8%. </li>
<li>VeriSign, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSN#NASDAQ">VRSN</a>) up 3.3%. </li>
</ul>
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<li><a href="https://www.benzinga.com/markets/equities/24/07/39970069/investors-go-all-in-on-small-caps-pour-over-6-billion-into-russell-2000-etf-this-month-they-will">Investors Go All In On Small Caps, Pour Over $6 Billion Into Russell 2000 ETF This Month: They &#8216;Will Return To Larger-Cap Alternatives,&#8217; Veteran Analyst Says</a></li>
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Wall Street Enjoys Late-Week Rally On Benign Inflation Data, Dow Jones Eyes Best Session Of 2024, Tech Unwinding Stalls: What's Driving Markets Friday?

Mortgage rates are on a steady decline as investors have cemented expectations for upcoming reductions in the federal funds rate, yet mortgage demand continues to <a href="https://www.benzinga.com/topic/real-estate-investing">depict challenges among homebuyers. </a>
The Mortgage Bankers Association has reported Wednesday that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) dropped by 5 basis points to 6.62% for the week ending July 19, 2024. 
This marks the lowest borrowing cost for home purchases since early February 2024.
Despite the decline in mortgage rates, long-term Treasury yields remained stable last week. The 30-year Treasury yield has held steady between 4.20% and 4.25% over the past week.
Market expectations for a 25 basis point rate cut in September hover at 100%, remaining unchanged from the previous week, according to the CME FedWatch Tool. 
<h3 class="wp-block-heading">Bumpy demand for mortgages</h3>
Despite the decline in mortgage rates, mortgage demand has shown some setbacks. While the <a href="https://www.benzinga.com/real-estate/reit/24/07/39816656/fed-rate-cut-expectations-drop-mortgage-rates-to-4-month-lows-surge-in-new-applications-refinanc">previous week&#8217;s drop in mortgage rates </a>spurred a sharp rise in new mortgage and refinancing applications, these trends were more subdued last week.
Mortgage applications fell by 2.2% week-over-week, while the refinance index edged up by 0.3% to 614.9, hitting the highest level since mid-August 2022.
On Tuesday, the National Association of Realtors reported a significant 5.4% decline in existing home sales for June. This drop is likely due to rising buyer apprehensions as median home prices reach new all-time highs. 
Jeffrey Roach, chief economist for LPL Financial, commented on the situation, stating, &#8220;The low supply of homes and high interest rates have depressed affordability to near-term lows. Because of the tight supply of homes available for sale, median prices continue to rise. We should not expect this dynamic to improve until mortgage rates drop and supply increases.&#8221;
<h3 class="wp-block-heading">Market Reactions</h3>
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) was flat during the premarket trading session on Wednesday, following a 1% rise on Tuesday.
The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) fell 0.5% at the time of this writing, while the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) rose 0.5%. 
The worst performers in the premarket among real estate stocks were: 
<ul>
<li>Gladstone Land Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAND#NASDAQ">LAND</a>) down 3.96%.</li>
<li>Compass, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COMP#NYSE">COMP</a>) down 3.96%.</li>
<li>Service Properties Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SVC#NASDAQ">SVC</a>) down 3.47%.</li>
<li>Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>) down 2.71%.</li>
<li>Office Properties Income Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NASDAQ">OPI</a>) down 1.48%. </li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/markets/24/07/39920377/us-home-sales-see-sharpest-monthly-decline-in-1-5-years-as-record-high-prices-keep-buyers-on-the-sid">US Home Sales See Sharpest Monthly Decline In 1.5 Years As Record High Prices Keep Buyers On The Sideline</a></li>
</ul>
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COMP

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Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts

