US Housing Stocks Drop After Cautious Retailer Outlooks
US housing stocks fell Wednesday as Lowe's warned that high interest rates weigh on sales. The retailer cited a lock-in effect keeping turnover under pressure.
Housing-related stocks in the United States[Country:{ "assets":{ "country":"US" } }] experienced a sharp decline on Wednesday, as major home improvement retailers signaled that high interest rates and economic pressures continue to stifle the domestic real estate market. Several housing stocks were among the biggest decliners in the S&P 500, contrasting with a broader market gain of 0.8%.
Lowe's Companies, Inc.[Symbol:{ "assets":{ "symbol":"LOW" } }], which holds a market valuation of nearly $150 billion, saw its shares drop 5.6% after the company provided a full-year forecast for sales and earnings that fell short of Wall Street expectations. This sentiment rippled through the sector, impacting major homebuilders. Lennar Corporation[Symbol:{ "assets":{ "symbol":"LEN" } }] finished the day 4.9% lower, while PulteGroup, Inc.[Symbol:{ "assets":{ "symbol":"PHM" } }] and D.R. Horton, Inc.[Symbol:{ "assets":{ "symbol":"DHI" } }] fell 4.5% and 4% respectively.
