Building Stocks Lose Momentum

May's volatility left Wall Street in the red for the month ended May 31, 2006. The Fed raised rates a quarter point at its May 10 meeting, as expected, but the recent release of its notes indicating a June increase pummeled stocks, as did stellar oil prices, weak Wal-Mart sales and soft consumer strength.

An oil pullback at the end of our session helped calm inflation jitters, but news that the Federal Reserve will likely raise rates in June unless inflationary pressures ease erased the gains investors enjoyed in early May.

Our Builders' and Manufacturers' indices tumbled this month, along with the rest of the major markets. The Builders' Index shed 137.60 points, or 11.49 percent of its value, and closed at 1059.77. Of the 36 stocks tracked in the Builders' Index, declining issues outpaced advancing issues by a 6-to-1 margin. On the Product Manufacturers' side, the index lost 17.88 points, or 1.85 percent, and ended at 949.71. Declining issues surpassed advancing issues by a 5-to-1 margin.

For the complete listing of Builders' and Building Product Manufacturer's indices as well as more information on the Wall Street Report, visit www.HousingZone.com/economics.