The Dow Jones Industrial average plunged 205 points, or 1.52%, closing at 13,343 on Friday, adding a dose of pessimism to mildly optimistic housing data from the week.
The Dow’s drop, which analysts compared to the 1987 stock plunge, didn’t necessarily kill the momentum homebuilders found earlier in the week when home starts were reported to be on the rise. But bank and builder stocks finished the week with mostly unimpressive results.
Bank of America’s (BAC) stock barely moved the needle when comparing Friday’s close to the company’s price at opening. Wells Fargo’s (WFC) stock edged down slightly, along with JPMorgan Chase (JPM).
Citigroup (C) took the biggest hit with its stock down 3% at market close before rising somewhat in after-hours trading. The banking giant made headlines earlier in the week when its CEO Vikram Pandit stepped down.
Homebuilders, on the other hand, are still feeling some momentum from rising home starts, which suggested a mildly positive turn on the home construction side of the housing market.
KB Home (KB) finished the week up 1.02%, while Pulte Group Inc. (PHM) and luxury builder Toll Brothers (TOL) rose just over 1%. D.R. Horton’s (DHI) edged down slightly, while Lennar (Len) inched up.
Still, the housing sector is facing some uncertainty.
September existing-home sales fell slightly from the previous month in September, but remain well above year-ago levels, according to the National Association of Realtors.
kpanchuk@housingwire.com