As <a href="https://www.benzinga.com//node/39583371">cities in the U.S. continue to break their historical heat records</a>, workers, lawmakers and businesses across the country are launching a debate: should the state grant protections for workers in extreme heat conditions?
Most of the country has been under heat alerts since rising temperatures began breaking comfortable levels in early July.
On Tuesday, meteorologists began warning people living in Midwestern and East Coast states. An upcoming heat wave is expected to break records in many cities, putting 140 million Americans under heat alert.
Earlier this month, at least 50 cities saw their historical heat records broken by a heat wave that affected most of the Southwest. Palm Springs, California and Las Vegas reached 124 and 120 degrees Fahrenheit, respectively, <a href="https://www.usatoday.com/story/news/weather/2024/07/11/temperature-records-heat-wave-west/74372547007/">USA Today </a>reported.
Many cities and localities in the East Coast are expected to surpass their historical average highs on this week.
The trend is global, with the last 13 months marking the highest temperatures on record for that month, according to official EU data from the Copernicus Programme.
The upcoming heat wave in the U.S. is expected to be dangerously lethal. At least 28 people have died this summer due to extreme heat events, according to a <a href="https://www.washingtonpost.com/climate-environment/2024/07/10/heat-wave-us-death-toll/">report</a> by the Washington Post.
<h3 class="wp-block-heading">Should Workers Have Federal, State Protections For Heat Risk?</h3>
Rising temperatures across the globe are forcing people to change their living habits, including how many hours of the day they can spend outside without air conditioning.
This has serious consequences for work, especially in sectors that require workers to be exposed to high temperatures under the sun for an extended period of time.
These encompass delivery and postal workers, the construction and agriculture sectors as well as those working in infrastructure repairs and gardening in urban environments, among others.
Read Also: <a href="https://www.benzinga.com//node/39799850">5 Things You Might Not Know About J.D. Vance: &#8216;Hillbilly Elegy&#8217; Author, Bitcoin Holder, First Millennial VP Pick And More</a>
Health risks for workers include "heat exhaustion and heat stroke, occupational injuries from high heat exposure such as burns or falls from dizziness, and exacerbation of preexisting conditions such as asthma, kidney disease, or heart disease," according to reports by the Center for Disease Control and the Occupational Safety and Health Administration (OSHA).
Earlier this month, the Biden administration proposed a new rule that, for the first time, could introduce protections for workers exposed to health risks due to rising heat levels, whether outdoors or indoors.
The proposal comes from OSHA, and outlines actions that employers should take to protect their employees from heat risks. If finalized, the rule could add protections for 35 million employees nationwide.
"The purpose of this rule is simple. It is to significantly reduce the number of work-related deaths, injuries and illnesses suffered by workers who are exposed to excessive heat and exposed to these risks while simply doing their jobs," an administration official told reporters on a press call, <a href="https://www.washingtonpost.com/climate-environment/2024/07/02/osha-workers-extreme-heat-protections/">according</a> to the Post.
The rule would introduce actions that employers must fulfill if the weather passes two specific temperature marks. Above 80 degrees Fahrenheit, employers must offer drinking water and break areas, as well as plan out the work schedule in an incremental rhythm for the bodies of workers to adapt to the heat.
At 90 degrees, employees must be monitored for signs of heat illness and take mandatory 15-minute breaks every two hours.
No federal heat protection law is in place, and only five states exercise worker safety precautions: California, Colorado, Minnesota, Oregon and Washington.
The timeline for OSHA's proposal would make it final by 2026. Its rollout will largely <a href="https://www.benzinga.com/general/politics/24/07/39780356/trumps-2024-election-betting-odds-hit-record-high-after-assassination-attempt-payouts-for-ex-pre">depend on who wins the U.S. presidency in November</a>. A victory for Donald Trump would likely threaten its existence.
High-profile Republicans have voiced opposition to worker protections for heat risk. Republicans have traditionally stood against policies related to climate change that are liable to impact businesses or industries.
In Florida, where some of the highest temperatures in the country have registered in recent years, Gov. Ron DeSantis, a Republican, recently signed a piece of legislation barring local governments from raising protections for workers exposed to heat.
Texas had passed a similar bill the previous year, which was dubbed the "Death Star law." The bill was ruled unconstitutional by a judge, after Houston, El Paso and San Antonio presented lawsuits against it.
<h3 class="wp-block-heading">Industry Impacts</h3>
Progressive voices like the Center for American Progress have written that exposing workers to heat risk can have bad consequences for the economy, including "lost worker productivity, increased health care costs and worker compensation claims, and threats to workers' financial stability from missing work."
For conservatives, adding protections for workers can reduce productivity for businesses and lead to a loss in competitiveness.
Business groups lobbying against the OSHA rule argue that trigger temperatures proposed by the rule should not be set as a blanket policy nationwide, as workers from different parts of the country have different tolerance thresholds for heat.
For workers in Florida, "an 80-degree threshold for them isn't going to be considered hot," said Prianka Sharma, vice president and counsel for regulatory affairs for The American Road &amp; Transportation Builders Association.
Multiple ETFs follow industries that can be affected by changes in policy around heat risk.
iShares US Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) is the largest ETF by total assets following the construction industry. It's followed by SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) and the Invesco Building &amp; Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKB#NYSE">PKB</a>).
Agriculture is another major sector that affected by the heat issue. The Invesco DB Agriculture Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBA#NYSE">DBA</a>) leads the list by total assets, with Teucrium Wheat Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEAT#NYSE">WEAT</a>) and First Trust Alternative Absolute Return Strat ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FAAR#NASDAQ">FAAR</a>) next.
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Shutterstock image.

