Indices Slide into Negative Terrain

Some negative news including predictions of a sustained decline in the housing market in 2006 slowed the markets in December. The anticipated so-called Santa Claus rally never materialized, but other factors such as soaring consumer confidence numbers for December left investors scratching their heads.

February 01, 2006

Some negative news including predictions of a sustained decline in the housing market in 2006 slowed the markets in December. The anticipated so-called Santa Claus rally never materialized, but other factors such as soaring consumer confidence numbers for December left investors scratching their heads. The Fed raised rates another quarterpoint in mid-December, the 13th such consecutive raise since June 2004. However, the Fed omitted prior language in their statement — that even with increases interest rates are still low — leading some on Wall Street to hope for the end of rate hikes. "It's really the Fed at this point that's kept the market in check," said Hans Olsen, managing director and chief investment officer at Bingham Legg Advisers.

The rumored slowdown in housing markets was highlighted in the Anderson Forecast released by the University of California, Los Angeles in early December. The report said that the slowdown is likely to last several years. "We expect housing to start slowing the economy this quarter or the next," said Edward Leamer, director of the study.

For the complete listing of Builders' and Building Product Manufacturers' indices as well as more information on the Wall Street Report, visit www.housingzone.com/economics

Building Product Manufacturers' Index
Exchange Symbol Ticker Name Company
NYSE ASD American Standard Companies, Inc.
NASD AMWD American Woodmark Corp.
NYSE BDK Black & Decker Corp.
NYSE DOW Dow Chemical Corp.
NYSE FO Fortune Brands, Inc.
NYSE GE General Electric Corp.
NYSE GP Georgia-Pacific Co.
NYSE MAS Masco Corp.
NYSE MYG Maytag Corp.
NYSE MHK Mohawk Industries, Inc.
NYSE SHW Sherwin-Williams Co.
NYSE SWK Stanley Works
NYSE USG USG Corp.
NYSE WHR Whirlpool Corp.


Price 10/31/2005 Price 9/30/2005 Net Change Percent Change
Product Manufacturers' Index 984.12 998.64 -14.52 -1.45%
Dow Jones Industrial Average 10717.50 10805.87 -88.37 -0.82%
S&P 500 Index 1248.49 1249.48 -0.99 -0.08%
NASDAQ Composite 2205.32 2232.82 -27.50 -1.23%


Gainers/Losers
$ Gainer USG Corp. 3.80
$ Loser Dow Chemical Corp. -1.43
% Gainer USG Corp. 6.21%
% Loser American Woodwork Corp. -3.24%
Advancers 8
Decliners 5
Source: Trade Trends, Inc. (509) 327-1279


Builders' Index
Exchange Symbol Ticker Name Company
NYSE AVB AvalonBay Communities, Inc.
NASD AVTR Avatar Holdings, Inc.
NYSE BZH Beazer Homes USA, Inc.
NYSE BHS Brookfield Homes Corp.
NYSE CPT Camden Property Trust
AMEX CAV Cavalier Homes, Inc.
NASD CVCO Cavco Industries, Inc.
NYSE CTX Centex Corp.
NYSE CHB Champion Enterprises, Inc.
NASD CHCI Comstock Homebuilding Companies, Inc.
NYSE DHI D.R. Horton, Inc.
NASD DHOM Dominion Homes, Inc.
NYSE FLE Fleetwood Enterprises, Inc.
NYSE HOV Hovnanian Enterprises, Inc.
NYSE KBH KB Home
NYSE LEN Lennar Corp.
NYSE LEV Levitt Corp. (Levitt & Sons, LLC)
NYSE MDC MDC Holdings, Inc.
NYSE MHO M/I Homes, Inc.
NYSE MTH Meritage Homes Corp.
NASD NOBH Nobility Homes
AMEX NVR NVR, Inc.
AMEX OHB Orleans Homebuilders, Inc.
NASD PHHM Palm Harbor Homes, Inc.
NYSE PHM Pulte Homes, Inc.
NYSE RYL Ryland Group, Inc.
NYSE SKY Skyline Corp.
NYSE JOE St. Joe Co., The
NYSE SPF Standard-Pacific Corp.
NASD TARR Tarragon Corp.
NYSE TOA Technical Olympic USA, Inc.
NYSE TOL Toll Brothers, Inc.
NYSE WLT Walter Industries (Jim Walter Homes, Inc.)
NYSE WCI WCI Communities, Inc.
NYSE WY Weyerhaeuser Co. (Weyerhaeuser Real Estate Co.)
NYSE WLS William Lyon Homes


Price 10/31/2005 Price 9/30/2005 Net Change Percent Change
Builders' Index 1270.85 1272.38 -1.53 -0.12%
Dow Jones Industrial Average 10717.50 10805.87 -88.37 -0.82%
S&P 500 Index 1248.49 1249.48 -0.99 -0.08%
NASDAQ Composite 2205.32 2232.82 -27.50 -1.23%


Gainers/Losers
$ Gainer NVR, Inc. 14.75
$ Loser William Lyon Homes -10.60
% Gainer Cavalier Homes, Inc. 10.26%
% Loser William Lyon Homes -9.51%
Advancers 18
Decliners 18
Source: Trade Trends, Inc.


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