Diamonds and Dogs
Housing market still strong. Homebuilder, Lennar (LEN) is one of the few diamonds up 3% to a new 52 week high following better than expected third-quarter earnings. Lennar beat expectations by 27 cents as sales rose 3.3 to $5.86 billion. Deliveries of 13,522 homes rose 7%, new orders of 13,369 homes up 9% and the backlog of 18,908 homes remains strong. With low interest rates, its a good time to be a homebuilder.
Delta Air Lines (DAL) lower on rising cost concerns. Delta is down 6% after updating their third quarter. Delta modestly raised its costs for the quarter due to higher employee wages and the timing of airline maintenance. Delta was the best performing U.S. carrier year to date as the only US airline with no exposure to Boeing's 737 Max aircraft. With the sell off, Delta now trades for 7 times earnings and sports a 3% dividend yield after raising the quarterly payout by 15% back in July.
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