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In seeking to track the performance of the S&P Homebuilders Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the homebuilders segment of the S&P Total Market Index (S&P TMI).

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Toll Brothers CEO expects robust demand for luxury homes through 2025 after solid results, with strong demand in CA, NJ, PA, SC, Atlanta, Boise, Las Vegas, and Metro D.C. despite uneven demand.

Demand For High-End Homes &#39;Will Remain Solid&#39; Into Next Year, Says Toll Brothers CEO

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Kamala Harris focused on middle-class Americans during a campaign speech Friday. A plan for tax cuts, lowering costs and improving home affordability was laid out.

Harris Warns Trump Tax Plan Will &#39;Devastate Americans,&#39; Vows To Go After &#39;Bad Actors&#39; Behind Food Prices

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The Harris campaign is set to unveil its economic policy on Friday and chief among the proposals will be measures to make housing affordable for Americans.

Homebuilding Stocks On Investors&#39; Radar After Kamala Harris Reveals Plan To Boost Housing Market

Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) CEO Douglas Yearley is expecting the demand for luxury homes <a href="https://www.benzinga.com/news/24/08/40489889/whats-going-on-with-toll-brothers-stock-wednesday">to remain robust</a> into 2025 after his high-end construction company posted solid third-quarter results on Tuesday.
&#8220;With mortgage rates at their lowest point in a year and trending lower, favorable demographics and continuing balance in the supply and demand of homes for sale, we are optimistic that demand for new homes will remain solid through the end of fiscal &#8217;24 and into 2025,&#8221; he said on Wednesday during a conference call with analysts.
He noted that demand was &#8220;uneven&#8221; throughout the quarter as May had a strong start that slowed in June, while July saw the highest demand, particularly in the latter half of the month.
&#8220;We are encouraged by demand trends we are seeing across the country and also across our buyer segments,&#8221; he said.
Demand was especially strong in the states of California, New Jersey, Pennsylvania, South Carolina and in the urban areas of Atlanta, Boise, Las Vegas and Metro D.C., he said.
Toll Brothers posted adjusted EPS of $3.60 that exceeded Wall Street consensus of $3.31 and $2.73 billion in revenue that beat the analyst estimate of $2.71 billion.
Read Also: <a href="https://www.benzinga.com/trading-ideas/previews/24/08/40447261/toll-brothers-q3-earnings-preview-will-kamala-harris-3-million-homes-plan-boost-homebuilde">Toll Brothers Q3 Earnings Preview: Will Kamala Harris&#8217; 3 Million Homes Plan Boost Homebuilder Stocks?</a>
But RBC Capital Markets pointed out that Toll Brothers&#8217; 11% rise in home orders to 2,490 units from a year ago fell well short of its expectation for a 26% jump in orders and Wall Street&#8217;s forecast of a 27% increase in orders. Meanwhile, the company&#8217;s gross margin of 27.6% beat RBC&#8217;s forecast of 26.4% and Street consensus of 26.3%.
&#8220;Net, the miss on orders and beat on GM% were both wider than expected,&#8221; analyst Mike Dahl wrote in a note.
Wedbush Securities noted that Toll Brothers&#8217; orders rose by double-digit percentages in the Midatlantic, South and Mountain regions but fell by single-digit percentages in the North and Pacific regions.
It also pointed out that Toll Brothers&#8217; sales absorption rate, which is the ratio of homes sold to homes available in a market during a period, of 2.1 homes per month was below Wedbush&#8217;s forecast of 2.3 homes per month.
&#8220;We expect absorption to decline to 1.9 orders/month in F4Q24 due to normal seasonality,&#8221; analyst Jay McCanless wrote in a note.
Price Action: Toll Brothers gained 5.62%, to close at $141.03 on Wednesday, along with gains across ETFs in the sector.
<ul>
<li>Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEZ#NASDAQ">PEZ</a>) rose 2.33%.</li>
<li>IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) went up 2.6%.</li>
<li>IShares Focused Value Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FOVL#NYSE">FOVL</a>) gained 0.52%.</li>
<li>Themes US Small Cap Cash Flow Champions ETF (NASDFAQ: SMCF) edged up 0.64%.</li>
<li>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) rose 2.9%.</li>
</ul>
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40464067/toll-brothers-likely-to-report-lower-q3-earnings-these-most-accurate-analysts-revise-forecasts-ahea">Toll Brothers Likely To Report Lower Q3 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Demand For High-End Homes 'Will Remain Solid' Into Next Year, Says Toll Brothers CEO

Vice President Kamala Harris laid out a plan to lower costs for middle-class Americans with a focus on food costs, home ownership costs and health care costs during a speech in swing state <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">North Carolina Friday.</a>
Improve the Economy: Harris laid out a plan to improve the economy and life for the middle class, which remains a top priority for voters in<a href="https://www.benzinga.com/general/politics/24/08/40407829/harris-vs-trump-vice-president-leads-2024-election-by-4-points-shows-strong-support-from-voters-"> 2024 election polls.</a>
"Our country has come a long way," Harris said.
Harris stated that when she and President Joe Biden took office, millions of people were out of work, and they helped orchestrate one of the largest economic comebacks.
"Our economy is the strongest in the world."
As president, Harris said she will be "laser focused" on building what she called an "opportunity economy."
The opportunity economy will be one where everyone has a fair chance to compete, succeed, and build wealth for themselves and their children.
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<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent081624">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>
Lowering Costs: Harris said a main priority as president of the United States will be lowering costs and building on the foundation of progress already in place.
"Costs are still too high," Harris said.
Harris said a family's salary should be enough to provide a good quality of life.
Her speech focused on the middle-class American, which she called an "essential" part of the country.
The vice president said no child should grow up in poverty, and workers should be able to retire with dignity after years of hard work.
"I grew up in a middle-class household."
Harris recalled her time working at McDonald's during college, earning spending money while some of her coworkers were supporting their families, often working their second or third job.
"As president, I will take on the high costs that matter most."
Harris said food companies are seeing their highest profits in two decades, and some companies are not playing by the rules.
"We need to take action when that is the case."
Harris said she will go "after the bad actors" and work on price-gauging acts.
"We will help the food industry become more competitive."
Trump's tax plan is a national sales tax, Harris told the crowd.
"That will devastate Americans."
Harris said Donald Trump will tax everyday products and necessities that are imported, raising costs for gas, food, clothing, and over-the-counter medication.
The vice president said economists estimate the typical family would pay $3,900 more a year under the Trump tax plan.
Harris said she will continue progress on lowering medical costs, which includes capping the cost of insulin and lowering prescription drug costs for seniors.
Food companies could be on watch with Harris' latest comments, with a focus on passing cost savings on to consumers and not having high profit margins. The Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>) tracks many of the top food stocks.
Home Ownership: Another strategic priority from Harris centered on homeownership, with a goal of building three million new homes for sale or rent for the middle class during her "first term" as president.
Harris recalled her family renting homes for most of her life before her mother was able to buy a home. The vice president called homeownership a symbol of pride that comes with hard work and provides financial security.
Homeownership is "out of reach" for many American families, Harris said. A housing shortage is one of the key reasons, the vice president added.
Harris shared that she will work to make a $25,000 credit for first time homebuyers on the purchase of a new home.
"We can do this."
Harris said Trump's plan will add around $1,200 a year to the typical American mortgage.
"He's got it backward."
Homebuilder companies like Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) could become popular with investors under a Harris presidency and the call for millions of new homes. The SPDR Series Trust Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) offers exposure to homebuilder stocks.
Tax Cuts: Harris said she will restore two tax cuts that help 100 million or more middle class Americans.
The vice president said the earned income tax credit and child tax credit will allow millions of Americans to keep more income.
"We know this works," Harris said.
Part of the plan calls for $6,000 in tax relief for parents during the first year of a child's life.
Harris said Trump's plan for tax cuts involves handing cuts to billionaires and corporations.
"Look who they fight for. Donald Trump fights for billionaires."
Harris added that Trump's plans will "devastate the middle class."
SPY Price Action: The SPDR S&amp;P 500 ETF Trust is up 0.2% to $554.30 on Friday.
Check This Out:
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<li>Lawmakers Made Huge Investments This Year. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent081624">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>
Photo: Screenshot from CSPAN.

