ETF Trends
ETF Trends

Housing exchange traded funds (ETFs) were set for a red open Monday after Lowe’s (NYSE: LOW) reported first-quarter net income that fell from the year-ago period and the major indexes were down in premarket trading.

Lowe’s and Home Depot (NYSE: HD) are reporting quarterly results this week, so ETFs tracking homebuilders and related housing sectors could see moves. Home-improvement chains Lowe’s and Home Depot are held in the sector ETFs along with builders such as Toll Brothers (NYSE: TOL).

Analysts are expecting an uptrend for both companies in terms of quarterly profit. Lowe’s shares fell in premarket action Monday following its first-quarter numbers.

Multiple housing data reports are expected this week with the market still struggling, reports John Kell for The Wall Street Journal. The Tuesday reports include housing starts and building permits.

A rebound in builder ETFs would be tied to improvement in the jobs market and overall U.S. economy. [Builder ETFs Higher After Home Sales; Pulte Ryland Earnings.]

  • PowerShares Dynamic Building and Construction (NYSEArca: PKB): 5% in Lowe’s, 4.9% in Home Depot.
  • iShares Dow Jones US Home Construction Index (NYSEarca: ITB): 4.6% in Home Depot; 3.8% in Lowe’s.
  • SPDR S&P Homebuilders (NYSEArca: XHB): 3.5% in Home Depot.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.