** Interest rate-sensitive homebuilders stocks rise on Fri after Aug payrolls report misses expectations, sending yields lower
** Markets pricing in about 50/50 odds of 25 or 50 basis points rate cut at Fed's Sept meeting; lowering rates leads to decline in mortgage rates, potentially benefiting homebuilders
** PHLX Housing Index .HGX up 1% on the session: Toll Brothers TOL.N, Meritage Homes MTH.N 2.4%, Pultegroup PHM.N, Lennar LEN.N, and DR Horton DHI.N all up about 1.4%-2.4%
** In S&P 500 .SPX, building products maker Builders FirstSource BLDR.N up 1.4%, while home improvement retailers Home Depot HD.N and Lowe's LOW.N both edge up less than 1%
** Benchmark U.S. Treasury 10-year yield US10YT=RR on Fri fell as low as 3.657%, lowest since Jun 2023
** With moves on Fri, HGX up ~17% YTD vs ~14% rise in S&P 500 .SPX
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))