We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Housing & Permits Outperform on Strong Single-Family
Read MoreHide Full Article
Friday, April 16, 2021
New data in the housing market has come out ahead of regular trading in this final session of the week, and both headline numbers surpassed expectations. On the Housing Starts side, 1.74 million new home construction projects were generated for the month of March, well beyond the 1.62 million consensus estimate. For Building Permits — a proxy for future Housing Starts — came in at 1.766 million, beating the 1.75 million expected.
New starts grew 19.4% month over month, an improvement over the 14% expected. Certainly the warmer climates of early spring have something to do with this, but one very positive development was the 15% growth in single-family homes themselves. These are the real money-makers for the housing industry, and had been putting up sluggish numbers as a scarcity of new builds and record-high lumber prices dampened the hot housing market.
Year-over-year comps — as we’ve already seen in early Q1 earnings reports — are so wide they are basically useless: single-family housing growth from March 2020 is +41%, but that tells us a lot more about the full shutdown amid “shelter in place” initiatives last year than just how hot the market is currently. This will be the case throughout the rest of the spring months, as well.
On the permits side, we see 4.6% month-over-month growth in single family housing units. This is not bad historically, but it is less than half the month-over-month single family starts growth, indicating a slowdown from current building rates may be forthcoming. In all, the industry expects another 3.8 million single-family homes are still in demand currently. The housing market has come a long way, but there is still ground to catch up.
Morgan Stanley (MS - Free Report) becomes the latest Wall Street bank to clobber earnings expectations in Q1, posting $2.19 per share versus $1.72 in the Zacks consensus, and 2.2x the year-ago bottom line of 99 cents per share. Revenues grew 61% from a year ago to $15.7 billion, well outpacing the $13.8 billion our analysts had been looking for. One note in the earnings release did surprise investors this morning: a $911 million loss from a single prime brokerage client — presumed by all to be fallout from Archegos.
Market futures are climbing in the pre-market, with the Dow looking to open 80 points, the Nasdaq +30 and the S&P 500 +10. This follows record-high closes on both the Dow and S&P yesterday afternoon, whereby the former surpassed 34K for the first time ever. The Nasdaq has now pulled within a percentage point of its all-time high set last fall. The S&P 500 is on its hottest pace currently since back in August of last year.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Housing & Permits Outperform on Strong Single-Family
Friday, April 16, 2021
New data in the housing market has come out ahead of regular trading in this final session of the week, and both headline numbers surpassed expectations. On the Housing Starts side, 1.74 million new home construction projects were generated for the month of March, well beyond the 1.62 million consensus estimate. For Building Permits — a proxy for future Housing Starts — came in at 1.766 million, beating the 1.75 million expected.
New starts grew 19.4% month over month, an improvement over the 14% expected. Certainly the warmer climates of early spring have something to do with this, but one very positive development was the 15% growth in single-family homes themselves. These are the real money-makers for the housing industry, and had been putting up sluggish numbers as a scarcity of new builds and record-high lumber prices dampened the hot housing market.
Year-over-year comps — as we’ve already seen in early Q1 earnings reports — are so wide they are basically useless: single-family housing growth from March 2020 is +41%, but that tells us a lot more about the full shutdown amid “shelter in place” initiatives last year than just how hot the market is currently. This will be the case throughout the rest of the spring months, as well.
On the permits side, we see 4.6% month-over-month growth in single family housing units. This is not bad historically, but it is less than half the month-over-month single family starts growth, indicating a slowdown from current building rates may be forthcoming. In all, the industry expects another 3.8 million single-family homes are still in demand currently. The housing market has come a long way, but there is still ground to catch up.
Morgan Stanley (MS - Free Report) becomes the latest Wall Street bank to clobber earnings expectations in Q1, posting $2.19 per share versus $1.72 in the Zacks consensus, and 2.2x the year-ago bottom line of 99 cents per share. Revenues grew 61% from a year ago to $15.7 billion, well outpacing the $13.8 billion our analysts had been looking for. One note in the earnings release did surprise investors this morning: a $911 million loss from a single prime brokerage client — presumed by all to be fallout from Archegos.
Market futures are climbing in the pre-market, with the Dow looking to open 80 points, the Nasdaq +30 and the S&P 500 +10. This follows record-high closes on both the Dow and S&P yesterday afternoon, whereby the former surpassed 34K for the first time ever. The Nasdaq has now pulled within a percentage point of its all-time high set last fall. The S&P 500 is on its hottest pace currently since back in August of last year.
Questions or comments about this article and/or its author? Click here>>
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>