Harris Warns Trump Tax Plan Will 'Devastate Americans,' Vows To Go After 'Bad Actors' Behind Food Prices

Vice President Kamala Harris&#8217; campaign disclosed <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">policy proposals regarding the residential housing market </a>ahead of the Democratic Party candidate&#8217;s unveiling of her economic policy at an event in the key swing state of North Carolina. 
Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages. Among the policy proposals are:
<ul>
<li>Construction of three million new housing units to plug in the shortage in housing supply in the first four years.</li>
<li>Expanding the existing tax incentives for builders to build affordable rental housing.</li>
<li>Offering first-ever tax incentives for building starter homes.</li>
<li>Setting up a new federal fund to spur innovative housing construction.</li>
<li>A $25,000 down-payment support for first-time homeowners.</li>
</ul>
The Harris campaign also looks to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Here&#8217;s how the homebuilder stocks are trading in premarket trading, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data</a>:
<ul>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) climbed 3.2% to $82.65.</li>
<li>Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) gained 2.1% to $131.64.</li>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) added 0.30% to $175.81.</li>
<li>PulteGroup, Inc. (PHM) rose 0.39% to $123.</li>
</ul>
See Also:&nbsp;<a href="https://www.benzinga.com/money/best-home-builder-stocks" target="_blank" rel="noreferrer noopener">Best Home Builder Stocks</a>
Image generated using Midjourney

Homebuilding Stocks On Investors' Radar After Kamala Harris Reveals Plan To Boost Housing Market

Taking on price gouging and thrusting on sagging residential construction will likely be part of the agenda of a potential Democratic administration under Kamala Harris, according to a statement released by the Harris-[Tim] Walz campaign team. The statement is a prelude to Harris&#8217; first major economic speech scheduled to be made at a campaign rally in Raleigh, North Carolina on Friday.
Accent On Housing: Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages, excerpts of the statement shared on X <a href="https://x.com/search?q=HARRIS+CAMPAIGN&amp;src=typed_query&amp;f=top">showed. </a>The team said it looks forward to constructing three million new housing units to plug in the shortage in housing supply in the first four years, with involvement from both workers and the private sector. 
The Democrats under Harris will likely seek to expand the existing tax incentives for builders to build affordable rental housing, offer first-ever tax incentives for building starter homes and set up a new federal fund to spur innovative housing construction.
The team also plans to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Harris also proposed a $25,000 down-payment support for first-time homeowners, which will likely benefit four million first-time buyers over four years.
Harris&#8217; focus on housing as a key agenda comes at a time when homebuyers are disadvantaged by rising home rentals and higher home ownership costs, which is seen as a function of higher interest rates and the imbalance in housing supply and demand.
See Also: <a href="https://www.benzinga.com/money/best-home-builder-stocks">Best Home Builder Stocks</a>
Food Prices: Harris also suggested if elected, she would announce the &#8220;first-ever federal ban&#8221; on food price hikes, vesting federal authorities with sweeping powers to clamp down, the Washington Post <a href="https://www.washingtonpost.com/business/2024/08/15/kamala-harris-economic-policy-2024/">reported</a>, citing the statement released by the campaign.
This will set &#8220;clear rules of the road to make clear that big corporations can't unfairly exploit consumers to run up excessive corporate profits on food and groceries,&#8221; the statement reportedly said.
The Post reported that the vice president&#8217;s plan marks a further escalation in the economic populism of President Joe Biden.
Will Harris Go Further Left? The Biden administration went far left in terms of its policies, ranging from antitrust, trade, labor rights, industrial policy and also bypassed party consensus, with the government intervening in nearly every facet of the nation's economy, the Post said.
The vice president will largely tow in line with Biden&#8217;s policies, the report said, adding that apart from advancing her pet themes of care agenda, she would also be pro-union. 
One aspect in which she will diverge from Biden is how she approaches businesses, the report said, citing her meeting with JPMorgan&#8217;s Jamie Dimon in March. Zach Butterworth, who led private sector engagement for the White House and is currently a Lafayette Advisor, reportedly said, &#8220;Her team is smart to acknowledge there's a buildup of pressure in parts of the business community and it's worth talking to them. She knows they're an important voice.&#8221;
There are conflicting views regarding Harris&#8217; stance on anti-trust policy. While left-wingers within the party have called upon her to stand behind Federal Trade Commission&#8217;s Lina Khan, the vice president&#8217;s ties with tech executives could sway her toward a more lenient approach, it added. As recently as this week, rumors abound about search giant Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) being on the brink of being broken up amid FTC&#8217;s crusade against it due to its search dominance.
Harris&#8217; stances on cryptocurrencies will also be in the spotlight, given the current misgivings of the industry toward SEC Chair Gary Gensler&#8217;s tough position. 
The vice president has already made it clear she is for the elimination of taxes on tips &#8211; a <a href="https://www.benzinga.com/news/24/06/39244008/trump-pitches-plan-to-scrap-tax-on-tips-in-nevada-rally-culinary-union-responds-wild-campaign-promis">stance Trump also shares. </a>
Harris&#8217; campaign did a flip-flop on fracking, suggesting that the vice president is not against a total ban on it. Her team has also hinted at going back on banning cash bail, which facilitates the release of criminals by setting very low bail amounts, as well as healthcare, immigration and gun control, ABC News<a href="https://abcnews.go.com/US/wireStory/marijuana-death-penalty-fracking-common-harris-shifted-positions-112884794"> said.</a>
The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.79% to $110.97 on Thursday, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a> The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which ended Thursday&#8217;s session up 1.71% at $553.07, rose 0.17% in premarket trading on Friday.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40410895/anthony-scaramucci-says-kamala-harris-poll-numbers-are-driving-market-higher-predicts-ro">Anthony Scaramucci Says Kamala Harris&#8217; Poll Numbers Are Driving Market Higher, Predicts &#8216;Rough 81 Days&#8217; Ahead For Trump</a></li>
</ul>
Image Via Shutterstock

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Ahead Of Kamala Harris' First Economic Policy Speech In North Carolina, Campaign Provides Sneak-Peek: Focus On Perking Up Residential Construction And Food, Grocery Price Hike Ban

