BUZZ - US homebuilder stocks rise after Democrats win big in congressional elections

November 4 - ** After the Democratic Party gained control of both chambers of Congress in the midterm elections, U.S. homebuilder stocks rose in pre-market trading (link)

** Shares of D.R. Horton (DHI.N), Lennar (LEN.N), and PulteGroup (PHM.N), increased by 3% to 5%

** Peer companies KB Home (KBH.N) and NVR (NVR.N) saw their shares rise by about 2%

** UBS stated that Democratic control of Congress could increase the likelihood of lowered tariffs on building materials

** It is estimated that tariffs have added about $7,500 to the cost of a new home, so reducing tariffs could improve housing affordability

** Brokerage firms noted that further expansion of state and local tax deductions could boost disposable income and support housing demand, especially in high-tax states

** Additionally, the "More Homes on the Market Act" and "First-Time Homebuyer Affordability Act" could increase home turnover and improve the ability of first-time buyers to purchase homes, thereby benefiting homebuilders

** The Philadelphia Stock Exchange Housing Index (.HGX) has fallen by about 4% so far this year

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