Profit Growth in U.S. May Hit Five-Year Low on Hou...

2007-09-28T04:29:00.000-07:00

Profit Growth in U.S. May Hit Five-Year Low on Housing Slump

Profit in the U.S. may grow at the slowest rate in more than five years this quarter as the housing slump hurts results at companies from IndyMac Bancorp Inc. to Target Corp.

Earnings of Standard & Poor's 500 Index members may rise an average of 3.2 percent from a year earlier, breaking a 20- quarter streak of gains exceeding 10 percent, according to data compiled by Bloomberg.

So-called short sellers increased their bets against homebuilders, home improvement retailers and mortgage real estate investment trusts in each of the past four months. The number of borrowed shares traded with the expectation of paying for them at a lower price in the future grew by 21 percent, 34 percent and 17 percent, respectively.

Short interest for the broader group of consumer discretionary companies listed on the New York Stock Exchange increased 2.7 percent in the last month.

Comments on immobilienblasen: Rant Of The Week.... Mike Morgan

Profit Growth in U.S. May Hit Five-Year Low on Hou...