Homebuilder investors celebrate Fed rate cut

Hovnanian Enterprises

03/03/2020 18:40

March 3 (Reuters) -   ** While much of the market was wary
of the U.S. Federal Reserve's rate cut on Tues, investors in
homebuilders sent those stocks soaring as they seemed to bet
that cheaper loans would prompt consumers to buy homes
   ** PHLX Housing index  .HGX  up 1.1% and the S&P 500
Homebuilding index  .SPLRCHOME  of three stocks is rallying 3.2%
adding to a 3.3% gain in the  previous day's session. Meanwhile
the broader S&P 500  .SPX  is down 2.0% after it climbed 4.6% in
Mon session 
   ** Homebuilders gaining: LGI Homes  LGIH.O  up 4.5% and
Hovnanian Enterprises  HOV.N  rising 4.1%. Lennar  LEN.N  up
4.2% while Meritage Homes is climbing 3.8%

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))