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Market Insights: Housing Strength, Harrah's Acquisition, and Wal-Mart's Same-Store Sales

Strategic Insights

— 1 min read

The stock market is experiencing a notable surge in housing stocks, with the ISE Homebuilders Index rising over two percent higher and nearing its highs for the session. This momentum is largely attributed to a better-than-expected construction spending report, which has been a driving factor in the group's recent gains. Housing is seen as a potential major bottom, and investors are taking advantage of this trend by buying into sector leaders such as Ryland Group and Meritage Homes.

Key Takeaways:

  • The ISE Homebuilders Index has risen over two percent higher, nearing its highs for the session, driven by a better-than-expected construction spending report.
  • Harrah's Entertainment (NYSE:HET) has surged over 17 percent higher after announcing a buyout offer from Apollo Management and Texas Pacific Group valuing the company at $81 per share.
  • Wal-Mart Stores (NYSE:WMT) has reported a same-store sales increase of 1.8 percent in September, which reflects "tough selling comparisons" against last year's numbers when sales were boosted by hurricane-related preparation and clean-up efforts.
  • Gilead Sciences (NASDAQ:GILD) has agreed to acquire Myogen (NASDAQ:MYOG) for roughly $2.5 billion to gain ownership of MYOG's lead product candidate for the treatment of pulmonary arterial hypertension.
  • Wal-Mart Stores (NYSE:WMT) is reportedly considering an alliance with Apple Computer (AAPL) to enable WMT to profit from downloads of videos on iTunes.
  • The SEC reports that Wal-Mart Stores (NYSE:WMT) has a recent history of selling at or near its 50-day moving average, with prices rebounding after touching this level.

Statistics:

  • The ISE Homebuilders Index has risen 2.13% in recent trading.
  • Harrah's Entertainment (NYSE:HET) has surged 17.17% following the announcement of a buyout offer.
  • Wal-Mart Stores (NYSE:WMT) has reported a same-store sales increase of 1.8% in September.
  • Gilead Sciences (NASDAQ:GILD) has agreed to acquire Myogen (NASDAQ:MYOG) for roughly $2.5 billion.
  • Wal-Mart Stores (NYSE:WMT) has seen a recent trend of selling at or near its 50-day moving average, with prices rebounding after touching this level.

Sources:

  • http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1
  • http://www.schaeffersresearch.com/commentary/podcasts/
  • Variety.com
  • The Wall Street Journal
  • MarketWatch
  • Forbes
  • Barron's
  • Schaeffer's Investment Research (www.SchaeffersResearch.com)

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