Housing Bubble? Take A Look At This Homebuilder

  • May 26, 2005
  • Brice Wightman

Stocks are higher on solid economic data and an
excellent report from a major homebuilder.


Q1 preliminary GDP rose 3.5%, more or less in-line.  Jobless claims for the
week of 4/21 rose 1000 to  323K, slightly less than expected

crude over $51.

The euro made a 7-month low vs. the dollar.

Toll Bros.
(
TOL |
Quote |
Chart |
News |
PowerRating) beat by 0.22 and guided higher. Net income more than
doubled. The company has a $5.87 billion backlog and says it has pricing power.
Also, the company owns land across the country–“land banking.”

Costco
(
COST |
Quote |
Chart |
News |
PowerRating) beat by a penny. Sales rose 10%.

The Fed’s Edward Gramlich said the U.S. economy may be “through the
soft patch.”

Strong sectors are:  Homebuilders
(
$HGX.X |
Quote |
Chart |
News |
PowerRating) +2.85%    
Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) +1.84%    Semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
+1.71%  

Weak sectors are:  Gold  
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
-0.66%   

Dow +65.85 10,523.65
Nasdaq +17.71 2067.83
S&P 500 +7.18 1197.19

The dollar is +0.39 at
86.74

Crude Oil is -0.37 at
51.35

Gold is -1.50 at 417.60

ce=”Arial” size=”2″ face=”Arial”>Volume is 648 million on the NYSE and
692 million on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 2239 Up Vol 476
Declining 796 Down Vol 103
2.81 4.62
Nasdaq
Advancing 1932 Up Vol 497
Declining 856 Down Vol 124
2.25 4.00

Stocks in the News

Petco
(
PETC |
Quote |
Chart |
News |
PowerRating) was in-line at 0.32 but was light on revenues.

Express Scripts
(
ESRX |
Quote |
Chart |
News |
PowerRating) declared at 2:1 stock split.

Michael’s Stores
(
MIK |
Quote |
Chart |
News |
PowerRating) beat by 0.04. Q1 profits rose 59%.

UBS started Teva Pharmaceuticals
(
TEVA |
Quote |
Chart |
News |
PowerRating) with a buy.

Dollar General
(
DG |
Quote |
Chart |
News |
PowerRating) missed by 0.02. Revenue was 1.98 billion.

Elan’s
(
ELNE |
Quote |
Chart |
News |
PowerRating) CEO said the return of Tysabri is a
question of “when” not “if.”

Hormel
(
HRL |
Quote |
Chart |
News |
PowerRating) missed by 0.02.

Heinz
(
HNZ |
Quote |
Chart |
News |
PowerRating) beat by a penny.

Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating) will not receive an approvable letter for
their Alzheimer drug Risperdal.

Novell
(
NOVL |
Quote |
Chart |
News |
PowerRating) missed by 0.03, ex-items, widening its quarterly
loss.

Brice Wightman

 

 

 

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