Courtesy of John Nyaradi.
iShares Dow Jones US Home Construction (AMEX:ITB) ETF and Real Estate iShares (AMEX:IYR) ETF surged today on increased new home sales as reported by The US Department Of Commerce earlier today.
The US Department of Commerce reported today that new home sales rose from 296,000 new home sales in August to 313,000 new home sales in September.
The iShares Dow Jones US Home Construction (AMEX:ITB) ETF responded dramatically with 2.37% increase over yesterday’s trading. The Real Estate iShares (AMEX:IYR) ETF also grew 0.93%, indicating positive economic movement in the housing sector of the US economy.
The increases in both (AMEX:ITB) and (AMEX:IYR) are likely a direct response to the positive new homes sales report, which showed significant gains from August. (AMEX:ITB) and (AMEX:IYR) are likely short-lived gains, however, as the housing sector of the economy is still rocky, as indicated by by Tuesday’s Case-Shiller report.
Bottom line: (AMEX:ITB) and (AMEX:IYR) are likely to stay volatile in the future until the housing sector further stabilizes.
ETF Summary:
(AMEX:ITB) +0.25, +2.37%
(AMEX:IYR) +0.51, +0.93%
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