Investments

Housing market data gives mega bank stocks extra boost

Wall Street is beautiful dynamic, especially when trading is working in one’s favor. 

Tuesday just happens to be one of those days that investors and large banking institutions see a lot to rejoice about, considering the stock market is performing at an impressive pace. 

Why the sudden boost of confidence? We can all thank the market data, specifically the S&P/Case-Shiller.

Home prices inched upward, rising by 10.2% in the first quarter of 2013 over the first quarter of 2012, according to Tuesday’s data. Consumers are markedly happy as well.

Additionally, the 10- and 20-city composites showed average home prices increase 10.3% and 10.9%, respectively. 

As a result, lender stocks including Bank of America [stock BAC][/stock], Citigroup [stock C][/stock], Wells Fargo [stock WFC][/stock] and JPMorgan Chase [stock JPM][/stock] are reaping the benefits of the housing recovery. 

For instance, Bank of America is up 1.5% (as of press time), while JPMorgan is also up 1.7%.

 

The good news keep piling up, as consumer confidence increased again in May in response to a continued rally in the stock market and strengthening housing economy. 

The news indicates an improved outlook for the nation’s economy, which also leads to a better trading stock market. 

No matter which way you slice the economic data from Tuesday, one thing is certain: Wall Street has placed its bets on housing and, so far, the risk is paying off. 

cmlynski@housingwire.com

3d rendering of a row of luxury townhouses along a street

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