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Home builder stocks fall after data showing new construction slowed

Shares of home builders traded broadly lower in premarket trading Wednesday, following disappointing government data on April housing starts and building permits. The iShares U.S. Home Construction ETF (ITB) slumped 2.5% in premarket trading, while futures for the S&P 500 slipped 0.7%. Among some of the more active home builders ahead of the open, shares of Toll Brothers Inc. (TOL) fell 1.8%, PulteGroup Inc. (PHM) slid 1.9%, KB Home (KBH) gave up 0.7%, D.R. Horton Inc. (DHI) dropped 1.5% and Lennar Corp. (LEN) slipped 0.7%. Construction of new homes fell 0.2% to an annual pace of 1.72 million in April, compared with expectations of a 1.75 million rate. Building permits fell 3.2% to a 1.82 million rate, in line with expectations. Also in the home builder ETF, shares of Lowe's Cos. (LOW) declined 3.9% premarket, after the home improvement retailer beat fiscal first-quarter profit expectations but missed on sales. Elsewhere, shares of real estate information company Zillow Group Inc. (Z) dropped 2.0% premarket.

-Tomi Kilgore

 

(END) Dow Jones Newswires

05-18-22 0851ET

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