D.R. Horton Jumps on Earnings, but Ford Is Stuck in Neutral

The blue chips moved up 91 points on strong earnings reports from D.R Horton, but Ford held steady in its report after the closing bell.

Jan 28, 2014 at 10:00PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

After three straight down days, the market bounced back today, as all three indexes gained measurably for the first time in several sessions as a strong consumer confidence report seemed to buoy investors. The Dow Jones Industrial Average (DJINDICES:^DJI) finished up 91 points, or 0.6%, as strong earnings reports from Pfizer and other helped big names helped boost the market. Today also marked the first day of the Federal Reserve's two-day Open Market Committee meeting. Tomorrow at 2 p.m., investors will learn if the central bank has decided to take another step in the taper of its bond-buying program, which is now at $75 billion a month. And as referenced, consumer confidence hit a five-month high as the Conference Board's measure jumped to 80.7, up from 77.5 in December, topping estimates of 78. The survey also marked the higher percentage of Americans saying jobs were currently plentiful since August 2008.

Among stocks catching today's wave was D.R. Horton (NYSE:DHI), gaining 10% on a strong earnings report. The nation's biggest homebuilder posted earnings of $0.36 per share, better than estimates of $0.29 while revenues improved a robust 32.7% to $1.64 billion, easily clearing the consensus at $1.47 billion. The housing recovery has been one of the key elements lifting the economy over the past year, and, as Horton's report makes clear, that recovery has carried on through the fourth quarter, a promising sign for the economy as well. The number of homes closed improved 19%, and management noted, "Housing market conditions continue to improve across most of our operating markets." Homebuilder stocks are notoriously volatile, but based on that assessment, the industry seems headed for another win this year.

After hours, Ford (NYSE:F) was essentially flat despite beating earnings estimates. The carmaker posted a per-share profit of $0.31, beating estimates of $0.28. Revenues, however, improved just 3% to $35.6 million, though that was enough to beat expectations at $35.3 million. Still, the company's guidance for 2014 as it said pre-tax profit would be about $7 to $8 billion on flat revenue. It also said it expects operating margin to be lower than last year, and automotive cash flow to be substantially lower. Given that view, it's surprising that shares didn't fall after hours.

What's the best carmaker to buy now?
U.S. automakers boomed after World War II, but the coming boom in the Chinese auto market will put that surge to shame! As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help from this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers