Investors will turn their attention to two big earnings reports scheduled for Wednesday, homebuilder Lennar (LEN) and retailer Bed Bath & Beyond (BBBY).
Ahead of the opening bell, Lennar is expected to report adjusted earnings of $1.32 per share on $5.47 billion in revenue, according to analysts polled by Bloomberg.
New home sales rose again in August as a the drop in mortgage rates starts to benefit the U.S. housing market. Analysts are expecting that Lennar will exceed 4% growth in net new orders during the third quarter given the rebound in new home demand. Lennar’s results comes as the homebuilders have been outperforming the broader market in a lower interest rate environment. The ETF tracking the homebuilders, XHB, jumped nearly 37% in 2019, while the S&P 500 (^GSPC) is up 20% in the same time period.
Meanwhile, after the market close, retailer Bed Bath & Beyond will release fiscal second-quarter financial results. The embattled retailer has a lot to prove to investors given that the stock has tanked 82% over the past five years and 27% over the past year. Bed Bath & Beyond still has yet to appoint a permanent CEO, and investors will be expecting to hear additional details on the recent board shake up and layoffs.
Analysts polled by Bloomberg expect Bed Bath & Beyond to report adjusted earnings of 24 cents per share on $2.75 billion in revenue. The options market is implying a 19% move in either direction following the report.
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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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