Diamonds and Dogs
Lower interest rates and loosening of credit standards is good news for the homebuilders. Beazer Homes (BZH) is jumping 4% thanks to an upgrade at Wedbush. The analyst upgraded the stock to an Outperform from Neutral and set a price target of $15 a share based on loosening of credit standards at Fannie Mae which will benefit Beazer Homes' entry-level consumers.
Grocery stores under pressure. Kroger (KR) reported in-line earnings and beat on sales, but the stock is down 13% after lowering full year guidance. For the full year, Kroger now sees earnings of $2.00-2.05 a share verse estimates of $2.21-2.25 a share. Kroger is now down 31% in the last year and is dragging down other grocers like Sprouts Farms down 7% and Whole Foods down 4%.