Scorching Heat Breaks Records, But 2024 Election Outcome May Hold Worker Protections Hostage

The larger-than-expected drop in the June Consumer Price Index inflation rate has fueled market expectations for interest rate cuts <a href="https://www.benzinga.com/topic/interest-rates">by the Federal Reserve.</a>
Investors no longer seem to have doubts and are assigning a 91% implied probability that rate cuts will begin as early as September 2024.
The upcoming Producer Price Index (PPI) inflation report, scheduled for release on Friday at 8:30 a.m. ET, will be crucial in determining whether producer price trends can continue to support rate-cut expectations or temper the optimism.
<h3 class="wp-block-heading">June PPI Preview: What Economists Expect</h3>
<ul>
<li>Producer prices in June are expected to rise 0.1% on the month versus an unexpected 0.2% decline in May, according to economist consensus estimates, as tracked by TradingEconomics. </li>
<li>On an annual basis, the PPI inflation is expected to accelerate from 2.2% to 2.3%.</li>
<li>Excluding food and energy, core PPI is expected to advance by 0.2% month-over-month, accelerating from the previous flat reading. </li>
<li>Annually, core producer prices are set to rise by 2.5%, up from 2.3% in May. That would mark the highest annual core producer inflation rate since August 2023. </li>
</ul>
<h3 class="wp-block-heading">5 ETFs To Watch Friday</h3>
On Thursday, traders favored markets poised to gain <a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">from future rate cuts,</a> investing in sectors that could benefit from reduced borrowing costs, while penalizing assets that had already heavily discounted expectations of monetary policy shifts.
The producer inflation data will be pivotal in evaluating if this market momentum will persist. 
Among Thursday&#8217;s top-performing exchange-traded funds, we can definitely mention:
<ul>
<li>SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) rallying 6.1%</li>
<li>Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) rising 4.4%</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) up 4.2%</li>
<li>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 3.6%</li>
<li>VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) up 2.9%</li>
</ul>
Read now: 
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<li><a href="https://www.benzinga.com/general/politics/24/07/39731800/biden-cheers-inflation-progress-rate-cut-chorus-grows-louder-among-5-economists-this-is-just-wha">Biden Cheers Inflation Progress, Rate Cut Chorus Grows Louder Among 5 Economists: &#8216;This Is Just What The JayMan Needed&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Could June Producer Inflation Data Dampen Market Enthusiasm For Rate-Cut Winners? 5 ETFs To Watch Friday

