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📊 Home Sweet Home(less)
Ticker Tea
February 27, 2024
Good Morning ☀️
Yesterday’s economic data release revealed a 1.5% increase in home sales to an annual rate of 661k, which missed the street estimate of 684k. Meanwhile, the supply of new homes continues to increase. Homebuilder sentiment remains strong as a result of the expected rate cuts in the coming months/years.
Home builder stocks (PHM, BLDR, DHI, LEN) have been ripping since COVID:
Despite the positive data, home ownership remains out of reach for many Americans. A recent report by Clever revealed 48% of respondents believe home ownership is unattainable for the average millennial. A few other interesting stats from the report…
The median U.S. home costs $431,000, but 57% of millennials plan to purchase a home that costs less than $400,000.
85% of millennials would buy a home sight unseen, but 13% of millennial homeowners regret purchasing a home without seeing it first.
Nearly half of millennials (47%) plan to put down less than 20% on a home.
More than 3 in 4 millennial home buyers (78%) would consider accepting an interest rate that’s higher than the national rate of about 7%.
About 25% of millennials have less than $10,000 in savings, and 12% have less than $1,000 in savings — including 5% who have nothing saved.
» Yesterday Wrap Up: The major stock indices closed lower amid a consolidation below the previous week's record highs, influenced by rising bond yields due to supply pressures and anticipation for this week’s U.S. economic updates, such as consumer confidence (TODAY), revised GDP figures, and the Fed's preferred inflation gauge (PCE).
» Earnings Today: Lowe’s, AutoZone, Extra Space Storage, Splunk, eBay, Axon (Calendar & Estimates 👇)
» Economic Data Today: Durable Good, Case-Schiller Home Price Index, CB Consumer Sentiment (Calendar & Estimates 👇)
» Fed Speakers Today: Barr
» The Federal Aviation Administration (FAA) released a critical report on Boeing ($BA), highlighting a significant "disconnect" between its senior management and staff. This report points to ineffective procedures and communication breakdowns, exacerbating safety concerns within the company. Such issues have intensified scrutiny on Boeing, especially following a near-catastrophic accident earlier in the year, raising alarms over the company's safety culture and operational standards. (link)
» Google ($GOOGL) plans to relaunch its Gemini AI image generator within a "few weeks" following its withdrawal due to inaccuracies and controversies. The tool, part of Google's AI suite, faced criticism for generating historically inaccurate images, leading to a 4.4% decline in Alphabet shares. Google aims to address these issues and reintroduce the improved product, amidst broader efforts to develop AI agents for various tasks. The incident underscores the challenges of ensuring AI ethics and accuracy in generating content. (link)
» U.S. new-home sales experienced a slight increase of 1.5% in January to an annual pace of 661,000 units, albeit after downward revisions to past months' data. The median sales price of new homes dropped to $420,700, marking the fifth consecutive decline amidst growing supply. The sector's initial boost from lower mortgage rates could be short-lived as the Fed maintains higher borrowing costs. (link)
» Charter Communications ($CHTR) is considering a takeover of Altice USA ($ATUS), sparking a surge in Altice USA's stock by as much as 63%, marking its biggest gain since the 2018 spinoff. Amid challenges from increased wireless competition affecting both companies, Charter's potential acquisition aims to strengthen its position in the broadband and video services sector. Altice USA saw its market value rise to about $1.14 billion following the news. (link)
» A recent paper by IMF and Harvard University researchers, including Lawrence Summers, suggests that rising borrowing costs are negatively impacting US consumer sentiment more than economists have accounted for. Despite a strong economy with low unemployment and growing job numbers, consumer mood remains low, likely due to increased reliance on credit cards and the higher costs of financing debt, which are not reflected in official inflation measures. (link)
» Hims & Hers Health ($HIMS) saw its stock jump by as much as 21% in postmarket trading, following the announcement of its 2024 revenue forecast ($1.17-$1.2 billion) which exceeded market expectations. This optimism is fueled by the strong demand for its personalized treatments and newly launched weight-loss program. The company, which reported its first quarterly profit since going public in January 2021, is witnessing a significant subscriber increase, attributed to its focus on personalized care and innovative health solutions. (link)
» Zoom's ($ZM) fiscal fourth-quarter results surpassed analysts' expectations, with EPS at $1.22 adjusted, above the $1.15 forecast, and revenue reaching $1.15 billion against the expected $1.13 billion. This performance sparked a 13% rise in Zoom's shares in extended trading. Despite the modest growth compared to its pandemic peak, the company projects steady progress, aiming for $4.85 to $4.88 in adjusted EPS and $4.60 billion in revenue for the 2025 fiscal year. (link)
Certain earnings releases scheduled for today:
Yesterday’s economic release results summarized below, along with today’s calendar. Red = Important
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