Homebuilders Were Among Day's Hot Stocks

Rises followed report on sizzling US market
By Newser Editors and Wire Services
Posted May 25, 2021 4:07 PM CDT
Homebuilder Stocks Rise After Report on Sizzling Market
In this photo provided by the New York Stock Exchange, trader Ashley Lara works on the trading floor, Tuesday, May 25, 2021.   (Nicole Pereira/New York Stock Exchange via AP)

Stocks closed lower on Wall Street, giving up an early gain and losing momentum after a solid start to the week. The S&P 500 slipped 0.2% Tuesday. Gains by several Big Tech companies helped limit the loss in the Nasdaq to less than 0.1%. Banks and energy companies fell the most. Investors are still worried that rising inflation could eventually prompt central banks to withdraw help for the economy. The S&P 500 fell 8.92 points to 4,188.13. The Dow Jones Industrial Average fell 81.52 points, or 0.2%, to 34,312.46. Homebuilders rose following a report that US home prices jumped in March by the most in more than seven years as an increasing number of would-be buyers compete for a dwindling supply of houses, the AP reports.

DR Horton rose 2.9% and Toll Brothers gained 2.3%. KB Home rose 4.2% after also reporting that orders have so far more than doubled during the second quarter. The S&P CoreLogic Case-Shiller 20-city home price index jumped 13.3% in March compared with a year earlier—the biggest such gain since December 2013. That price surge followed a 12% year-over-year jump in February. The red-hot housing market and a report that consumer confidence remains strong gave investors another signal that the economic recovery continues. Inflation remains a concern, but Katie Nixon, chief investment officer at Northern Trust Wealth Management, says inflation fears "seem to have come off the boil a little bit."

(More stock market stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.