DR Horton, PulteGroup Results Lift Homebuilder Stocks
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Shares of D.R. Horton (DHI) and PulteGroup (PHM) rose on Tuesday after each homebuilder’s latest quarterly results came in better than expected, which gave a boost to other homebuilder stocks.
D.R. Horton’s fiscal third-quarter revenue came in at $9.23 billion while it earned $3.36 per share, each well above the analyst consensus compiled by Visible Alpha. PulteGroup’s own second-quarter results also beat estimates by a narrower margin at $4.4 billion and earnings per share of $3.03.
“New home demand continues to be impacted by ongoing affordability constraints and cautious consumer sentiment,” D.R. Horton Executive Chairman David Auld said. “We expect our sales incentives to remain elevated and increase further during the fourth quarter, the extent to which will depend on the strength of demand during the remainder of summer, changes in mortgage interest rates and other market conditions.”
D.R. Horton trimmed its full-year revenue forecast to $33.7 billion to $34.2 billion from $33.3 billion to $34.8 billion previously, as it now expects to close on 85,000 to 85,500 homes this year, with the top end lowered from 87,000 previously.
PulteGroup CEO Ryan Marshall said the company “saw consumers dealing with a range of issues from high interest rates and challenged affordability to macro concerns about the strength of the economy” during the spring selling season.
PulteGroup shares were up 11% in recent trading, while D.R. Horton shares rose 16%. Tuesday’s moves put each stock into the green for the year, while rival homebuilders Lennar (LEN) and KB Home (KBH) each surged more than 8%.
Homebuilder stocks had a difficult first half of the year as the housing market stayed stagnant in the first quarter and the Trump administration’s tariffs looked like they would raise construction costs across the industry.
Lockheed Martin Slides as Defense Contractor Cuts Outlook
1 hr 28 min ago
Lockheed Martin (LMT) stock tumbled Tuesday as the defense contractor reported $1.6 billion in losses across a range of programs and slashed its full-year profit forecast.
Shares of Lockheed were down more than 8% in recent trading. The stock has lost about 13% of its value since the start of the year.
A classified program in Lockheed’s aeronautics program that faced “design, integration, and test challenges” led to recognize $950 million in pre-tax losses, the company said. The company reported another $570 million losses on an international helicopter program. The losses, CEO Jim Chaiclet said, “are a necessary step as we continue to take action to improve program execution.”
The company now expects full-year earnings per share of $21.70 to $22, down from a prior estimate of $27 to $27.30. Lockheed maintained its sales outlook of $73.75 billion to $74.75 billion, which is in line with the Visible Alpha analyst consensus.
In the second quarter, Lockheed reported revenue of $18.16 billion, up less than 1% year-over-year and short of the analyst consensus. The company’s net income fell to $342 million, or $1.46 per share, from $1.6 billion, or $6.85 per share, largely due to the program losses.
Opendoor Stock Price Levels to Watch After Monday’s Surge
2 hr 15 min ago
Opendoor Technologies (OPEN) shares bounced around Tuesday after the stock surged more than 40% yesterday as retail traders bid up Wall Street’s newest meme stock sensation.
Shares in the online residential real estate platform soared as much as 120% Monday before giving back some of those gains as traders booked profits into the close. The stock nearly tripled in value last week after EMJ Capital founder Eric Jackson made favorable comments and members of a Reddit trading community behind the GameStop (GME) meme stock frenzy in 2021 began sharing screenshots of their Opendoor trades.
The stock was down 1% at $3.18 in recent trading, after jumping more than 20% early Tuesday. The recent rally is good news for a company that faced a potential Nasdaq delisting in May because its stock traded below $1 for 30 consecutive business days.
After bottoming out last month, Opendoor shares have surged as retail traders attempt to capitalize on the stock’s momentum. The price gapped higher on Monday before running into overhead resistance around the closely watched 200-week moving average.
The recent buying has occurred on record volume, signaling strong trading activity in the stock. While the relative strength index confirms accelerating price momentum, it also flashes overbought conditions, increasing the chances of near-term price swings.
Investors should watch overhead areas on Opendoor’s chart around $5 and $11, while also monitoring key support levels near $1.80 and 92 cents.
Read the full technical analysis piece here.
GM Shares Slide as Automaker Warns of Tariff Hit
2 hr 33 min ago
General Motors (GM) on Tuesday posted second-quarter results that topped analysts’ estimates, but warned it could face a bigger headwind from tariffs in the second half of the year.
The parent company of Chevy and Cadillac reported adjusted earnings per share of $2.53 on revenue that fell 1.8% from the same time a year ago to $47.12 billion. Both measures came in above analysts’ estimates compiled by Visible Alpha.
Looking ahead, the automaker held its full-year outlook steady after lowering profit forecasts in April. Last quarter, GM cut its adjusted EPS forecast to a range of $8.25 to $10, down from $11 to $12 previously.
However, the company warned Tuesday that tariffs could be a larger headwind in the third quarter than the second, and affect fourth-quarter results as well.
GM CEO Mary Barra said in the automaker’s quarterly shareholder letter that executives are working to position the business to “adapt to new trade and tax policies, and a rapidly evolving tech landscape.”
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GM said it is “making solid progress to mitigate at least 30%” of the projected $4 billion to $5 billion tariff headwind “through manufacturing adjustments, targeted cost initiatives, and consistent pricing.”
Shares of GM were down 7% recently, trading near their lows for the day. They entered Tuesday roughly flat on the year.
How Much Traders Expect Tesla to Move After Earnings
3 hours ago
Tesla (TSLA) is scheduled to report its second-quarter results after the market closes on Wednesday, with investors expecting the electric vehicle maker’s stock to make a sizable move after the report.
