Shares of homebuilders rallied Wednesday after Toll Brothers reported strong quarterly results and an industry group said home sales rose in July.
The nation's leading luxury homebuilder reported a 46% jump in net income to $61.6 million in the quarter ended July 31. Toll Brothers also said new contracts rose 57%, and its contract backlog grew 44% during the quarter.
The homebuilding sector was also supported by a report from the National Association of Realtors, which showed sales of existing homes rose 2.3% in July
StockTwits users debated the merits of the rally.
That's a good point. As housing has slowly started to recover, Toll Brothers' stock has steadily climbed higher, gaining more than 60% from the start of the year.
JimCramer: $TOL says best demand in five years. But is it good enough in a market that is suddenly demanding a breather?
Housing has taken such a beating that this time, the turnaround may be for real.
And that may put a temporary crimp in the bigger picture of the housing recovery.
Not a member yet?Sign up now for a free account
|America's economic mobility myth|
|American Airlines, US Airways to form largest air carrier Monday|
|Tech firms call on U.S. to reform spying activities|
|Someone bought a $100,000 Tesla with Bitcoins|
|AMC gives rewards program members insider access to IPO|