Mortgage rates fell to their lowest levels in over a year this week, spurred by rising market expectations of interest rate cuts by the Federal Reserve, bringing some much-needed <a href="https://www.benzinga.com/topic/real-estate-investing">relief to U.S. homebuyers.</a>
As of Aug. 7, the average 30-year fixed mortgage rate dropped by 26 basis points from the previous week, settling at 6.47%. This is the lowest rate since late May 2023, according to Freddie Mac data released on Thursday.
Similarly, the average 15-year fixed mortgage rate fell by 36 basis points from the previous week to 5.63%, the lowest level since April 2023.
&#8220;The decline in mortgage rates does increase prospective homebuyers' purchasing power and should begin to pique their interest in making a move,&#8221; Freddie Mac highlighted.
Additionally, this decrease in rates is already benefiting existing homeowners. The refinancing share of mortgage applications has climbed to nearly 42%, the highest since March 2022.
Read Also: <a href="https://www.benzinga.com/money/how-to-invest-in-real-estate">How To Invest in Real Estate In 2024</a>
<h3 class="wp-block-heading">Goldman Sachs Sees Home Prices Rising: Fed Rate Cuts Likely to Fuel Appreciation</h3>
&#8220;Bad news is (likely) good news for home price appreciation,&#8221; wrote Goldman Sachs analyst Vinay Viswanathan in a note Thursday, highlighting the investment bank&#8217;s optimistic outlook for the housing market.
Goldman Sachs has upwardly revised its forecasts for home price appreciation (HPA) in 2024 and 2025. The bank now expects full-year 2024 HPA to reach 4.5% and 2025 HPA to come in at 4.4%. These projections are notably higher than their previous forecasts of 4.2% and 3.2%, respectively.
The bullish outlook is underpinned by Goldman Sachs economists&#8217; prediction that the Federal Reserve will implement three rate cuts this year, each by 25 basis points. 
These anticipated cuts are expected to bring the 30-year conforming mortgage rate down to 6.5% by the end of 2024 and 6.1% by the end of 2025. These figures are slightly lower than the bank&#8217;s previous forecasts of 6.6% and 6.3%, respectively.
<h3 class="wp-block-heading">Mortgage-Linked Stocks Rally</h3>
The positive sentiment surrounding the recovery of the property market extended to mortgage-linked stocks. 
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which tracks stocks exposed to the residential property market, rose 0.6% on Thursday. 
Other sector funds, such as the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) and the iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>), saw gains of 0.9% and 0.8%, respectively.
Individual stocks in the mortgage business showed robust performance, with Rocket Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) and UWM Holdings Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) up by 3.3% and 4.5%, respectively.
Shares of companies involved in home construction also experienced a boost. The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) climbed 1.6%.
Read now: 
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40259139/tech-stocks-rally-after-5-day-slump-as-recession-panic-eases-nasdaq-100-movers-to-watch-thursday">Tech Stocks Rally After 5-Day Slump As Recession Panic Eases: Nasdaq 100 Movers To Watch Thursday</a></li>
</ul>
Photo: Shutterstock

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Mortgage Rates Fall To Lowest Level In Over A Year, Ease Pressure On Homebuyers: 'Good News For Home Price Appreciation'

After a turbulent week in the markets, the bulls reclaimed dominance on Wall Street during Friday&#8217;s session, with indices and sectors trading in positive territory as investors welcomed the latest corporate earnings results and further confirmation of inflation progressing toward <a href="https://www.benzinga.com/topic/interest-rates">the Fed&#8217;s 2% target.</a>
In June, the Personal Consumption Expenditure price index – the Fed&#8217;s preferred measure of inflation – dropped to 2.5% year-on-year, as anticipated, marking the lowest level since February 2021. The core component slightly exceeded expectations, remaining <a href="https://www.benzinga.com/top-stories/24/07/39987142/feds-favorite-inflation-gauge-keeps-falling-but-fed-wants-durable-downward-trend-economist-says">steady at 2.6% annually.</a>
Investors are unwavering in their expectations for a Fed interest rate cut in September, assigning it a 100% probability and factoring in nearly three cumulative rate cuts by year-end.
The Dow Jones Industrial Average led the charge on Friday, with the blue-chip index surging 1.9%, setting the stage for its strongest session this year. The tech-heavy Nasdaq 100 rebounded significantly, climbing 1.6%, which halted the tech sector&#8217;s decline but wasn&#8217;t enough to reverse a negative weekly close. 
The Russell 2000, as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), also posted a solid gain of 1.3%.
Rate-sensitive sectors continued their rally, with homebuilders, as tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>), rising over 3% for the day, reaching all-time highs and marking their third <a href="https://www.benzinga.com/markets/equities/24/07/39988310/homebuilder-stocks-rally-to-record-highs-on-rate-cut-frenzy-but-housing-sales-still-struggle">consecutive positive weekly close.</a>
In the bond market, Treasuries rose as yields dipped slightly, especially in longer-dated maturities.
Gold also rallied, increasing by 1%, while oil prices dropped by 1%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2.5%, marking its second consecutive positive session after three negative ones.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,712.07</td>
<td>1.9%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,483.84</td>
<td>1.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,116.90</td>
<td>1.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,252.38</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent072524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.5% higher to $546.75.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 2% to $407.34.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) rose 1.5% to $465.21.</li>
<li>Sector-wise, the Industrials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)&nbsp;outperformed, up by 2.3%, while the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, up 0.5%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
Stocks moving on earnings were:
<ul>
<li>3M Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>), up 19%. </li>
<li>Aon plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AON#NYSE">AON</a>) up 6.4%. </li>
<li>Avantor Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVTR#NYSE">AVTR</a>) up 12%.</li>
<li>Barnes Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/B#NYSE">B</a>), down 3%.</li>
<li>BJ&#8217;s Restaurants, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BJRI#NASDAQ">BJRI</a>), down 12%.</li>
<li>Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) down 10%. </li>
<li>Boyd Gaming Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYD#NYSE">BYD</a>), up 5.4%.</li>
<li>Bristol-Myers Squibb Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>), up 9.7%. </li>
<li>Centene Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) up 9.8%. </li>
<li>Charter Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) up 16.2%.</li>
<li>Colgate-Palmolive Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CL#NYSE">CL</a>) up 3.7%. </li>
<li>Deckers Outdoor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>) up 7.9%.</li>
<li>DexCom, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXCM#NASDAQ">DXCM</a>) down 42%. </li>
<li>Franklin Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEN#NYSE">BEN</a>) up 1.9%.</li>
<li> Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>) flat. </li>
<li>Mohawk Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHK#NYSE">MHK</a>) up 19%. </li>
<li>Newell Brands Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWL#NASDAQ">NWL</a>) up 39%. </li>
<li>Saia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAIA#NASDAQ">SAIA</a>) down 20%. </li>
<li>SkyWest, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKYW#NASDAQ">SKYW</a>) down 6.5%. </li>
<li>T. Rowe Price Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROW#NASDAQ">TROW</a>) down 2.8%. </li>
<li>VeriSign, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSN#NASDAQ">VRSN</a>) up 3.3%. </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/07/39970069/investors-go-all-in-on-small-caps-pour-over-6-billion-into-russell-2000-etf-this-month-they-will">Investors Go All In On Small Caps, Pour Over $6 Billion Into Russell 2000 ETF This Month: They &#8216;Will Return To Larger-Cap Alternatives,&#8217; Veteran Analyst Says</a></li>
</ul>
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VRSN

Wall Street Enjoys Late-Week Rally On Benign Inflation Data, Dow Jones Eyes Best Session Of 2024, Tech Unwinding Stalls: What's Driving Markets Friday?

