Homebuilder stocks trade broadly lower, in wake of job cuts from Redfin and Compass

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Shares of homebuilders traded broadly lower Tuesday, after two real estate companies announced job cuts, another sign suggesting the housing market has slowed. The iShares U.S. Home Construction ETF ITB, -0.90% slumped 0.9%, putting it on track to close at the lowest price since Nov. 9, 2020. Among the sector tracker’s more active components, D.R. Horton Inc.’s stock DHI, -0.63% shed 0.4% after CFRA analyst Kenneth Leon downgraded the home builder to hold from strong buy, and cut his price target to $80 from $100, citing an expected decline in home-buying demand as mortgage rates have climbed above 6%. Elsewhere, shares of KB Home KBH, -1.70% dropped 1.7% and Lennar Corp. LEN, -1.15% lost 0.8%. Also, home improvement retail giant Home Depot Inc. HD, -1.54% sank 1.5% toward the lowest close since March 15, 2021. Earlier, Redfin Corp. RDFN, -5.09% said it was cutting 470 jobs, or 6% of its workforce, and Compass Inc. said it was cutting 450 jobs, or 10% of its workforce. The home construction ETF has tumbled 36.1% year to date, while the S&P 500 SPX, -0.78% has dropped 21.9%.

This article was originally published by Marketwatch.com. Read the original article here.

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