The Week Ahead: Homebuilder Earnings and Job Openings
Homebuilder Earnings to Dominate the Week Ending November 13
Homebuilder earnings dominate the week ahead
The week after the jobs report is typically dull, and next week is no exception. Markets will probably continue to adjust to the strong jobs report, but there isn’t much in the way of market-moving data this week. Economically, retail sales and job openings will probably be the most important.
Homebuilder earnings will be the highlight with builders at two ends of the spectrum announcing their results. Luxury homebuilder Toll Brothers will announce earnings on Monday. Investors will focus on whether the turmoil in the markets over the summer has affected demand at the luxury end. On the other side of the coin, D.R. Horton will announce on Tuesday, and the markets will focus on the return of the first-time homebuyer, as D.R. Horton devotes more resources to this demographic.
Economic data this week
Here’s a rundown of this week’s economic data:
Monday, November 9:
Labor markets conditions index
MBA (Mortgage Bankers Association) foreclosures
MBA mortgage delinquencies
Tuesday, November 10:
NFIB small business optimism index
Import price index
Wholesale inventories
Wholesale sales
Wednesday, November 11:
MBA mortgage applications
Thursday, November 12:
Initial jobless claims
Bloomberg consumer comfort index
JOLTS job openings
Monthly budget statement
Friday, November 13:
Retail sales
Producer price index
Business inventories
University of Michigan consumer sentiment
Earnings reports
Monday, November 9:
Toll Brothers (TOL)
Northstar Realty Finance (NRF)
Tuesday, November 10:
D.R. Horton (DHI)
Impact on mortgage REITs
REITs such as Annaly Capital Management (NLY) and American Capital Agency (AGNC) will focus mainly on the bond market movements after the jobs report. Nothing this week should be market moving. Investors who want to bet on interest rates can look at the iShares 20+ Year Treasury Bond ETF (TLT).
Impact on homebuilders
Builders such as Catalantic (CAA) and D.R. Horton (DHI) will focus on earnings and the JOLTs job openings report. We’re entering the seasonally slow period for builders, which lasts about as long as football season. Investors can trade in the homebuilding sector through the SPDR S&P Homebuilders ETF (XHB).
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