Mortgage rates are on a steady decline as investors have cemented expectations for upcoming reductions in the federal funds rate, yet mortgage demand continues to <a href="https://www.benzinga.com/topic/real-estate-investing">depict challenges among homebuyers. </a>
The Mortgage Bankers Association has reported Wednesday that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) dropped by 5 basis points to 6.62% for the week ending July 19, 2024. 
This marks the lowest borrowing cost for home purchases since early February 2024.
Despite the decline in mortgage rates, long-term Treasury yields remained stable last week. The 30-year Treasury yield has held steady between 4.20% and 4.25% over the past week.
Market expectations for a 25 basis point rate cut in September hover at 100%, remaining unchanged from the previous week, according to the CME FedWatch Tool. 
<h3 class="wp-block-heading">Bumpy demand for mortgages</h3>
Despite the decline in mortgage rates, mortgage demand has shown some setbacks. While the <a href="https://www.benzinga.com/real-estate/reit/24/07/39816656/fed-rate-cut-expectations-drop-mortgage-rates-to-4-month-lows-surge-in-new-applications-refinanc">previous week&#8217;s drop in mortgage rates </a>spurred a sharp rise in new mortgage and refinancing applications, these trends were more subdued last week.
Mortgage applications fell by 2.2% week-over-week, while the refinance index edged up by 0.3% to 614.9, hitting the highest level since mid-August 2022.
On Tuesday, the National Association of Realtors reported a significant 5.4% decline in existing home sales for June. This drop is likely due to rising buyer apprehensions as median home prices reach new all-time highs. 
Jeffrey Roach, chief economist for LPL Financial, commented on the situation, stating, &#8220;The low supply of homes and high interest rates have depressed affordability to near-term lows. Because of the tight supply of homes available for sale, median prices continue to rise. We should not expect this dynamic to improve until mortgage rates drop and supply increases.&#8221;
<h3 class="wp-block-heading">Market Reactions</h3>
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) was flat during the premarket trading session on Wednesday, following a 1% rise on Tuesday.
The SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) fell 0.5% at the time of this writing, while the VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) rose 0.5%. 
The worst performers in the premarket among real estate stocks were: 
<ul>
<li>Gladstone Land Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAND#NASDAQ">LAND</a>) down 3.96%.</li>
<li>Compass, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COMP#NYSE">COMP</a>) down 3.96%.</li>
<li>Service Properties Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SVC#NASDAQ">SVC</a>) down 3.47%.</li>
<li>Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>) down 2.71%.</li>
<li>Office Properties Income Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPI#NASDAQ">OPI</a>) down 1.48%. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/24/07/39920377/us-home-sales-see-sharpest-monthly-decline-in-1-5-years-as-record-high-prices-keep-buyers-on-the-sid">US Home Sales See Sharpest Monthly Decline In 1.5 Years As Record High Prices Keep Buyers On The Sideline</a></li>
</ul>
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COMP

LAND

OPEN

XLRE

Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts

As <a href="https://www.benzinga.com//node/39583371">cities in the U.S. continue to break their historical heat records</a>, workers, lawmakers and businesses across the country are launching a debate: should the state grant protections for workers in extreme heat conditions?
Most of the country has been under heat alerts since rising temperatures began breaking comfortable levels in early July.
On Tuesday, meteorologists began warning people living in Midwestern and East Coast states. An upcoming heat wave is expected to break records in many cities, putting 140 million Americans under heat alert.
Earlier this month, at least 50 cities saw their historical heat records broken by a heat wave that affected most of the Southwest. Palm Springs, California and Las Vegas reached 124 and 120 degrees Fahrenheit, respectively, <a href="https://www.usatoday.com/story/news/weather/2024/07/11/temperature-records-heat-wave-west/74372547007/">USA Today </a>reported.
Many cities and localities in the East Coast are expected to surpass their historical average highs on this week.
The trend is global, with the last 13 months marking the highest temperatures on record for that month, according to official EU data from the Copernicus Programme.
The upcoming heat wave in the U.S. is expected to be dangerously lethal. At least 28 people have died this summer due to extreme heat events, according to a <a href="https://www.washingtonpost.com/climate-environment/2024/07/10/heat-wave-us-death-toll/">report</a> by the Washington Post.
<h3 class="wp-block-heading">Should Workers Have Federal, State Protections For Heat Risk?</h3>
Rising temperatures across the globe are forcing people to change their living habits, including how many hours of the day they can spend outside without air conditioning.
This has serious consequences for work, especially in sectors that require workers to be exposed to high temperatures under the sun for an extended period of time.
These encompass delivery and postal workers, the construction and agriculture sectors as well as those working in infrastructure repairs and gardening in urban environments, among others.
Read Also: <a href="https://www.benzinga.com//node/39799850">5 Things You Might Not Know About J.D. Vance: &#8216;Hillbilly Elegy&#8217; Author, Bitcoin Holder, First Millennial VP Pick And More</a>
Health risks for workers include "heat exhaustion and heat stroke, occupational injuries from high heat exposure such as burns or falls from dizziness, and exacerbation of preexisting conditions such as asthma, kidney disease, or heart disease," according to reports by the Center for Disease Control and the Occupational Safety and Health Administration (OSHA).
Earlier this month, the Biden administration proposed a new rule that, for the first time, could introduce protections for workers exposed to health risks due to rising heat levels, whether outdoors or indoors.
The proposal comes from OSHA, and outlines actions that employers should take to protect their employees from heat risks. If finalized, the rule could add protections for 35 million employees nationwide.
"The purpose of this rule is simple. It is to significantly reduce the number of work-related deaths, injuries and illnesses suffered by workers who are exposed to excessive heat and exposed to these risks while simply doing their jobs," an administration official told reporters on a press call, <a href="https://www.washingtonpost.com/climate-environment/2024/07/02/osha-workers-extreme-heat-protections/">according</a> to the Post.
The rule would introduce actions that employers must fulfill if the weather passes two specific temperature marks. Above 80 degrees Fahrenheit, employers must offer drinking water and break areas, as well as plan out the work schedule in an incremental rhythm for the bodies of workers to adapt to the heat.
At 90 degrees, employees must be monitored for signs of heat illness and take mandatory 15-minute breaks every two hours.
No federal heat protection law is in place, and only five states exercise worker safety precautions: California, Colorado, Minnesota, Oregon and Washington.
The timeline for OSHA's proposal would make it final by 2026. Its rollout will largely <a href="https://www.benzinga.com/general/politics/24/07/39780356/trumps-2024-election-betting-odds-hit-record-high-after-assassination-attempt-payouts-for-ex-pre">depend on who wins the U.S. presidency in November</a>. A victory for Donald Trump would likely threaten its existence.
High-profile Republicans have voiced opposition to worker protections for heat risk. Republicans have traditionally stood against policies related to climate change that are liable to impact businesses or industries.
In Florida, where some of the highest temperatures in the country have registered in recent years, Gov. Ron DeSantis, a Republican, recently signed a piece of legislation barring local governments from raising protections for workers exposed to heat.
Texas had passed a similar bill the previous year, which was dubbed the "Death Star law." The bill was ruled unconstitutional by a judge, after Houston, El Paso and San Antonio presented lawsuits against it.
<h3 class="wp-block-heading">Industry Impacts</h3>
Progressive voices like the Center for American Progress have written that exposing workers to heat risk can have bad consequences for the economy, including "lost worker productivity, increased health care costs and worker compensation claims, and threats to workers' financial stability from missing work."
For conservatives, adding protections for workers can reduce productivity for businesses and lead to a loss in competitiveness.
Business groups lobbying against the OSHA rule argue that trigger temperatures proposed by the rule should not be set as a blanket policy nationwide, as workers from different parts of the country have different tolerance thresholds for heat.
For workers in Florida, "an 80-degree threshold for them isn't going to be considered hot," said Prianka Sharma, vice president and counsel for regulatory affairs for The American Road &amp; Transportation Builders Association.
Multiple ETFs follow industries that can be affected by changes in policy around heat risk.
iShares US Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) is the largest ETF by total assets following the construction industry. It's followed by SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) and the Invesco Building &amp; Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKB#NYSE">PKB</a>).
Agriculture is another major sector that affected by the heat issue. The Invesco DB Agriculture Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBA#NYSE">DBA</a>) leads the list by total assets, with Teucrium Wheat Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEAT#NYSE">WEAT</a>) and First Trust Alternative Absolute Return Strat ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FAAR#NASDAQ">FAAR</a>) next.
Now Read:&nbsp;
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<li><a href="https://www.benzinga.com//node/39794934">3 Under-the-Radar Clean Energy Stocks With Upside Potential, Regardless Of Who&#8217;s In The White House</a></li>
</ul>
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First Trust Alternative Absolute Return Strategy ETF

FAAR

PowerShares ETF Trust Dynamic Building &nstruction Portfolio

WEAT

Scorching Heat Breaks Records, But 2024 Election Outcome May Hold Worker Protections Hostage

