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Tickers in this Article: MTH, MDC, RYL, FBHS, TOL, LEN, TXI
The Nasdaq is unchanged, the S&P 500 has moved up 0.2% and the Dow has increased 0.2% after the morning's trading. 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% overall, and these are the biggest movers in the sector so far:
CompanyMarket CapPercentage Change
Meritage (NYSE:MTH)$1.28 billion+4.3%
M.D.C. Holdings (NYSE:MDC)$1.67 billion+4%
Ryland Group (NYSE:RYL)$1.47 billion+3.9%
Fortune Brands Home & Security (NYSE:FBHS)$4.68 billion+3.7%
Toll Brothers, Inc (NYSE:TOL)$5.11 billion+3.7%
Lennar (NYSE:LEN)$6.95 billion+3.3%
Texas Industries (NYSE:TXI)$1.32 billion+3.1%
Broker Summary: TD Ameritrade Thinkorswim

Rising 4.3%, Meritage (NYSE:MTH) is currently trading at $37.55 per share. At 284,396 shares, the company's volume so far today is consistent with its current three-month average.

M.D.C. Holdings (NYSE:MDC) is at $35.69 per share after an increase of 4%. So far today, 117,099 shares have changed hands.

Ryland Group (NYSE:RYL) has risen 3.9% to hit a current price of $33.87 per share. The company's volume is currently 317,259 shares for the day, 0.3 times the current daily average.

Increasing 3.7%, Fortune Brands Home & Security (NYSE:FBHS) is trading at $29.83 per share. So far today, the company's volume is 579,107 shares.

Toll Brothers, Inc (NYSE:TOL) has increased to a share price of $31.47, a 3.7% rise. So far today, the company's volume is 2.3 million shares, in keeping with its current three-month average.

After an increase of 3.3%, Lennar (NYSE:LEN) has reached a current price of $37.62. The company is currently trading a volume of 1.9 million shares.

After rising 3.1%, Texas Industries (NYSE:TXI) is currently trading at a share price of $48.51. So far today, the company's volume is 115,967 shares, in keeping with its current daily average.

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.

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