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

Like
Comment
Favorite

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

seekingalpha09-18 23:38

Home improvement stocks appear on the cusp of advancing further if the Federal Reserve delivers firm forward policy guidance, Wells Fargo Securities said. Fed funds futures heading much lower in the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

No comments yet

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2468671534?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1059832880/image_1059832880.jpg","is_english":true,"pubTime":"2024-09-18 23:38","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2468671534","market":"hk","top_or_hot":-1,"title":"Wells Fargo sees further rally in home improvement stocks if Fed sets measured guidance","media":"seekingalpha","content":"<div>\n<p>Home improvement stocks appear on the cusp of advancing further if the Federal Reserve delivers firm forward policy guidance, Wells Fargo Securities said.  Fed funds futures heading much lower in the ...</p>\n\n<a href=\"https://seekingalpha.com/news/4150724-wells-fargo-sees-further-rally-in-home-improvement-stocks-if-fed-sets-measured-guidance\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wells Fargo sees further rally in home improvement stocks if Fed sets measured guidance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWells Fargo sees further rally in home improvement stocks if Fed sets measured guidance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-18 23:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4150724-wells-fargo-sees-further-rally-in-home-improvement-stocks-if-fed-sets-measured-guidance><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Home improvement stocks appear on the cusp of advancing further if the Federal Reserve delivers firm forward policy guidance, Wells Fargo Securities said.  Fed funds futures heading much lower in the ...</p>\n\n<a href=\"https://seekingalpha.com/news/4150724-wells-fargo-sees-further-rally-in-home-improvement-stocks-if-fed-sets-measured-guidance\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SDS","symbol_name":"两倍做空标普500ETF","start_time":0,"source_url":"https://seekingalpha.com/news/4150724-wells-fargo-sees-further-rally-in-home-improvement-stocks-if-fed-sets-measured-guidance","article_id":"2468671534","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1059832880/image_1059832880.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468671534","pubTimestamp":1726673938,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Home improvement stocks appear on the cusp of advancing further if the Federal Reserve delivers firm forward policy guidance, Wells Fargo Securities said.  Fed funds futures heading much lower in the ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SDS":"两倍做空标普500ETF","LEN":"莱纳建筑公司","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","SPXU":"三倍做空标普500ETF","BK4550":"红杉资本持仓","WFC":"富国银行","SH":"标普500反向ETF","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","SHW":"宣伟公司","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","SPY":"标普500ETF","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","XHB":"房屋建筑商指数ETF-SPDR","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC",".SPX":"S&P 500 Index","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","OEX":"标普100","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","BK4088":"住宅建筑","LU0302445910.USD":"SCHRODER ISF GLOBAL CLIMATE CHANGE EQUITY \"A\" ACC","BLDR":"Builders FirstSource","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","LOW":"劳氏","DHI":"霍顿房屋","OEF":"标普100指数ETF-iShares","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","IVV":"标普500指数ETF","CFA.SI":"NikkoAM-STC Asia REIT","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU1674673428.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AC\" (USD) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","TOL":"托尔兄弟","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","HD":"家得宝","SSO":"两倍做多标普500ETF"},"translate_title":"富国银行预计，如果美联储制定谨慎的指引，家居装修股将进一步上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XHB":1,"SHW":1,"SPY":1,"TOL":1,"US10Y.BOND":1,"US12M.BOND":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"LOW":1,"WFC":1,"BLDR":1,"CFA.SI":1,"DHI":1,"HD":1,"LEN":1,"US7Y.BOND":1,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEX":0.6,"ESmain":0.6,"IVV":0.6,"OEF":0.6,".SPX":0.6},"content_text":"Home improvement stocks appear on the cusp of advancing further if the Federal Reserve delivers firm forward policy guidance, Wells Fargo Securities said.  Fed funds futures heading much lower in the first half of 2025 and a clearer outlook from the Fed are positive for consumers, levered firms, and mortgage rates, Wells Fargo Equity Analyst Christopher Harvey said in a note Wednesday, ahead of the Fed’s September policy announcement.  Home improvement stocks such as Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) are beginning to rally, and “we think this is the start of a bigger move for the group,” he said.  “We think [the Fed] communicating a measured pace would be more helpful for planning and volatility, a key for mortgage spreads,” he said. “Rate vol is beginning to decay, and as the Fed's path is better understood it should reduce uncertainty and ultimately spreads,” which is a “big plus” for housing and consumers, Harvey said.  Since the S&P 500 (SP500)(SPY)(IVV) on Sept. 11 staged a dramatic intraday turnaround to surge, Lowe’s (LOW) has risen ~3.8% and Home Depot (HD) has picked up 3%.  Harvey said rate volatility has significant influence over 30-year mortgage spreads (3-yr mortgage rate less 10-yr Treasury), and a lower rate of vol typically leads to tighter spreads, and vice-versa. Harvey included this chart:   Policymakers need to be more definitive about their forward path after having “ample opportunity” to evaluate inflation and employment trends, Harvey said.  Bank of America (BofA) separately this week noted that home builder and building product stocks have rallied since early July as 30-year mortgage rates fell to ~6.2% from 7% with investors anticipating Fed rate cuts. “Housing sector outperformance ahead of rate cuts is consistent with prior cycles, but the magnitude and valuations are higher this time around,” Rafe Jadrosich, research analyst at BofA, said. “Stock performance following the first cut is more mixed although usually positive for homebuilders.”  Since July through Tuesday, the SPDR S&P Homebuilders ETF (NYSEARCA:XHB) has risen ~21%. Constituents Home Depot (HD) and Lowe’s (LOW) have climbed 11% and 16% during that period. Here’s how other (XHB) holdings have performed during the time:  D.R. Horton (NYSE:DHI) +38.6%   Lennar (NYSE:LEN) +26.4%   Sherwin-Williams (NYSE:SHW) +26.7%  Builders FirstSource (NYSE:BLDR) +40%   Toll Brothers (NYSE:TOL) +30.8%","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"Policy And Regulatory","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}