The larger-than-expected drop in the June Consumer Price Index inflation rate has fueled market expectations for interest rate cuts <a href="https://www.benzinga.com/topic/interest-rates">by the Federal Reserve.</a>
Investors no longer seem to have doubts and are assigning a 91% implied probability that rate cuts will begin as early as September 2024.
The upcoming Producer Price Index (PPI) inflation report, scheduled for release on Friday at 8:30 a.m. ET, will be crucial in determining whether producer price trends can continue to support rate-cut expectations or temper the optimism.
<h3 class="wp-block-heading">June PPI Preview: What Economists Expect</h3>
<ul>
<li>Producer prices in June are expected to rise 0.1% on the month versus an unexpected 0.2% decline in May, according to economist consensus estimates, as tracked by TradingEconomics. </li>
<li>On an annual basis, the PPI inflation is expected to accelerate from 2.2% to 2.3%.</li>
<li>Excluding food and energy, core PPI is expected to advance by 0.2% month-over-month, accelerating from the previous flat reading. </li>
<li>Annually, core producer prices are set to rise by 2.5%, up from 2.3% in May. That would mark the highest annual core producer inflation rate since August 2023. </li>
</ul>
<h3 class="wp-block-heading">5 ETFs To Watch Friday</h3>
On Thursday, traders favored markets poised to gain <a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">from future rate cuts,</a> investing in sectors that could benefit from reduced borrowing costs, while penalizing assets that had already heavily discounted expectations of monetary policy shifts.
The producer inflation data will be pivotal in evaluating if this market momentum will persist. 
Among Thursday&#8217;s top-performing exchange-traded funds, we can definitely mention:
<ul>
<li>SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) rallying 6.1%</li>
<li>Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) rising 4.4%</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) up 4.2%</li>
<li>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 3.6%</li>
<li>VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) up 2.9%</li>
</ul>
Read now: 
<ul>
<li><a href="https://www.benzinga.com/general/politics/24/07/39731800/biden-cheers-inflation-progress-rate-cut-chorus-grows-louder-among-5-economists-this-is-just-wha">Biden Cheers Inflation Progress, Rate Cut Chorus Grows Louder Among 5 Economists: &#8216;This Is Just What The JayMan Needed&#8217;</a></li>
</ul>
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Market Vectors ETF Trust Market Vectors Gold Miners

Could June Producer Inflation Data Dampen Market Enthusiasm For Rate-Cut Winners? 5 ETFs To Watch Friday

A lower-than-expected inflation report for June caused wild market reactions, leading to a surge in traders&#8217; expectations of Federal Reserve rate cuts and boosting assets that are particularly <a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">sensitive to high interest rates.</a>
As the annual inflation rate slowed from 3.3% to 3%, below the predicted 3.1%, and the monthly reading indicated the first contraction (-0.1%) in four years, traders swiftly increased their odds of a September rate cut, now placing a 92% chance.
Surprisingly, large-cap indices such as the S&amp;P 500 and the tech-heavy Nasdaq 100 index fell, dropping 0.9% and 2.1% respectively, with the latter eyeing its worst daily performance of 2024, previously seen on April 30. These reactions suggest that market participants had likely already priced in rate cut expectations into tech stock valuations and are now rotating from top-performing sectors to laggards.
The outperformance of the S&amp;P 500 real estate sector over tech by more than 5 percentage points marked the largest one-day relative change in over four years, indicating a potential sectoral shift.
Other assets making significant moves included small caps, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 3.3%, its strongest one-day return since mid-December 2023; gold, up 1.7%; and long-dated Treasury bonds, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rallying 1.5%.
Equity industries showing notable growth were those positively impacted by the prospects of lower interest rates. Homebuilders, tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>), were up 6.7% for the day, their strongest one-day performance since mid-December 2023. Regional banks, represented by the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), rose 3.4%. Gold miners, tracked by the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), climbed 2.4%, on track for their highest close since April 2022.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was flat at $57,800. 
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,120.27</td>
<td>3.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,754.72</td>
<td>0.1 %</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,583.95</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,246.76</td>
<td>-2.1%</td>
</tr>
</tbody>
</table>
</figure>
Updated at 1:05 PM ET
According to&nbsp;<a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent100924&amp;t=be2bearmibe3na1">Benzinga Pro&nbsp;data</a>:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.9% lower to $556.201.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.1% higher to $397.59.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) tumbled 2.1% to $492.83.</li>
<li>Sector-wise, the&nbsp;Real Estate&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)&nbsp;outperformed, up by 2.5%, while the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, falling 2.4%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
<ul>
<li>Tesla Inc. (TSLA) fell over 6%, after Bloomberg flagged delays in the Robitaxi project. </li>
<li>Top-performers within real estate stocks were Communications Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBA#NYSE">SBA</a>) Alexandria Real Estate Equities, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARE#NYSE">ARE</a>), both up 6.5%. </li>
<li>PepsiCo Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NYSE">PEP</a>) was 0.4% higher, following quarterly earnings. </li>
<li>Other stocks reacting to earnings were Delta Air Lines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), ConAgra Brands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAG#NYSE">CAG</a>), up 0.4% and down 2% respectively. </li>
<li>Caesars Entertainment Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NASDAQ">CZR</a>) rose 6.7%. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don">Inflation Data Sparks Rush For Gold, Real Estate, Treasuries, Yen: Traders See September Rate Cut As Done Deal</a></li>
</ul>
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Forex

iShares Trust Barclays 20+ Year Treasury Bond Fund

Tech Stocks Tumble As Small Caps, REITs, Gold Miners Rally; Soft June Inflation Ignites Rate Cut Expectations: What's Driving Markets Thursday?

The stars seem to be aligned for a reduction in U.S. interest rates in about two months, as the June inflation report released Thursday may provide policymakers with the confidence that annual consumer price changes are finally trending <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39728268/inflation-slows-more-expected-to-3-in-june-heightens-expectations-for-rate-cuts-t">toward the Fed&#8217;s 2% target.</a>
The inflation rate fell from 3.3% in May 2024 to 3% year-over-year in June 2024, the lowest since April 2021, according to the Bureau of Labor Statistics. The outcome fell short of the estimated 3.1%. On a month-over-month basis, the consumer basket contracted by 0.1%, marking the first negative reading since May 2020. 
The data sparked a surge in rate cut bets, triggering a rally in interest-rate-sensitive assets.
Market-implied odds for a September rate cut increased from 71% to 91% following the inflation report, according to the CME Group&#8216;s FedWatch tool. Additionally, the implied cuts by year-end rose to 65 basis points, suggesting between two and three rate cuts.
<h3 class="wp-block-heading">Investors Flock To Bonds, Low-Yield Currencies, Real Estate Stocks As Rate Cut Bets Rise</h3>
Yields on two-year Treasury notes tumbled 10 basis points to 4.51% at 11 a.m. ET, on track to hit the lowest since March. 11. Yields on long-dated Treasuries also fell markedly, sending the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) up by 1.2%.
The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), fell 0.6%, on track for the worst session since mid-May.
The low-yielding Japanese yen, tracked through the Invesco CurrencyShares Japanese Yen Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXY#NYSE">FXY</a>), rose 1.8%. The dollar-yen pair dropped to 158.73, marking the second-worst session year-to-date, as traders speculated that a potential Bank of Japan intervention accelerated the move, although authorities did not officially confirm it.
Gold prices, as monitored through the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), rallied 1.9% to $2,415 per ounce, marking the best-performing session since mid-December 2023 and nearing all-time highs.
The broader stock market fell, with the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), falling 0.4%, and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 1.4%. Rate-sensitive equity sectors and industries reacted differently Thursday, with real estate stocks outperforming.
The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) rose 2.5% by 11 a.m. ET, outperforming all other S&amp;P 500 sectors.
Among industries, homebuilders, as tracked by the SPDR Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) soared 5.4%, on track for their best day since mid-December 2023. 
Chart: Rate-Sensitive Assets Rally After Cooler-Than-Expected June Inflation Report
<figure class="wp-block-image size-large"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="596" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-1024x596.png" alt="" class="wp-image-431371" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-1024x596.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-768x447.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16-1536x894.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/11110510/image-16.png 1810w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Image: <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent071124&amp;t=be2bearmibe3na1">Benzinga Pro</a>
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Photo via Shutterstock.