Based on options pricing, Tesla stock is seen moving close to 7% or almost $22 in either direction from Monday’s close near $329 by the end of this week.
Tesla shares rose 5.4% the day after the electric vehicle maker’s first-quarter report, when CEO Elon Musk told investors he was weeks away from leaving his work with the Trump administration. They gained nearly 3% following Tesla’s January fourth-quarter report, after surging nearly 22% and falling 12.3%, respectively, after each of the two previous quarters‘ earnings.
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Tesla shares, which were up slightly on Tuesday, have lost nearly 20% of their value since the start of this year. They have recovered from the lows they experienced in March and April when Tesla was the subject of protests while Musk was working in the federal government, but have still been pressured in recent weeks as Musk has continued to insert himself into politics on social media.
The EV giant is expected to report a decline of more than 10% in revenue from the same time a year ago, to $22.78 billion, while adjusted earnings per share are projected to drop nearly 20% to 42 cents, according to estimates compiled by Visible Alpha. Analysts have said recently the stock could respond more to Musk’s comments about Tesla’s recently launched robotaxi program and other projects than the company’s quarterly financial results, as the shares rose earlier this month despite deliveries missing estimates.
Among the analysts tracked by Visible Alpha who follow the company, eight call Tesla stock a “buy,” compared with five “hold,” and four “sell” ratings. Their average price target at $301 is about 8% below Monday’s closing level.
Is Kohl’s the Latest Meme Stock?
4 hours ago
Is a beaten-down retailer the newest meme stock?
That’s one possible explanation for today’s jump in shares of Kohl’s (KSS), which were recently up some 30% after rising more than 100% in the opening minutes of the session, leading to a temporary halt in trading. The rise had earlier wiped out a year-to-date slide that had erased roughly a quarter of the company’s market value, though the move had cooled a bit from morning highs.
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The move didn’t follow any fresh corporate news, and its next quarterly earnings release isn’t imminent. It’s possible traders have instead seized on the stock—which is heavily shorted, possibly making it a candidate for a squeeze—as a vehicle for dramatic action, with the shares recently a topic of conversation on Reddit’s go-go wallstreetbets forum.
Kohl’s first-quarter results, published in late May, were better than expected, though they followed on news that the company had fired its CEO not long into the announcement of an ambitious turnaround plan.
Wall Street is broadly bearish, with Visible Alpha’s mean price target at $8, below Monday’s $10.42 per share close. UBS analysts on Monday reiterated a $4 target.
QQQ Levels to Watch Ahead of Big Tech Earnings
5 hr 23 min ago
The Invesco QQQ Trust (QQQ) came into Tuesday’s session at its highest ever level as investors await earnings reports this week from major technology companies.
EV maker Tesla (TSLA) and Google parent Alphabet (GOOGL) and computing giant IBM (IBM) are due to report quarterly results after the closing bell Wednesday, while embattled chipmaker Intel (INTC) is scheduled to release its earnings reports late Thursday.
The QQQ, which tracks the performance of the tech-heavy Nasdaq 100 Index, has received a boost in recent months from improved sentiment surrounding technology stocks as concerns about tariffs have eased and economic data reports have remained strong.
Through Monday’s close, the ETF had rebounded 40% from its early-April low and was up 10% since the start of the year. The QQQ was down 0.8% at around $560 in recent trading.
After breaking out from a flag pattern late last month, QQQ’s price has continued its move into price discovery. Importantly, the breakout coincided with the 50-day moving average (MA) crossing above the 200-day MA to form a golden cross, a bullish chart signal that indicates the start of a new uptrend.
Moreover, the relative strength index has remained near its overbought threshold since early May, confirming the fund’s strong price momentum.
The measured move technique forecasts a near-term price target of $589. Investors should monitor crucial support levels on QQQ’s chart around $540 and $515.
Read the full technical analysis piece here.
Coca-Cola Profits Top Estimates, Sales Come in Short
6 hr 38 min ago
The Coca-Cola Company (KO) posted better second-quarter profits than analysts had projected on Tuesday morning, while sales fell short.
The soda maker said Tuesday it earned a “comparable,” or adjusted, $0.87 per share, 4 cents better than estimates, while revenue rose 1% to $12.5 billion in the quarter, just below the analyst consensus compiled by Visible Alpha.
Coca-Cola narrowed its full-year profit forecast, saying it expects comparable EPS to grow by about 3% from $2.88 in 2024, compared to its previous 2% to 3% range. Comparable revenue and EPS are each expected to be negatively impacted by currency exchange rates in the third quarter and second half of the year, the company said.
Shares were down nearly 1% shortly after the results were released. They entered Tuesday up about 13% since the start of this year.
Coca-Cola said in Tuesday’s release that it plans “to launch an offering made with U.S. cane sugar to expand its Trademark Coca-Cola product range” this fall. The company said the new U.S. product is “designed to complement the company’s strong core portfolio and offer more choices across occasions and preferences.”
The announcement comes after President Donald Trump last week said the company had agreed to sweeten its iconic soda with cane sugar as officials in his administration have pushed food companies to abandon certain ingredients such as artificial dyes and high fructose corn syrup.
The maker of its namesake beverage, Sprite, and dozens of others topped profit estimates while sales fell short last quarter, as the company said it expected a “manageable” impact from tariffs over the full year. Analysts said ahead of the report that Coca-Cola’s biggest tariff headwinds would likely be from fruit juice and aluminum it imports to make its products.
Soda rival PepsiCo (PEP) topped estimates in its own second-quarter report last week, touting strong international sales growth.
Major Stock Index Futures Little Changed
7 hours ago
Futures tied to the Dow Jones Industrial Average down 0.1%.
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S&P 500 futures rose fractionally.
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Nasdaq 100 futures were down less than 0.1%.
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