Real estate stocks thrive on positive earnings reports
Big banks struggle to see light on HW 30 index
Riding on the coattails of two very impressive third-quarter earnings reports from homebuilders Lennar (LEN) and KB Home (KBH), real estate-related stocks closed the day with positive movement on the HW 30 index.
Despite the 0.77% drop seen by the index, Lennar posted the strongest gains of the day, up 4.26% at $36.01 per share at market close. Over the past month, the builder has seen its stock value increase 10.46%.
HW 30 index homebuilders D.R. Horton (DHI) and Toll Brothers (TOL) also saw substantial success on Tuesday. D.R. Horton increased 1.26%, ending the day at $20.06 per share. The homebuilder has improved 7.10% over the past month.
Toll Brothers ended the day up 2.18% at $33.33 per share. Toll Brothers has also improved significantly over the past month, up 6.86%.
Other stocks relying heavily on the success of the housing market saw a ripple effect from the positive homebuilder earnings reports this morning.
On the news that its bid to dismiss a series of statutory claims filed by the U.S. government back in October 2012 was denied, Wells Fargo (WFC) fell 1.37% on Tuesday, ending the day at $41.73 per share. The mortgage lender has struggled slightly over the past month, falling 2.41%.
Another big bank, JPMorgan Chase (JPM), took quite a tumble Tuesday as well, falling 2.22% for the day. This decline comes on the day that the bank reportedly resumed settlement talks with the U.S. concerning its representation of mortgage-backed securities it sold from 2005 through 2007.
The third and final big bank represented on the HW 30 index, Bank of America (BAC), also fell Tuesday, down 0.35% for the day.