Asia

Currency ETFs

PowerShares DB US Dollar Index Bullish Fund

Inflation Data Sparks Rush For Gold, Real Estate, Treasuries, Yen: Traders See September Rate Cut As Done Deal

What is the key to bringing home sale volume up and home prices down? America&#8217;s current problem is insufficient supply, according to a new report outlining trends in the <a href="https://www.benzinga.com/topic/housing-market">U.S. housing market</a>.
The Data: Freddie Mac&#8217;s May macroeconomic <a href="https://www.freddiemac.com/research/forecast/20240516-economic-growth-moderated-start-year?utm_source=www.resiclubanalytics.com&amp;utm_medium=referral&amp;utm_campaign=u-s-housing-market-is-1-5-million-housing-units-below-a-balanced-market-finds-freddie-mac">report</a> examined key trends in the housing and mortgage market.
While 2024&#8217;s <a href="https://www.benzinga.com/top-stories/24/06/39391685/fed-members-cool-on-raising-interest-rates-these-conditions-could-take-months-and-more-likely-quarte">higher-for-longer interest rate</a> environment remains the most obvious obstacle to lowering home prices, the report emphasized supply as a means to restore the market to balance.
According to the report, vacancy rates—a very low 0.8% for housing and 6.6% for renters—must be restored in line with historical averages to make a dent in housing prices. In the first quarter of 2024, the total number of for-sale and for-rent units was 1.5 million below the balanced supply.
Why it Matters: Home prices have reached record levels in 2024. In June, the median sale price of a U.S. home hit an&nbsp;<a href="https://www.benzinga.com/real-estate/24/06/39337282/u-s-home-prices-hit-record-high-as-mortgage-rates-start-to-decline">all-time high</a>&nbsp;of $394,000. The median price for renting has <a href="https://www.benzinga.com/real-estate/23/06/32719718/despite-high-rental-rates-americans-are-putting-off-home-buying-in-record-numbers">also risen steadily</a> in recent months, albeit showing some signs of slowing. 
The rising price of homes has made the American dream of owning a home unsustainable for many Americans, especially members of Generation Z.
Increasing the U.S. housing supply is a logical solution to bringing housing prices down and making shelter affordable for most Americans.
Market Implications: Companies involved in residential construction stand to benefit if there&#8217;s a push to increase housing supply. These include major homebuilders such as D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), Lennar Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and PulteGroup, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>). Increased demand for new housing units could drive up their revenues.
The iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) and the SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) are among the largest exchange-traded funds tracking the home construction sector. The iShares U.S. Basic Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYM#NYSE">IYM</a>) tracks materials, some of which are used in construction.
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Image generated using artificial intelligence via Midjourney.

iShares Trust Dow Jones US Basic Materials Sector Index Fund

US Needs 1.5 Million More Homes To Tame Record Prices

A leading market strategist thinks the markets could pause ahead of several key market index events and start of the second half of the year, with stock indexes trading <a href="https://www.benzinga.com/markets/equities/24/06/39418966/s-p-500-nasdaq-100-dip-from-record-highs-as-investors-take-chipmaker-profits-energy-sector-rebou">at all-time highs.</a>
What Happened: Technology giant NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recently passed Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to briefly become the <a href="https://www.benzinga.com/news/24/06/39386946/microsoft-apple-step-aside-nvidia-is-now-the-most-valuable-public-company-in-the-world">most valuable company in the world.</a>
The 200% gain for Nvidia shares in the last year has helped major stock indexes, but could also lead to changes from investors in the second half of 2024.
"I think we're a little out over our skis," Freedom Capital Markets Chief Global Strategist Jay Woods <a href="https://www.cnbc.com/video/2024/06/20/the-market-is-due-for-a-pause-says-freedom-capitals-jay-woods.html?__source=sharebar%7Ctwitter&amp;par=sharebar">said </a>in a CNBC interview.
Woods cited <a href="https://www.benzinga.com/news/24/06/39368302/state-street-technology-etf-to-put-nvidia-before-apple-in-revamp">the major rebalancing</a> of the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) that will see Nvidia as a larger holding. Woods also mentioned it was changing at the top for market capitalization dominance among the three companies.
"That's changing how people are restricting their portfolios."
<a href="https://x.com/JayWoods3">Woods </a>said technical show stocks and indexes above major moving averages led to "a lot of euphoria in the market."
"After awhile, you're gonna pause."
Woods said the rebalancing of XLK and reconstitution of the Russell 2000 are key events coming around the second half of the year. Investors could be looking to cut back on their exposure to Nvidia after the sharp run-up in the first half of 2024, Woods said.
"A pause given the great run we've had is just a normal, routine thing."
Woods said, "now's the time if you have profits to book them."
Related Link: <a href="EXCLUSIVE: Nvidia Dow Jones Inclusion 'A Matter Of When' — Will It Replace Int">EXCLU</a><a href="https://www.benzinga.com/top-stories/24/05/39011237/exclusive-nvidia-dow-jones-inclusion-a-matter-of-when-will-it-replace-intel">SIVE: Nvidia Dow Jones Inclusion &#8216;A Matter Of When&#8217; — Will It Replace Intel?</a>
 What's Next: While Woods sees a pause happening in the short term, he remains bullish on the market going forward.
"I still think this is early, AI leading the way," Woods said.
With a potential pullback in technology stocks and leaders like Nvidia, Woods is highlighting some other areas that could spell opportunity.
"I like the financials here."
Woods said July 12 is a key date to watch with JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reporting quarterly financials and kicking off the sector.
Investors looking for exposure to the financials sector have many ETFs to choose from including the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Woods also likes homebuilder stocks with mortgage rates going under 7%. The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) is a leading homebuilder ETF option for investors.
While the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has hit record highs, the Russell 2000 hasn't had the same returns, up less than 1% on the year.
Woods said the Russell 2000 could play catch up to the other indexes in the second half of 2024.
"When it runs, it runs quickly."
The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) tracks the Russell 2000 Index.
Woods said he's not predicting more than one cut the rest of 2024 and investors will likely try to position their portfolios based on the items above.
"People are going to look for value as we start the second half of the year."
Read Next: <a href="https://www.benzinga.com/markets/penny-stocks/24/06/39437829/nvidia-shorts-are-down-big-ai-chipmaker-is-most-shorted-stock-hedge-to-the-overall-market-an">Nvidia Shorts &#8216;Are Down Big&#8217;: AI Chipmaker Is Most Shorted Stock, &#8216;Hedge To The Overall Market And The Tech Sector&#8217;</a>
Photo: Shutterstock

AAPL

MSFT

Market Could Take Normal, Routine Pause After Record Highs, Strategist Says: 'Now's The Time If You Have Profits To Book Them'

Kashkari Said We Are In A High Pressure Economy In Some Dimensions, But Some Signs It's Cooling; Job Market Has Performed Better Than Expected; May Be More Cooling

Kashkari Said Best Thing Fed Can Do For Housing Is To Get Inflation Down

Kashkari Said Median Projection Is For One Cut, That's Likely To Be Toward End Of The Year; Said We Need To See More Evidence To Convince Us Inflation Is Heading To 2%

Minneapolis Fed President Kashkari, Speaking On CBS' 'Face The Nation', Said Reasonable That Rate Cut Could Come In December

