A major Wall Street player downgraded five home builder stocks on Friday, sending the sector tanking. CNBC reports:
Home builder stocks fell Friday after J.P. Morgan said it is "more cautious" about the sector's prospects.
The firm lowered its ratings for five home builder stocks Friday – including reducing PulteGroup and M.D.C. Holdings to underweight and moving Beazer Homes, Century Communities and Meritage Homes shares to neutral from overweight.
"We are becoming more cautious on the home building sector," analyst Michael Rehaut said in a note to clients Friday. "We expect the housing recovery to remain fairly tepid in 2019."
Shares of M.D.C., Beazer , Century Communities and Meritage all fell by more than 3 percent, while PulteGroup's stock dropped about 2 percent Friday after the report.