Housing exchange traded funds stayed in the red Wednesday after a report estimating pending home sales jumped 8% in May as disappointing results from KB Home (NYSE: KBH) weighed on the sector.
KB Home shares dropped 8%. “Headline results for KB Home featured a sizable headline earnings-per-share miss and an order print that come in nearly in line with expectations,” Deutsche Bank said in a note.
The headline miss was mostly related to an increase in impairments, a shortfall in margins, and charges stemming from a troubled joint venture, the analysts wrote.
Earlier this week, the S&P/Case-Shiller indexes showed U.S. home prices reversed course and rose in April.
SPDR S&P Homebuilders
Tisha Guerrero contributed to this article.
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