CNBC's "Fast Money" Checking In On The Housing Market… And The Future of Pharma & Health Care 2/18/25
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Feb 18, 2025 Builder sentiment in the housing market has hit a five-month low, leading to concerns about tariffs and slowed luxury home sales. Meanwhile, the pharmaceutical sector is grappling with funding cuts and industry shifts, highlighted by insights from Mark Cuban. The sentiment among investors is paradoxical, with stock markets reaching record highs despite low confidence. Chinese tech stocks are also making waves, particularly Alibaba, following hints of potential government backing.
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Housing Market Headwinds
- Tariffs are a headwind for homebuilders, but rising interest rates pose a greater threat.
- Toll Brothers' average selling price dropped 8% year-over-year, suggesting higher rates' impact.
Homebuilders Bearish Signal
- Homebuilders peaked 4-6 months prior and are now underperforming the S&P 500.
- After substantial outperformance, this reversal signals a bearish sell for these stocks.
Focus on High-End Builders
- Focus on higher-end homebuilders like Toll Brothers.
- They're better positioned demographically and have more inventory visibility.