Case-Shiller domestic prices for September were released today, continuing the upward trend in the 20-city survey for four straight months. A headline figure of +3.9% was right in line with analyst forecasts, above a slightly downwardly revised +2.1% for August. Obviously, these are numbers somewhat removed from where we are today, but Case-Shiller data is seen as the most solid housing data reported monthly.
This is the highest level since the +4.8% we saw in December of last year when the Fed funds rate rose from 3.75-4.00% to 4.25-4.50% on average of that month, and mortgage rates were about 200 basis points lower than. they are currently. However, the lack of homes on the market has led to price increases despite mortgage rates settling above 7%. Moreover, September marked the second month in the previous three, where the Fed did not increase interest rates; July 2023 saw the last migration.
Detroit became the new leader in home price appreciation in this survey, +6.7%, followed by San Diego, +6.5%, and New York, +6.3%. Gone are the days of +30% year over year home price growth as we saw when the Grand Opening took place. The laggards include some of the former home price leaders: Las Vegas, -1.9%, Phoenix, -1.2%, and Portland, OR, -0.7%. Time will tell if home prices will continue to rise as mortgage rates reach their current heights, but today’s chart suggests an upward trajectory.
Almost on cue, November Consumer Confidence numbers also came out early this morning, and improved above expectations and from the previous month: 102 beat the 101 consensus estimate, and higher than the below-revised 99.1 the previous month. This is the first increase since July 114, and thankfully not headed for the cycle lows we saw in July of last year, 95.3. For context, post-Covid highs were 128.9 at the end of June 2021, but consumer confidence levels were even higher right before the pandemic.
Zacks Rank #2 (Buy)-rated cybersecurity staple CrowdStrike CRWD easily beat estimates after today’s closing bell, posting earnings of 82 cents per share – above expectations of 74 cents and more than double the 40 cents per share reported in the prior year – on revenue of $786 million, beating the $777.2 million USD in. the Zacks consensus. Next quarter revenue guidance increased to a range of $836-840 million; analysts had previously expected $836 million. Shares are down modestly on this news, but still over +100% year to date.
Hewlett-Packard Enterprises HPE beat estimates for its fiscal Q4 earnings this afternoon, edging up 2 cents to 52 cents per share on revenue that directly matched the Zacks consensus estimate of $7.35 billion. Gross Margins reached +34.8%, below forecasts, while its AI business exceeded expectations, bringing in $1.2 billion for the quarter.
Cloud data storage important NetApp NTAP shares rose more than +10% in late trading on its Q3 earnings report after the close, with earnings of $1.58 per share exceeding the $1.40 expected on quarterly sales of $1.56 billion, beating the $1.53 billion forecast. Guidance for Q4 was also raised on both the top and bottom lines, and the company now has a string of 15 straight quarters of revenue beats.
And finally, we say goodbye Berkshire Hathaway (BRK.B) Vice President Charlie Munger, Warren Buffett’s self-described boss. Munger helped bring Buffett to a new way of thinking about investing, namely that “buying a great company for a fair price is better than buying a fair company at a great price.” The outspoken Munger passed away in a California hospital today, five weeks before his 100th birthday.
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