Anybody counting on a rebound in new home sales, (which did not include any economists, all of whom forecasted a drop in new home sales albeit not as sharp) may be sorely disappointed. The homebuilder stocks, showing a complete disregard for reality, are rallying.
In completely unrelated news, SBUX disappointed investors with another lousy quarter coupled with a reduced forecast.
Apparently, stretched consumers are starting to wake up to the fact that you don't actually have to pay $2 for a cup of coffee. You can make it at home for pennies. The stock has been pounded in the past two years, almost completing its transformation from a growth stock to a value stock. Pretty soon, it may be cheaper than a caramel macciato.
Source: Mock The Market
