Stocks @ Night: Hard-hit Homebuilders And Travel Names On Discount - Free Websites, Share News And Posts Publicly

TUE, OCT 03, 2023

Homebuilders tumble as mortgage rates spike

Homebuilders among the hard-hit areas of the market, with names like D.R. Horton and PulteGroup off by more than 3%. Lennar fell 2.6%. Zillow Group was also getting hit, down over 6% for its worst day since August 2022. CNBC’s Diana Olick notes that mortgage rates haven’t been this high since the end of 2000 and builder sentiment recently fell into negative territory for the first time in 5 months. The SPDR S&P Homebuilders ETF (XHB) and iShares U.S. Home Construction ETF (ITB) are both down over 12% in the past month.

Cal-Maine falls on revenue decline

Cal-Maine fell as much as 15% in the extended session after the egg producer reported a roughly 30% drop in revenue from a year ago. That decline came as average selling price per dozen fell by around 30% as well: from $2.29 a year ago to $1.59. CEO Sherman Miller says prices have “returned to more normalized levels” after last year’s record highs.

Miners buck the trend

Even as gold and silver hit their lowest levels since March, several miners were a notable bright spot in today’s session. IAMGOLD gained over 6%, First Majestic Silver gained 4%, Gold Fields was up 3%, and Kinross Gold rose 2%.

Grocers largely defy the sell-off

Traders turned to some of the staples, as well. Grocers held up especially well, including Weis and Ingles. Dollar General, fresh off its lowest level since 2018 on Monday, rose 1.7%. Campbell Soup, Walgreens and General Mills also eked out gains while still hovering near their lowest levels in at least a year. McCormick a clear outlier, down 8% and hitting its lowest level since March 2020 after posting tepid sales due in large part to China weakness. WK Kellogg also down over 15% in its second day of trading.

Molson rises in after-hours action

Molson Coors, which was halted for much of the regular session because of its investor day, is slightly higher after hours. The brewer greenlit a $2 billion buyback over five years and said it’s on track for a second-straight year of top- and bottom-line growth. That stock is up around 20% this year, outpacing rivals like AB InBev and Boston Beer.

Airlines, cruise operators suffer

Travel and leisure were hammered today, with Carnival and Airbnb among the biggest losers in the S&P 500 – both down more than 6%. Royal Caribbean, Caesars and Norwegian also posted steep losses. Despite the group’s strength through much of the year, largely hanging on to big year-to-date gains, names like MGM Resorts, Caesars, and Carnival are down 18% or more in the past month. United Airlines and Delta also among the big decliners in the past month but still positive in 2023.

Alt energy names slide again

Growth-oriented alternative energy stocks saw their second day of sharp declines. Solar names like Array Technologies and Sunrun, EV charging players like ChargePoint, and fuel cell developers like Bloom Energy and Plug Power were all off by more than 4%. This brings their 2-day declines to at least 11% each.