Pulte Provokes Home Builder Rally

Home builder stocks are a big winner on Thursday after upbeat results from PulteGroup (NYSE:PHM), which is leading the S&P 500 higher.

PHM beat earnings and revenue targets last quarter. Also, the company’s 3Q average closing price of $310,000 topped estimates of $299,100. Small-cap M/I Homes (NYSE:MHO) reported better-than-expected results as well, also topping EPS and revenue targets.

Adding to the positive news was word from Freddie Mac that the average rate on the 30-year fixed mortgage fell to a 4-month low. Thanks to the home builders, the consumer discretionary sector is the top-performing group on Thursday, up 0.8%.

The 16 stocks below are up an average of 4% as of 12:30pm ET, compared with just 0.3% for the S&P 500:

Homebuilders Surge

Homebuilder stocks drive the consumer discretionary sector: