Why NVR, Insperity, and Omeros Slumped Today
Wall Street kept celebrating on Monday, delivering fresh record highs for the major benchmarks in the process. As long as trade discussions between China and the U.S. appear to be going relatively smoothly and have a chance at eventual success, investors seem willing to look past those issues and focus on more general economic strength. Yet some companies had to deal with less-than-perfect news that sent their share prices lower. NVR (NYSE: NVR), Insperity (NYSE: NSP), and Omeros (NASDAQ: OMER) were among the worst performers. Here's why they did so poorly.
Shares of NVR fell 7%, leading just about the entire homebuilding industry lower. Investors in homebuilder stocks have faced a tug of war in recent days, as some analysts have argued that after a strong run higher for NVR and its peers, a pullback in the housing market is warranted because of future uncertainty. Yet others believe that reductions in short-term interest rates will help keep the longer-term rates that determine mortgage costs in check as well, and that could help extend the cyclical strength in homebuilders for a while longer. Long-term rates did move higher Monday, but it'd take a much larger uptick to have a marked impact on mortgage activity and thereby hurt NVR.
Image source: NVR.
Source Fool.com
