The stock market closed mixed on Tuesday as investors await key inflation readings that could give them clarity on Federal Reserve’s rate cuts this year. The December consumer price index and producer price index is set for release Thursday and Friday, respectively.
Overall, S&P 500 declined 0.2% to 4,757, while NASDAQ grew 0.1% to 14,858.
Tweet of the Day
Shorting MDB might not be everyone’s cup of tea but it’s hard to build a long case here
— dalibali (@dalibali2) December 28, 2023
Chart of the Day
Here is the ten-year chart of DR Horton (DHI) as of December 20, 2023, when the stock was at $149.
Homebuilder DR Horton stock has soared in December as the Federal Reserve is expected to cut interest rates in 2024. The builders have gone breathtaking runs higher as investors anticipate a better housing market ahead.
Meanwhile, DR Horton delivered mixed results last quarter due to high mortgage rates and inflationary pressures. Profits declined 5% year-over-year as revenue increased 9%. Net sales orders increased 39%, while cancelation rate declined from 32% to 21% year-over-year. The company increased the use of incentives, reduced the size of homes, and limited availability, leading to heightened demand when compared to the available supply and thus encouraging more sales.
DHI is on the radar of our Conservative Stock Portfolio, but now it seems too high to buy.
