Capital Goods Stocks, Including D.R. Horton, Inc, Making Big Moves on December 10, 2012

By Investopedia Staff | December 10, 2012 AAA

The market is currently up, with the Nasdaq up 0.6%, the S&P 500 rising 0.2% and the Dow climbing 0.3%. The capital goods sector is the category of stocks related to the manufacture or distribution of goods. The sector is diverse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering and construction projects. It is also referred to as the "industrials sector". Performance in the capital goods sector is sensitive to fluctuations in the business cycle. Because it relies heavily on manufacturing, the sector does well when the economy is booming or expanding. As economic conditions worsen, the demand for capital goods drops off, usually lowering the prices of stocks in the sector.

The Capital Goods sector (XLI) is up 0.4%, underperforming the market overall. The biggest movers in the sector are currently:

Company Market Cap Percentage Change
Homex Development Corp (NYSE:HXM) $680.9 million -4.5%
US Silica Holdings (NYSE:SLCA) $791.6 million -3.5%
Esterline (NYSE:ESL) $1.94 billion +2.1%
D.R. Horton, Inc (NYSE:DHI) $6.05 billion -1.9%
Meritage (NYSE:MTH) $1.25 billion -1.8%
Kennametal (NYSE:KMT) $3.1 billion +1.8%
National Presto Industries (NYSE:NPK) $533.7 million +1.7%

Broker Summary: E-Trade Financial

Homex Development Corp (NYSE:HXM) is down 4.5% to reach $11.65 per share. The company's volume is currently 218,030 shares for the day, 0.4 times the average daily volume.

US Silica Holdings (NYSE:SLCA) is trading at $14.47 per share, down 3.5%. The company is currently trading a volume of 195,861 shares.

Increasing 2.1%, Esterline (NYSE:ESL) is trading at $64.19 per share. With 62,128 shares changing hands so far today, the company's volume is 0.2 times its current three-month average.

D.R. Horton, Inc (NYSE:DHI) has decreased to $18.49 per share, a 1.9% fall. The company's volume for the day so far is 2.2 million shares. This is about the same trading activity as there was yesterday.

Meritage (NYSE:MTH) is currently trading at a share price of $34.55, a 1.8% decline. At 209,208 shares, the company's volume so far today is in keeping with its current daily average.

Kennametal (NYSE:KMT) has moved up 1.8% and is currently trading at $39.66 per share. The company's volume for the day so far is 231,173 shares.

Rising 1.7%, National Presto Industries (NYSE:NPK) is currently trading at $78.91 per share. The company's volume is currently 7,337 shares for the day, 0.2 times the average volume over the last three months.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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