A lower-than-expected inflation report for May ignited a bullish frenzy on Wall Street, with investors increasing their bets on rate cuts, bolstered by growing confidence that the Federal Reserve will ease its policy stance later this year as price pressures trend <a href="https://www.benzinga.com/markets/equities/24/06/39289912/us-inflation-eases-more-than-expected-in-may-boosts-2024-rate-cut-prospects-ahead-of-wednesdays-">towards the 2% target.</a>
The Consumer Price Index (CPI) data revealed cooler-than-anticipated monthly and annual inflation rates for both headline and core items. 
This report arrives just ahead of the highly anticipated Federal Open Market Committee (FOMC) meeting, which will commence <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39294739/how-mays-inflation-slowdown-could-influence-feds-next-move-insights-from-6-economis">at 2:00 p.m. ET today.</a>
The implied probability of a rate cut by September has surged to 72%, up from 54% before the inflation report. Fed futures now indicate a 55 basis points reduction (equivalent to two rate cuts) by year-end.
In response to rising expectations for rate cuts, traders quickly pivoted to riskier assets.
The tech-heavy Nasdaq 100 climbed 1.4% to over 19,400 points, setting new record highs. The S&amp;P 500 Index increased by 1.1% to surpass 5,400 points, also achieving fresh all-time highs.
Blue-chip stocks saw a modest rise of 0.2%, but the standout performance came from small caps. The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) surged 2.7%, marking its best session since mid-December 2023.
Treasury yields plummeted across the board, with the 2-year yield dropping 15 basis points to 4.68%. Long-dated yields also declined by approximately 10 basis points, propelling the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) up by 1.6%, its strongest one-day performance since early February 2024.
Industries sensitive to interest rates saw significant gains. The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) and the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) soared 4.6% and 3.5%, respectively.
Precious metals also rallied on the back of lower yields and a weakening dollar, with gold rising 0.8% and silver surging 2.8%.
Cryptocurrencies experienced sharp rallies driven by the risk-on sentiment. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) jumped 3.6% to $69,800, while the more speculative Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) surged over 8% on the day.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,072.95</td>
<td>2.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,471.20</td>
<td>1.4%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,435.07</td>
<td>1.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,819.58</td>
<td>0.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:15 p.m. ET</figcaption></figure>
According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.1% higher to $542.76.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;was 0.2% higher to $388.81.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA: <a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) was 1.4 higher to $474.65.</li>
<li>Sector-wise, the&nbsp;Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)&nbsp;outperformed, up by 2.6%, while the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 0.8%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) rose 4.7%, surpassing Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) as the world&#8217;s biggest company. </li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rallied over 4%, following <a href="https://www.benzinga.com/etfs/specialty-etfs/24/06/39294523/cathie-wood-ark-invest-set-new-2-600-price-target-for-tesla-every-car-becomes-an-ai-powered-c">Cathie Wood&#8217;s bullish projection</a> on the EV maker. </li>
<li>The top performers among real estate stocks were Zillow Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/Z#NASDAQ">Z</a>), eXp World Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXPI#NASDAQ">EXPI</a>) and Redfin Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RDFN#NASDAQ">RDFN</a>), with gains of 13.7%, 11% and 9.4%, respectively. </li>
<li>Among the subset of stocks exposed to the office and commercial real estate sector, SL Green Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>) and Vornado Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNO#NYSE">VNO</a>) rose 8.3% and 8%, respectively.</li>
<li>Within the regional bank industry, First Foundation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FFWM#NYSE">FFWM</a>) and Western Alliance Bancorp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>) rose the most, up 7.5% and 7%, respectively. </li>
<li>Caseys General Stores Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CASY#NASDAQ">CASY</a>) skyrocketed over 17% in reaction to stronger-than-expected quarterly earnings and revenue. </li>
<li>Other stocks reacting to company earnings are Oracle Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NASDAQ">ORCL</a>) up 12.7%, Autodesk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) up 5.3%, Rubrik Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBRK#NYSE">RBRK</a>) down 4.9%. </li>
<li>Companies set to report their earnings after Wednesday&#8217;s close are Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Dave &amp; Busters Entertainment Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLAY#NASDAQ">PLAY</a>), and Oxford Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXM#NYSE">OXM</a>). </li>
</ul>
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Image generated using artificial intelligence via Midjourney.

$DOGE

ADSK

CASY

EXPI

FFWM

ORCL

PLAY

RBRK

RDFN

TSLA

Bulls Push Wall Street To Record Highs On Declining Inflation; Tech, Real Estate, Small Caps Surge Ahead Of Fed Meeting: What's Driving Markets Wednesday?

A cooler-than-expected U.S. inflation report fueled a rally on Wall Street, ahead of the highly anticipated Federal Open Market Committee (FOMC) <a href="https://www.benzinga.com/markets/equities/24/06/39289912/us-inflation-eases-more-than-expected-in-may-boosts-2024-rate-cut-prospects-ahead-of-wednesdays-">meeting at 2:00 p.m. Wednesday.</a>
What happened: Inflation slowed to 3.3% annually in May, below both the expected and previous rate of 3.4%. On a monthly basis, the Consumer Price Index (CPI) remained flat, below the anticipated 0.1% increase and a significant drop from April&#8217;s 0.3% rise.
Additionally, the core measure of inflation, which excludes energy and food, weakened more than predicted. Annually, core inflation slowed from 3.6% to 3.4%, falling short of the 3.5% expectation.
Why it matters: Lower-than-expected inflation data is bolstering hopes for a steady return to the Federal Reserve&#8217;s 2% target and raising expectations for interest rate cuts later this year.
Markets are now assigning a probability of over 70% for a September rate cut, up from 54% before the inflation report. Notably, Fed futures now indicate 55 basis points of rate cuts priced in by the end of the year, implying two rate cuts.
Prospects of a declining cost of borrowing are aiding interest-rate sensitive sectors and stocks, which had lagged in recent weeks due to fears of prolonged higher rates.
Market reactions: Small caps, as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), were the brightest spot in the market, opening 2.9% higher and on track for the best-performing day year to date.
Chart: Small Caps Eye Best Day Since Mid-December 2023
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/12094652/image-30-1024x500.png" alt="" class="wp-image-384572" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/12094652/image-30-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/12094652/image-30-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/12094652/image-30-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/12094652/image-30-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/12094652/image-30.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
In comparison, large-cap indices such as the S&amp;P 500, the Nasdaq 100, and the Dow Jones Industrial Average were all about 0.9% higher.
Sector-wise, real estate and materials were the best performers, with the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) up 2.2% and 1.6%, respectively.
Industry-wise, homebuilders, regional banks, solar, and biotech stocks were the top performers, showing notable increases.
<ul>
<li>SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) up 4%</li>
<li>Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) 3.9%</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) up 3.3%</li>
<li>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>) up 2.3%</li>
</ul>
According to <a href="https://pro.benzinga.com/dashboard">Benzinga pro</a> data the top-performing stocks (with at least $1 billion of market cap) in the hour following the U.S. inflation report were: 
<ol>
<li>Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>): 7.87%</li>
<li>Array Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARRY#NASDAQ">ARRY</a>): 7.65%</li>
<li>Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>): 7.44%</li>
<li>Element Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESI#NYSE">ESI</a>): 6.78%</li>
<li>TeraWulf Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WULF#NASDAQ">WULF</a>): 6.68%</li>
<li>Iamgold Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAG#NYSE">IAG</a>): 6.55%</li>
<li>Globus Medical Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GMED#NYSE">GMED</a>): 6.04%</li>
<li>Dyne Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DYN#NASDAQ">DYN</a>): 5.99%</li>
<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>): 5.93%</li>
<li>Upstart Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPST#NASDAQ">UPST</a>): 5.75%</li>
</ol>
Looking ahead, traders are now eagerly anticipating the Federal Open Market Committee (FOMC) meeting. The statement and new macroeconomic projections will be released at 2:00 p.m. ET, followed by Fed Chair Powell's press conference at 2:30 p.m. ET.
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<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Jerome Powell Speaks, FOMC Press Conference &#x7C; June 12th, 2024" width="500" height="281" src="https://www.youtube.com/embed/dt2EqXr84ks?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39252500/fed-meeting-preview-economists-predict-steady-rates-in-june-fewer-cuts-ahead">Fed Meeting Preview: Economists Predict Steady Rates In June, Fewer Cuts Ahead</a>
Photo: Shutterstock

