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Market indexes are up in early trading, as the recalibration to proper valuations in a post-Covid world continue. Actually, the big news spurring the markets this morning was the announcement from the Federal Aviation Administration (FAA) that Boeing’s (BA - Free Report) long-troubled 737 MAX jet has been approved for service. The airplane had been grounded for 20 months following two crashes that took the lives of nearly 350 people. Boeing shares are up 6.3% on the news, contributing heartily to the 100+ point gains in the Dow at this hour.
Housing Starts for October also came out this morning, with improving figures over the past few months keeping pace: +4.9% to 1.53 million seasonally adjusted, annualized units. This is up notably from the 1.415 million analysts had been expecting. These numbers come a day after a rousing Homebuilders Survey, which pointed to positive sentiment in all aspects of the housing market. As demand for new places to live — often outside cramped, expensive big cities severely damaged in the early weeks of the coronavirus spread — has kept prices buoyant, it all assists the overall economy in myriad ways.
Building Permits came in just a tad below expectations: 1.545 million versus 1.553 million anticipated. This is unchanged on a percentage basis, down from the +0.5% estimated. Permits are the best-possible forward indicator of future starts, and the good news with these numbers is they are already ahead of October starts, suggesting a possible increase going forward. So in a sector that gives fuel to numerous engines in the overall economy — from bank mortgages to real estate value to materials to workforce — it’s a good sign to see robust monthly numbers continue.
Home improvement retailer Lowe’s (LOW - Free Report) beat by a penny on its bottom line to $1.98 per share in its Q3 report this morning, improving on the $1.41 per share from a year ago. Revenues of $22.31 billion outperformed the Zacks estimate by 5.85%. However, shares are down 6.8% on the news, as guidance disappointed investors. Comps for Q3 rose a better-than-expected 30% (on strong 106% growth online), but guidance for Q4 goes down to 15-20% for the all-important holiday shopping season. Shares had grown 33.5% year to date before today’s pullback.
Big-box retailer Target Corp. (TGT - Free Report) posted a big beat on its Q3 earnings report ahead of Wednesday’s bell, with $2.79 per share well ahead of the $1.61 expected, and more than double the $1.36 per share in the year-ago quarter. Shares are up almost 3% on the news in pre-market trading, as Q3 comps rose 20.7% — nearly double what analysts were looking for. Target stock bottomed out in late March, but has gained nearly 30% year to date.
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Housing Starts Surge in October
Market indexes are up in early trading, as the recalibration to proper valuations in a post-Covid world continue. Actually, the big news spurring the markets this morning was the announcement from the Federal Aviation Administration (FAA) that Boeing’s (BA - Free Report) long-troubled 737 MAX jet has been approved for service. The airplane had been grounded for 20 months following two crashes that took the lives of nearly 350 people. Boeing shares are up 6.3% on the news, contributing heartily to the 100+ point gains in the Dow at this hour.
Housing Starts for October also came out this morning, with improving figures over the past few months keeping pace: +4.9% to 1.53 million seasonally adjusted, annualized units. This is up notably from the 1.415 million analysts had been expecting. These numbers come a day after a rousing Homebuilders Survey, which pointed to positive sentiment in all aspects of the housing market. As demand for new places to live — often outside cramped, expensive big cities severely damaged in the early weeks of the coronavirus spread — has kept prices buoyant, it all assists the overall economy in myriad ways.
Building Permits came in just a tad below expectations: 1.545 million versus 1.553 million anticipated. This is unchanged on a percentage basis, down from the +0.5% estimated. Permits are the best-possible forward indicator of future starts, and the good news with these numbers is they are already ahead of October starts, suggesting a possible increase going forward. So in a sector that gives fuel to numerous engines in the overall economy — from bank mortgages to real estate value to materials to workforce — it’s a good sign to see robust monthly numbers continue.
Home improvement retailer Lowe’s (LOW - Free Report) beat by a penny on its bottom line to $1.98 per share in its Q3 report this morning, improving on the $1.41 per share from a year ago. Revenues of $22.31 billion outperformed the Zacks estimate by 5.85%. However, shares are down 6.8% on the news, as guidance disappointed investors. Comps for Q3 rose a better-than-expected 30% (on strong 106% growth online), but guidance for Q4 goes down to 15-20% for the all-important holiday shopping season. Shares had grown 33.5% year to date before today’s pullback.
Big-box retailer Target Corp. (TGT - Free Report) posted a big beat on its Q3 earnings report ahead of Wednesday’s bell, with $2.79 per share well ahead of the $1.61 expected, and more than double the $1.36 per share in the year-ago quarter. Shares are up almost 3% on the news in pre-market trading, as Q3 comps rose 20.7% — nearly double what analysts were looking for. Target stock bottomed out in late March, but has gained nearly 30% year to date.