The 30-year fixed mortgage rate surpassed 7% on Thursday, leading to declines in housing stocks. Toll Brothers fell 1.9%, PulteGroup dropped 2%, and Hovnanian decreased by 2.6%, reflecting significant losses from their February highs, with Hovnanian down 30%.
In contrast, energy stocks are performing well, with Brent and West Texas Intermediate crude prices rising about 12% this week, making energy the only S&P sector in positive territory, up 1.7%. Devon Energy and Valero are notable gainers, each up around 4%.
Additionally, Oracle reported better-than-expected earnings, resulting in a 4% increase in shares during extended trading, although they remain down 56% from last year's peak. Investors are also anticipating inflation data, with the Dow Jones consensus predicting a 0.4% month-to-month increase and an annual rate of 3.4%.
Kroger is set to report earnings, with its shares down over 11% in the past three months and 25% from their March high. This combination of factors highlights the volatility in the market and the importance of upcoming economic indicators