Stock Market Today, Oct. 13: Rate Pressures and Analyst Downgrades Weigh on Rocket Companies
Rocket Companies (NYSE:RKT), a fintech mortgage firm, closed at $10.83, down 0.37%. The stock fell to a new 52-week low amid concerns about mortgage demand and high borrowing costs. Analysts at JPMorgan and Morgan Stanley also lowered their price targets on the stock, adding to the pressure.
Trading volume reached 41.1 million shares, coming in nearly 32% above its three-month average of 31.2 million shares. Rocket Companies IPO’d in 2020 and has fallen 40% since going public.
S&P 500 closed at 7,805, down 0.02%, while the Nasdaq Composite finished at 27,204, down 0.15%. Among residential mortgage lending peers, UWM Holdings (NYSE:UWMC) closed at $1.03, up 0.98%, and loanDepot (NYSE:LDI) closed at $0.56, down 4.78%.
Rocket Companies has had a rough year — the stock is down 44% year-to-date as challenges in the housing market, particularly mortgage rate pressure, hit its bottom line. Last week, the average 30-year fixed mortgage rate reached 7.40%, its highest in almost three years.
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