Investors Bid Up Homebuilders, Energy Stocks — Monday’s IP Market Recap

by Kyle Woodley | February 27, 2012 4:46 pm

Investors Bid Up Homebuilders, Energy Stocks — Monday’s IP Market Recap

IPMarketRecap Investors Bid Up Homebuilders, Energy Stocks    Mondays IP Market Recap[1]U.S. housing market data continued a strong 2012 showing Monday, sending homebuilder stocks up on an otherwise flat day.

The National Association of Realtors reported that its pending home sales index rose 2% to 97 in January[2], a high not seen since April 2010, when it hit 111.3. Pending sales are considered an early (though not wholly accurate) indicator of home sales, and several homebuilding stocks rose as a result.

Hovnanian Enterprises (NYSE:HOV[3]) finished up 4.6% Monday, NVR (NYSE:NVR[4]) gained 2.1%, D.R. Horton (NYSE:DHI[5]) was up 1.9% and KB Home (NYSE:KBH[6]) was up 1.1%.

Home improvement company Lowe’s (NYSE:LOW[7]) also recorded a modest gain after better-than-expected quarterly earnings. Fourth-quarter earnings per share of 29 cents topped Zacks estimates for 23 cents and were up almost 40% from the year-ago period. Sales of $11.6 billion were up a Street-beating 11%. Lowe’s, like Home Depot (NYSE:HD[8]), credited a warm winter for the surge, and LOW shares popped on the news before dwindling down to a gain of less than 1%.

Energy stocks also were trending higher Monday. Driller Transocean (NYSE:RIG[9]) was up more than 5%, thanks to positive developments in its lawsuit over the Macondo oil spill that helped the company overcome weak fourth-quarter earnings. BP (NYSE:BP[10]) also gained 1% as it discussed settlements around the spill. Meanwhile, a host of other energy stocks were recording strong gains, including ATP Oil & Gas (NASDAQ:ATPG[11], +19%), Cheniere Energy (NYSE:LNG[12], +11.8%) and Kinder Morgan (NYSE:KMI[13], +4.6%).

Three Up

Three Down

Kyle Woodley[20] is the assistant editor of InvestorPlace.com[21]. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[22].

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. pending home sales index rose 2% to 97 in January: http://investorplace.com/2012/02/pending-home-sales-popped-in-january/
  3. HOV: http://studio-5.financialcontent.com/investplace/quote?Symbol=HOV
  4. NVR: http://studio-5.financialcontent.com/investplace/quote?Symbol=NVR
  5. DHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=DHI
  6. KBH: http://studio-5.financialcontent.com/investplace/quote?Symbol=KBH
  7. LOW: http://studio-5.financialcontent.com/investplace/quote?Symbol=LOW
  8. HD: http://studio-5.financialcontent.com/investplace/quote?Symbol=HD
  9. RIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIG
  10. BP: http://studio-5.financialcontent.com/investplace/quote?Symbol=BP
  11. ATPG: http://studio-5.financialcontent.com/investplace/quote?Symbol=ATPG
  12. LNG: http://studio-5.financialcontent.com/investplace/quote?Symbol=LNG
  13. KMI: http://studio-5.financialcontent.com/investplace/quote?Symbol=KMI
  14. CTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTB
  15. OREX: http://studio-5.financialcontent.com/investplace/quote?Symbol=OREX
  16. MU: http://studio-5.financialcontent.com/investplace/quote?Symbol=MU
  17. DNDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNDN
  18. SMBL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SMBL
  19. NVS: http://studio-5.financialcontent.com/investplace/quote?Symbol=NVS
  20. Kyle Woodley: http://investorplace.com/author/kyle-woodley/
  21. InvestorPlace.com: http://investorplace.com/
  22. here: http://investorplace.com/hot-topics/investorplace-market-recap/

Source URL: http://investorplace.com/2012/02/homebuilder-energy-stocks-nov-nvr-dhi-kbh-low-bp-rig/
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