The Fed spoke, and Wall Street voted with its feet today--as in running around in circles. The market swung wildly after the Fed announcement, with the Dow down 100, then up 100, before it settled up 35.52. But builder stocks held up well through the day, ending with all but three--Avatar, NVR and TOA--up.The S&P Homebuilder Index was up 5%.
WCI, which disclosed that it will likely miss its cash-flow target of $1 billion this year but that it does indeed have cash flow, was up 19.73% to $7.95. Comstock was up 30%, which brought it up to $1.60, pulling it further from becoming a penny stock. Beazer was up 9.76% to $12.03; Pulte was up 9.60% to $20.38; Hovnanian was up 7.17% to $12.25; Pulte was up 7.6% to $20.38; Meritage was up 6.18% to $18.04; and Lennar was up 6.58% to $34.49.
Other builder stocks, including Dominion, Centex, Toll Brothers, KB Home, Dominion, MDC and M/I were up between the low 1% range to the mid 4% range, and Standard Pacific, which had seen large losses on extremely heavy volume over the past two sessions, recovered by 3.23% to $10.86.
Avatar was off 1.7% to $60.81 and NVR was down 0.79% to $604. TOUSA, which suffered a debt-rating downgrade by Fitch earlier in the day, closed down 0.85% at $2.32.
The Fed decided to hold rates at 5.25% and said its chief concern is still inflation. But it also acknowledged in its statement that some risk to economic growth has become apparent.