Macro Notification

ARRY

ENPH

GMED

UPST

WULF

Soft Inflation Data Boosts Small Caps, Real Estate, Regional Banks; Traders Anticipate Fed Rate Cuts As Stocks React

Wall Street has been on a remarkable rally so far this year, with all three major indices near record highs. Solid corporate earnings, Fed rate cut bets and booming AI have been driving the rally. 
Earnings grew 6% in the first quarter of 2024, the highest growth rate seen in nearly two years. The recent economic data showed that the U.S. economy is back on course for another solid GDP gain in the second quarter. U.S. business activity growth accelerated sharply to its fastest pace in more than two years in May after two months of slower growth, led by an upturn in the service sector. Consumer confidence, as indicated by the Conference Board&#39;s gauge of sentiment, increased in May after three months of decline. 
Further, Wall Street has become more bullish on stocks, given the improving outlook for both earnings and economic growth. Over the past two weeks, three equity strategists tracked by Yahoo Finance have boosted their year-end targets for the S&amp;P 500. The median target on Wall Street for the benchmark index now sits at 5,250, up from the median target of 4,850 on Dec 30, per Bloomberg data. 
However, uncertainty about the timing of Fed rate cuts will weigh on investors&#39; sentiment in the coming weeks. The latest data from the Institute for Supply Management showed that U.S. manufacturing contracted in May for the 18th time in 19 months, hit particularly hard by high interest rates. 
The latest Fed minutes highlight concerns over stubborn inflation. While inflation has eased over the past year, it failed to show further progress toward the Fed&#39;s 2% objective in recent months. As such, the disinflation process would likely take longer than previously thought, per Fed minutes. Additionally, geopolitics will continue to be an overhang. 
Against such a backdrop, investors could be well served by ETFs from sectors that house the top-ranked industries.
<h3>Here&#39;s How to Find the Top-Performing Sectors</h3>
While identifying the top-performing sectors is a daunting task, the Zacks Sector Rank makes this process simpler. The Zacks Sector Rank is determined by calculating the average Zacks Rank for all the stocks in the sector and then assigning an ordinal rank to it. For example, a sector with an average Zacks Rank of 1.6 is better than a sector with an average Zacks Rank of 2.3. So, the sector with the better average Zacks Rank would get a better Zacks Sector Rank. 
Zacks classifies all stocks into one of 16 sectors. The average Zacks Rank is calculated for every sector every day. So, if a sector has the best average Zacks Rank, it would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Rank Sectors. 
The top 8 Zacks Ranked Sectors would be in the top 50% of sectors, whereas the bottom 8 Zacks Ranked Sectors would be in the bottom 50% of sectors. 
We have selected one ETF, with a Zacks ETF Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold), from some of the top-ranked sectors. 
Construction: Zacks Sector Rank 1 
Amid the twin headwinds of high prices and still high mortgage rates, the U.S. housing sector looks attractive given that about 70% of the industries in this sector are top-ranked, with Heavy Construction and Homebuilders having an Industry Rank in the top 10%. 
SPDR S&amp;P Homebuilders ETF (ARCA:XHB) provides exposure to homebuilders with a well-diversified exposure across building products, homebuilding and home improvement retail. It tracks the S&amp;P Homebuilders Select Industry Index, holding 35 stocks in its basket. SPDR S&amp;P Homebuilders ETF is the most popular option in the homebuilding space, with AUM of $1.8 billion and an average daily volume of 2.4 million shares. The product charges 35 bps in annual fees and has a Zacks ETF Rank #3. 
Consumer Staples: Zacks Sector Rank 4 
The consumer staples saw the Zacks Sector Rank jump by three notches from 7 last week. The sector generally acts as a haven amid political and economic turmoil. Stocks in these sectors generally outperform during periods of low growth and high uncertainty. Publishing &ndash; Newspapers, Funeral Services, Staples Products, and Soap and Cleaning Materials are placed in the top 19% of industries. 
Consumer Staples Select Sector SPDR Fund (ARCA:XLP) is the most popular consumer staples ETF with AUM of $15.2 billion and an average daily volume of 12.5 million shares. It offers exposure to companies primarily involved in the development and production of consumer products that cover food and drug retailing, beverages, food products, tobacco, household products, and personal products. Consumer Staples Select Sector SPDR Fund follows the Consumer Staples Select Sector Index and holds 38 stocks in its basket. XLP charges 9 bps in annual fees and currently has a Zacks Rank #3. 
Materials - Zacks Sector Rank 5 
The materials sector, which tends to be the most sensitive to global economic growth expectations, is expected to see smooth trading given improving global economy. The Zacks Sector Rank moved to 5 from 6 last week. 
Vanguard Materials ETF (ARCA:VAW) has amassed $3 billion in its asset base and offers exposure to 116 stocks by tracking the MSCI US Investable Market Materials 25/50 Index. The ETF has 0.10% in expense ratio, while volume is small at 40,000 shares. Specialty chemicals and industrial gases take the largest share at 25.3% and 20.8%, respectively. The product has a Zacks ETF Rank #2 with a Medium risk outlook. 
Industrials - Zacks Sector Rank 5 
The industrials sector is set to benefit as business conditions have improved and demand seems to be solid. About 70% of the industries fall under the top-ranked category. Manufacturing - Material Handling, Wire and Cable Products, Uniform and Related, Metal Products - Procurement and Fabrication, Manufacturing - Thermal Products, Steel - Pipe and Tube are placed in the top 6%. 
Industrial Select Sector SPDR (ARCA:XLI), with a Zacks ETF Rank #2, looks like an exciting pick. It targets the broad industrial sector and follows the Industrial Select Sector Index. XLI holds 79 stocks in its basket and is well spread out across sectors, with aerospace &amp; defense, machinery, and ground transportation making up for a double-digit share each. Industrial Select Sector SPDR is the most popular ETF with AUM of $18 billion and an average daily volume of around 8.5 million shares. It charges 9 bps in fees per year. 
Aerospace - Zacks Sector Rank 7 
The aerospace and defense sector tends to benefit from rising geopolitical tensions, which result in increased defense spending worldwide. iShares U.S. Aerospace &amp; Defense ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/ita#BATS">ITA</a>) provides exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment by tracking the Dow Jones U.S. Select Aerospace &amp; Defense Index. It holds 34 stocks in its basket with AUM of $6.3 billion and an expense ratio of 0.40%. 
iShares U.S. Aerospace &amp; Defense ETF trades in an average daily volume of around 426,000 shares. It has a Zacks ETF Rank #2 with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2283422/5-top-ranked-sector-etfs-to-buy-in-june?cid=CS-BENZ-FT-etf_news_and_commentary-2283422">To read this article on Zacks.com click here.</a>

iShares Dow Jones US Aerospace & Defense Index Fund

5 Top-Ranked Sector ETFs to Buy in June

Weekly Market Pulse: What Will The Fed Do?

Homebuilders are seeing an uptick, here are the best performing - JPM

Wells Fargo sees further rally in home improvement stocks if Fed sets measured guidance

America's Car-Mart Continues To Struggle

The Federal Reserve is set to cut interest rates for the first time in four years. And there's one sector that is about to soar even higher … homebuilders.

Fed's First Rate Cut In Four Years Could Propel This Sector To New Heights

Housing demand must strengthen to justify high homebuilder values: BofA

Mortgage rates continue to decline reviving purchase, refinance demand

In this video, Ira Epstein reviews the day's trading in various SPDR-ETF markets for the trading day that ended, Thursday, September 19.

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SPDR Series Trust SPDR Homebuilders ETF

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