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Feb 18
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$119.59
$119.59
-0.0%
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N/A
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Finnhub News
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Finnhub - XHB
Housing Starts Up 6.2% In December, Higher Th...
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Feb 18
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$119.59
$119.59
-0.0%
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LONG
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Benzinga
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US Building Permits, a key leading indicator for housing, surged 4.3% in December, while a decline of 0.2% was expected. A significant and unexpected increase in building permits directly signals a stronger-than-anticipated pipeline for future construction. This points to robust demand and future revenue growth for homebuilding companies. This data is an unambiguous positive catalyst for the homebuilding sector. A long position in a homebuilder ETF like XHB is the most direct way to trade this strong fundamental news, isolating the trade from the broader market's ambiguous interpretation regarding Fed policy. A sharp rise in mortgage rates or a broad market sell-off (due to the "good news is bad news" Fed narrative) could still pull the homebuilding sector down despite the positive sector-specific news. The data could also be a one-month anomaly that is revised down later. |
Finnhub - SPY
USA Building Permits (MoM) For Dec 4.3% Vs -0...
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Feb 18
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$119.59
$119.59
-0.0%
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LONG
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Benzinga
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USA Housing Starts for December came in at 1.404M, substantially beating the 1.310M estimate. This is a direct and positive leading indicator for the homebuilding industry. Higher-than-expected construction activity translates directly into higher potential revenue and earnings for homebuilders. The market appears to have underestimated the strength of the housing sector. A long position in the SPDR S&P Homebuilders ETF (XHB) is a direct way to trade this positive economic surprise. The market could focus on the inflationary implications of the strong data, leading to a rise in mortgage rates that could dampen future housing demand and hurt homebuilder stocks despite the strong report. |
Finnhub - SPY
USA Housing Starts For Dec. 1.404M Vs 1.310M ...
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Feb 18
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$119.59
$119.59
-0.0%
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LONG
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Benzinga
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The article reports that USA Building Permits for December beat estimates (1.448M actual vs. 1.400M estimate). Building permits are a direct leading indicator for future revenues and profitability of homebuilders. A stronger-than-expected number signals robust future construction activity, which should positively impact the earnings outlook for companies in the SPDR S&P Homebuilders ETF (XHB). The positive data surprise provides a bullish catalyst for the homebuilding sector. A long position in XHB is a direct way to trade this sector-specific strength. A broader market sell-off could drag down all sectors, including homebuilders. Additionally, if the market interprets this data as inflationary, the resulting increase in interest rate expectations could lead to higher mortgage rates, which would be a headwind for the housing sector in the medium term. |
Finnhub - SPY
USA Building Permits For Dec. 1.448M Vs 1.400...
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