OPEN - Why Opendoor Home Depot and NVR Inc. Rallied Today
2024-06-12 16:01:00 ET
Shares of housing-related companies Opendoor (NASDAQ: OPEN) , Home Depot (NYSE: HD) , and NVR, Inc. (NYSE: NVR) rallied today, up 6.5%, 3%, and 2.1%, respectively, as of 3:20 p.m. EDT. However, all three stocks had been up significantly more earlier in the day. At one point, Opendoor had rocketed 19.2% higher at Wednesday's highs.
These housing-related names all rallied after this morning's softer-than-expected Consumer Price Index (CPI) report from May, which spurred a rally in rate-sensitive stocks like these three. However, the late-day fade in the rally also offers some caution for investors today as well, as commentary from the Federal Reserve's June meeting wasn't quite as enthusiastic.
In May, the CPI was only flat month over month and up 3.3% year over year. That was softer than the expected 0.1% and 3.4%, respectively. On a "core" basis excluding volatile food and energy prices, inflation was a bit higher at 0.2% month over month and 3.4% year over year. Still, that was also softer than expectations. In response, the yield on the 10-year Treasury bond fell 11 basis points to 4.295%, which helped virtually all long-duration assets, including most stocks.
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Why Opendoor, Home Depot, and NVR, Inc. Rallied Today