Market check: KB Home shares soar, stocks edge higher at open

Yahoo Finance Live’s Julie Hyman and Brian Sozzi discuss the increase in KB Home stock after the company reported Q4 earnings.

Video Transcript

JULIE HYMAN: Some other trends that we are watching as we talk about rising prices and shortages for everything. Apparently, Brian Sozzi, there is a garage door shortage. This is something the "Wall Street Journal" highlighted earlier in the week. And you noticed that KB Home mentioned it in its call.

Now KB home-- we'll get to the garage doors in just a second. KB Home did come out with earnings per share that beat estimates by a pretty wide margin. Revenue rose by 40% year-over-year to $1.7 billion dollars. Deliveries were up double digits, 28%. One-- one thing that did fall, though, was net orders, which was interesting. And, you know, maybe some of these components have something to do with that, Sozz.

BRIAN SOZZI: Yeah, fascinating. KB Home, the CEO Jeff Mezger on the call last night noting a shortage in garage doors. Also, stucco. You need foam to use or make-- put stucco on people's home. That remains in short supply. So if you're-- want to put stucco-- stucco on your house this spring, you may not be able to do that. You may have to opt for signing. And we'll know too. KB Home noting for almost a 16% increase in the value of homes sold this year. Last year, prices rose 9%.

JULIE HYMAN: All right. We've got the opening bell coming in just over 30 seconds from now. And we are seeing an increase in stocks here. It did not seem there was much reaction to that PPI report this morning that we were talking a bit about. The focus in the coming days is going to switch from inflation, macro data, and the economy and switch more to individual companies. Of course, we have the big banks that are going to begin to report on Friday. And we'll be looking more for inflation data that is micro, that is mentioned by the various company.

[OPENING BELL RINGING]

[APPLAUSE]

And that's the opening bell on this Thursday morning. As you can see, M&T Bank is ringing the bell this morning as we get a lift in stocks, it looks like, heading out of the gate here. And as I was saying, the focus is going to switch to individual companies, as we talked about. We heard from Delta this morning. We heard from KB last night.

And if they can't garage doors, that implies, to me, at least, that prices are going to maybe continue to, if not go up, at least be elevated for things like homes. So as we try to look for those sources, maybe, of relief for inflation in the coming year, it'll be very interesting to look at these reports, Sazz.

BRIAN SOZZI: I don't even have a garage. I don't care. It's just a fun story to cover.

JULIE HYMAN: So I'm sure one of your loved ones has a garage. And I hope that they are able to get garage doors--

BRIAN SOZZI: I wish them well.

JULIE HYMAN: --if they have to replace them. Jared Blikre, I don't believe you have a garage door. But I'm sure your heart goes out to people. I mean, legitimately, though, it's not a great situation, not to be able to put a garage door on if you need one. What are you seeing overall in the markets, though, today, Jared?

JARED BLIKRE: I-- I'm enjoying the-- well, I-- I wish I could enjoy the heat in my place. But I have a heater problem. I can't get a repairman in here. So I-- I feel that. I really do.

JULIE HYMAN: Oh, no.

JARED BLIKRE: I'm looking at the-- yeah, well, I'll live. I've got some portable units. I'll be fine.

[LAUGHTER]

I'm looking at the YFi Interactive here. We got tech in the forefront. And it's really about the chip space. I just got some alerts for all-time highs here. Applied Materials looks like it is in the forefront here, even though Taiwan Semi has been a perennial leader in this space. You can see they are racing towards their record high from, I believe, February, March 1-- last year. Hard to see. But this is today's price action. So almost right there. Let's take a look at Applied Materials. And hard to see there. Let me punch this down to a three-month.

There we go. And we can see, there is that record high for Applied Materials. We've been getting a lot of record highs in the financial space. Really not seeing too many today. But let's check out what is going on, because we've got some big earnings coming up. Goldman Sachs. There was a report earlier from today about Goldman. And they're hiring. So we're going to be looking forward to those earnings. They might be next week. But JPMorgan, definitely this Friday, up marginally today.

So let's take a look at the NASDAQ 100, where we're seeing a little bit of love for the mega caps here. Nvidia up 1%. Tesla down a quarter of a percent. Not seeing too many big movers except to the downside. It looks like China's stocks are under-- some of these are under some pressure. Again, Alibaba down 2%. Pinduoduo down 3% as well.

And here come those record highs for the financials. It looks like Bank of New York Mellon is right there. Aflac. Insurance companies have really been flying high recently. Let's check out Travelers as well. So here we have Travelers. That's over the last three months. Not sure if they're hitting record highs recently. But KRE, that is a regional banking ETF, has.

And let's take a look at our leaders right now. Here we have solar, solar energy. I haven't seen that be a leader in a while. Following that, we have-- we have homebuilders. We also have stocks. That is a chip stocks. Retail, that's XRT. And then here's regional banks. Regional banks have really taken off since mid-December. They have been the leader as the Fed has pivoted to that hawkish position.

And let me just say something here, I think the Fed is pretty much at peak hawkishness right now. It's hard to imagine a scenario other than some, kind of, 8% inflation print, you know, 8% of inflation print for the next month. That really gets them in a more hawkish tone. So having put that out there, I'm going to send it back to you guys.

JULIE HYMAN: Yeah, and we-- we were just talking about Alessio-- talking to Alessio de Longis just a few minutes ago, his firm neutral on that dollar. Although, we did not dig into that. We dug into a lot of other stuff. Thanks, Jared. Appreciate it.

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