Construction Materials Stocks Decline After August Housing Starts Drop

Shares of construction materials companies are lower after the U.S Census Bureau announced new residential construction statistics for August.

WHAT'S NEW: New U.S. home construction fell further than expected in August as a drop in the South due to bad weather, more than offset increases in other parts of the country. Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,139,000. This is 0.4% below the revised July rate of 1,144,000 and 2.3% below the August 2015 estimate of 1,166,000. Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,142,000. This is 5.8% below the revised July estimate of 1,212,000, but is 0.9% above the August 2015 rate of 1,132,000. Single-family housing starts in August were at a rate of 722,000, which is 6% below the revised July figure of 768,000.

STOCKS TO WATCH: Shares of construction materials companies, including Comfort Systems (FIX), Vulcan Materials (VMC), Beacon Roofing Supply (BECN), CEMEX (CX), and Martin Marietta Materials (MLM), are all lower in midday trading.