A lower-than-expected inflation report for June caused wild market reactions, leading to a surge in traders&#8217; expectations of Federal Reserve rate cuts and boosting assets that are particularly <a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">sensitive to high interest rates.</a>
As the annual inflation rate slowed from 3.3% to 3%, below the predicted 3.1%, and the monthly reading indicated the first contraction (-0.1%) in four years, traders swiftly increased their odds of a September rate cut, now placing a 92% chance.
Surprisingly, large-cap indices such as the S&amp;P 500 and the tech-heavy Nasdaq 100 index fell, dropping 0.9% and 2.1% respectively, with the latter eyeing its worst daily performance of 2024, previously seen on April 30. These reactions suggest that market participants had likely already priced in rate cut expectations into tech stock valuations and are now rotating from top-performing sectors to laggards.
The outperformance of the S&amp;P 500 real estate sector over tech by more than 5 percentage points marked the largest one-day relative change in over four years, indicating a potential sectoral shift.
Other assets making significant moves included small caps, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 3.3%, its strongest one-day return since mid-December 2023; gold, up 1.7%; and long-dated Treasury bonds, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rallying 1.5%.
Equity industries showing notable growth were those positively impacted by the prospects of lower interest rates. Homebuilders, tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>), were up 6.7% for the day, their strongest one-day performance since mid-December 2023. Regional banks, represented by the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), rose 3.4%. Gold miners, tracked by the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), climbed 2.4%, on track for their highest close since April 2022.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was flat at $57,800. 
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,120.27</td>
<td>3.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,754.72</td>
<td>0.1 %</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,583.95</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,246.76</td>
<td>-2.1%</td>
</tr>
</tbody>
</table>
</figure>
Updated at 1:05 PM ET
According to&nbsp;<a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent100924&amp;t=be2bearmibe3na1">Benzinga Pro&nbsp;data</a>:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.9% lower to $556.201.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.1% higher to $397.59.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) tumbled 2.1% to $492.83.</li>
<li>Sector-wise, the&nbsp;Real Estate&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)&nbsp;outperformed, up by 2.5%, while the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, falling 2.4%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
<ul>
<li>Tesla Inc. (TSLA) fell over 6%, after Bloomberg flagged delays in the Robitaxi project. </li>
<li>Top-performers within real estate stocks were Communications Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBA#NYSE">SBA</a>) Alexandria Real Estate Equities, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARE#NYSE">ARE</a>), both up 6.5%. </li>
<li>PepsiCo Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NYSE">PEP</a>) was 0.4% higher, following quarterly earnings. </li>
<li>Other stocks reacting to earnings were Delta Air Lines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), ConAgra Brands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAG#NYSE">CAG</a>), up 0.4% and down 2% respectively. </li>
<li>Caesars Entertainment Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NASDAQ">CZR</a>) rose 6.7%. </li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">Inflation Data Sparks Rush For Gold, Real Estate, Treasuries, Yen: Traders See September Rate Cut As Done Deal</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Forex

Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What's Driving Markets Thursday?

The stars seem to be aligned for a reduction in U.S. interest rates in about two months, as the June inflation report released Thursday may provide policymakers with the confidence that annual consumer price changes are finally trending <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39728268/inflation-slows-more-expected-to-3-in-june-heightens-expectations-for-rate-cuts-t">toward the Fed&#8217;s 2% target.</a>
The inflation rate fell from 3.3% in May 2024 to 3% year-over-year in June 2024, the lowest since April 2021, according to the Bureau of Labor Statistics. The outcome fell short of the estimated 3.1%. On a month-over-month basis, the consumer basket contracted by 0.1%, marking the first negative reading since May 2020. 
The data sparked a surge in rate cut bets, triggering a rally in interest-rate-sensitive assets.
Market-implied odds for a September rate cut increased from 71% to 91% following the inflation report, according to the CME Group&#8216;s FedWatch tool. Additionally, the implied cuts by year-end rose to 65 basis points, suggesting between two and three rate cuts.
<h3 class="wp-block-heading">Investors Flock To Bonds, Low-Yield Currencies, Real Estate Stocks As Rate Cut Bets Rise</h3>
Yields on two-year Treasury notes tumbled 10 basis points to 4.51% at 11 a.m. ET, on track to hit the lowest since March. 11. Yields on long-dated Treasuries also fell markedly, sending the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) up by 1.2%.
The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), fell 0.6%, on track for the worst session since mid-May.
The low-yielding Japanese yen, tracked through the Invesco CurrencyShares Japanese Yen Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXY#NYSE">FXY</a>), rose 1.8%. The dollar-yen pair dropped to 158.73, marking the second-worst session year-to-date, as traders speculated that a potential Bank of Japan intervention accelerated the move, although authorities did not officially confirm it.
Gold prices, as monitored through the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), rallied 1.9% to $2,415 per ounce, marking the best-performing session since mid-December 2023 and nearing all-time highs.
The broader stock market fell, with the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), falling 0.4%, and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 1.4%. Rate-sensitive equity sectors and industries reacted differently Thursday, with real estate stocks outperforming.
The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) rose 2.5% by 11 a.m. ET, outperforming all other S&amp;P 500 sectors.
Among industries, homebuilders, as tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) soared 5.4%, on track for their best day since mid-December 2023. 
Chart: Rate-Sensitive Assets Rally After Cooler-Than-Expected June Inflation Report
<figure class="wp-block-image size-large"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="596" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-1024x596.png" alt="" class="wp-image-431371" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-1024x596.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-768x447.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-1536x894.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16.png 1810w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Image: <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071124&amp;t=be2bearmibe3na1">Benzinga Pro</a>
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Photo via Shutterstock.

Asia

Currency ETFs

Inflation Data Sparks Rush For Gold, Real Estate, Treasuries, Yen: Traders See September Rate Cut As Done Deal

What is the key to bringing home sale volume up and home prices down? America&#8217;s current problem is insufficient supply, according to a new report outlining trends in the <a href="https://www.benzinga.com/topic/housing-market">U.S. housing market</a>.
The Data: Freddie Mac&#8217;s May macroeconomic <a href="https://www.freddiemac.com/research/forecast/20240516-economic-growth-moderated-start-year?utm_source=www.resiclubanalytics.com&amp;utm_medium=referral&amp;utm_campaign=u-s-housing-market-is-1-5-million-housing-units-below-a-balanced-market-finds-freddie-mac">report</a> examined key trends in the housing and mortgage market.
While 2024&#8217;s <a href="https://www.benzinga.com/top-stories/24/06/39391685/fed-members-cool-on-raising-interest-rates-these-conditions-could-take-months-and-more-likely-quarte">higher-for-longer interest rate</a> environment remains the most obvious obstacle to lowering home prices, the report emphasized supply as a means to restore the market to balance.
According to the report, vacancy rates—a very low 0.8% for housing and 6.6% for renters—must be restored in line with historical averages to make a dent in housing prices. In the first quarter of 2024, the total number of for-sale and for-rent units was 1.5 million below the balanced supply.
Why it Matters: Home prices have reached record levels in 2024. In June, the median sale price of a U.S. home hit an&nbsp;<a href="https://www.benzinga.com/real-estate/24/06/39337282/u-s-home-prices-hit-record-high-as-mortgage-rates-start-to-decline">all-time high</a>&nbsp;of $394,000. The median price for renting has <a href="https://www.benzinga.com/real-estate/23/06/32719718/despite-high-rental-rates-americans-are-putting-off-home-buying-in-record-numbers">also risen steadily</a> in recent months, albeit showing some signs of slowing. 
The rising price of homes has made the American dream of owning a home unsustainable for many Americans, especially members of Generation Z.
Increasing the U.S. housing supply is a logical solution to bringing housing prices down and making shelter affordable for most Americans.
Market Implications: Companies involved in residential construction stand to benefit if there&#8217;s a push to increase housing supply. These include major homebuilders such as D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), Lennar Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and PulteGroup, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>). Increased demand for new housing units could drive up their revenues.
The iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and the SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) are among the largest exchange-traded funds tracking the home construction sector. The iShares U.S. Basic Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYM#NYSE">IYM</a>) tracks materials, some of which are used in construction.
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Image generated using artificial intelligence via Midjourney.

iShares Trust Dow Jones US Basic Materials Sector Index Fund

US Needs 1.5 Million More Homes To Tame Record Prices

A leading market strategist thinks the markets could pause ahead of several key market index events and start of the second half of the year, with stock indexes trading <a href="https://www.benzinga.com/markets/equities/24/06/39418966/s-p-500-nasdaq-100-dip-from-record-highs-as-investors-take-chipmaker-profits-energy-sector-rebou">at all-time highs.</a>
What Happened: Technology giant NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recently passed Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to briefly become the <a href="https://www.benzinga.com/news/24/06/39386946/microsoft-apple-step-aside-nvidia-is-now-the-most-valuable-public-company-in-the-world">most valuable company in the world.</a>
The 200% gain for Nvidia shares in the last year has helped major stock indexes, but could also lead to changes from investors in the second half of 2024.
"I think we're a little out over our skis," Freedom Capital Markets Chief Global Strategist Jay Woods <a href="https://www.cnbc.com/video/2024/06/20/the-market-is-due-for-a-pause-says-freedom-capitals-jay-woods.html?__source=sharebar%7Ctwitter&amp;par=sharebar">said </a>in a CNBC interview.
Woods cited <a href="https://www.benzinga.com/news/24/06/39368302/state-street-technology-etf-to-put-nvidia-before-apple-in-revamp">the major rebalancing</a> of the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) that will see Nvidia as a larger holding. Woods also mentioned it was changing at the top for market capitalization dominance among the three companies.
"That's changing how people are restricting their portfolios."
<a href="https://x.com/JayWoods3">Woods </a>said technical show stocks and indexes above major moving averages led to "a lot of euphoria in the market."
"After awhile, you're gonna pause."
Woods said the rebalancing of XLK and reconstitution of the Russell 2000 are key events coming around the second half of the year. Investors could be looking to cut back on their exposure to Nvidia after the sharp run-up in the first half of 2024, Woods said.
"A pause given the great run we've had is just a normal, routine thing."
Woods said, "now's the time if you have profits to book them."
Related Link: <a href="EXCLUSIVE: Nvidia Dow Jones Inclusion 'A Matter Of When' — Will It Replace Int">EXCLU</a><a href="https://www.benzinga.com/top-stories/24/05/39011237/exclusive-nvidia-dow-jones-inclusion-a-matter-of-when-will-it-replace-intel">SIVE: Nvidia Dow Jones Inclusion &#8216;A Matter Of When&#8217; — Will It Replace Intel?</a>
 What's Next: While Woods sees a pause happening in the short term, he remains bullish on the market going forward.
"I still think this is early, AI leading the way," Woods said.
With a potential pullback in technology stocks and leaders like Nvidia, Woods is highlighting some other areas that could spell opportunity.
"I like the financials here."
Woods said July 12 is a key date to watch with JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reporting quarterly financials and kicking off the sector.
Investors looking for exposure to the financials sector have many ETFs to choose from including the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Woods also likes homebuilder stocks with mortgage rates going under 7%. The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) is a leading homebuilder ETF option for investors.
While the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has hit record highs, the Russell 2000 hasn't had the same returns, up less than 1% on the year.
Woods said the Russell 2000 could play catch up to the other indexes in the second half of 2024.
"When it runs, it runs quickly."
The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) tracks the Russell 2000 Index.
Woods said he's not predicting more than one cut the rest of 2024 and investors will likely try to position their portfolios based on the items above.
"People are going to look for value as we start the second half of the year."
Read Next: <a href="https://www.benzinga.com/markets/penny-stocks/24/06/39437829/nvidia-shorts-are-down-big-ai-chipmaker-is-most-shorted-stock-hedge-to-the-overall-market-an">Nvidia Shorts &#8216;Are Down Big&#8217;: AI Chipmaker Is Most Shorted Stock, &#8216;Hedge To The Overall Market And The Tech Sector&#8217;</a>
Photo: Shutterstock

Market Could Take Normal, Routine Pause After Record Highs, Strategist Says: 'Now's The Time If You Have Profits To Book Them'

Kashkari Said We Are In A High Pressure Economy In Some Dimensions, But Some Signs It's Cooling; Job Market Has Performed Better Than Expected; May Be More Cooling

Kashkari Said Best Thing Fed Can Do For Housing Is To Get Inflation Down

Morning In America

Sales Of Existing Homes Finally Begin To Thaw A Little, Amid Highest Supply For December Since 2018

New Home Sales Up 3.6% In December; Beats Forecast

In this video, Ira Epstein reviews the day's trading in various SPDR-ETF markets for the trading day that ended, Monday, January 27.

SPDR ETF Report For Monday, Jan 27

XHB: 7% Mortgage Rates Are No Problem For Rebounding Homebuilders

New Home Market Cap Points To Disappointing Year

What would accelerate the downfall of the homebuilders would be a resumption of interest rate strength.

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