Shares of D.R. Horton Inc (NYSE:DHI) are trading higher Friday morning, boosted by a weaker-than-expected August jobs report that intensified investor bets on imminent interest rate cuts from the Federal Reserve. The U.S. economy added just 22,000 jobs, far below forecasts, signaling a significant labor market slowdown.
What To Know: This economic news is proving beneficial for the nation’s largest homebuilder. The prospect of the Fed cutting rates to stimulate the economy has already sent Treasury yields lower.
For potential homebuyers, this signals the likelihood of lower mortgage rates, which would increase affordability and boost demand for new homes, a direct tailwind for D.R. Horton’s business.
Wall Street is now overwhelmingly pricing in a rate cut at the Fed’s September meeting. This anticipation of cheaper borrowing costs is driving investor optimism, positioning homebuilders like D.R. Horton as prime beneficiaries of the shifting monetary policy outlook and lifting its stock price.
Benzinga Edge Rankings: Reinforcing its market position, DHI also boasts a strong Benzinga Edge Value score of 79.23.
Price Action: According to data from Benzinga Pro, DHI shares are trading higher by 3.27% to $182.46 Friday morning. The stock has a 52-week high of $199.85 and a 52-week low of $110.44.
Read Also: Traders Hit The Buy Button On These 10 Stocks After Weak Jobs Report
How To Buy DHI Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in D.R. Horton’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Image: Shutterstock
