Stock Market Today: The Booming Market For $700,000 Homes

Market could be hitting a dangerous triple top





Toll Brothers this morning said that revenue in its fiscal fourth quarter rose by 65% as the homebuilder delivered 36% more houses than last year. Profitability also improved, with the average home price leaping to $703,000 from $651,000 a quarter back. Toll Brothers ended its fiscal year with a 57% rise in backlog and sees demand continuing to outstrip supply in the home market next year. As Executive Chairman Robert Toll put it, "The supply of luxury homes is still not meeting current demand, let alone the pent-up demand of the last seven years." Toll Brothers also took on significantly more debt this quarter so that it could fund acquisition of a California homebuilder. The stock is up 4% in premarket trading.











In other words, if you believe visite site in technical analysis, the market is at a very critical juncture. Take a look at the accompanying chart, which plots the Dow in constant 2013 dollars. Compared to the Dows current level of close to 16,000, the October 2007 bull market top was near 15,800 and the Dow at its early 2000 top stood at close to 16,200. To be sure, as David Aronson points out, a chart of the inflation-adjusted S&P 500 index tells a slightly different story. Aronson is president of Hood River Research, a firm that employs sophisticated modeling to enhance the profitability of quantitative investing strategies, and the recent author (with Dr. Timothy Masters) of Statistically Sound Machine Learning for Algorithmic Trading of Financial Instruments. Click to Play This holiday, act as if your spouse is the NSA How do you keep your gift a secret while online shopping during the holidays? Cover your tracks as if you are being watched, For example, while the inflation-adjusted S&P 500 currently is ahead of where it stood at the October 2007 market high, it is below where it stood in early 2000.





Stock market down slightly after hitting record





"It's quiet, and the only trading that will go on the rest of this year will be people selling for tax reasons and window dressing," said Jack Ablin, chief investment officer for BMO Private Bank, which manages $66 billion of assets. It's a common practice for portfolio managers, in the last couple weeks of the year, to wind down their positions, sell off poor-performing stocks and try to make their portfolios look as good as they possibly can when they mail their year-end statements to investors. On Wall Street, the practice is sometimes called "window dressing." Banking stocks were mostly higher after investors got some clarity on new banking regulations. Federal regulators voted to approve the so-called Volcker Rule, which bars banks from betting on the market with their own money. The Federal Deposit Insurance Corporation, the Securities and Exchange Commission and other federal agencies approved the rule, which will go into effect by July 2015 for the nation's largest banks. Goldman Sachs was up $2.48, or 1.5 percent, to $179.16 while Morgan Stanley was up 36 cents, or 1 percent, to $30.75. The Volcker rule is part of the Dodd-Frank financial reform law passed in 2010, following the aftermath of the financial crisis. In other corporate news, Lululemon Athletica's founder said that he would relinquish the company's chairmanship after his comments about body type of potential customers raised some ire.