SmartMoney’s Rob Wherry takes a look at the impact of today’s announcement by federal officials of plans to kickstart consumer markets including auto, education and housing.
In the article, New Bailout Plan Can’t Lift ETFs, Wherry notes that home builder ETFs performed better than the overall market which was up less than 1%.
The iShares Dow Jones U.S. Home Construction Index Fund (ITB) was up 11% and SPDR S&P Homebuilders (XHB) was up 8% on the news.
We have seen this movie before. Homebuilders rallied in September before falling dramatically in October and November. See the article Homebuilders Climb Out of the Basement for more.