ETF Trends
ETF Trends

Exchange traded funds tracking homebuilders and housing stocks dropped about  4% on Wednesday after a report estimating U.S. pending home sales saw an unexpected decline last month.

SPDR S&P Homebuilders (NYSEArca: XHB) and iShares DJ US Home Construction (NYSEArca: ITB) were sharply lower on the news.

The National Association of Realtors said its pending home sales index fell 5.5% in April to the lowest level of 2012. Also, the figures for March were revised lower.

Economists polled by Reuters had expected a slight gain in April pending home sales.

Wednesday’s homebuilder sell-off pushed XHB back below its 50-day simple moving average.

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