The homebuilding sector got a big boost from multiple pieces of major economic news in June. The bullish information rippled throughout the sector, and building supplies stocks were some of the biggest gainers as a result. Owens Corning (NYSE: OC) charged ahead 22.7%, while Trex (NYSE: TREX) moved 27.7% higher, according to S&P Global Market Intelligence.

Owens Corning manufactures fiberglass products, primarily for roofing and insulation. Trex produces wood-alternative composite products used primarily in decking and railing.

Demand for building products like these can be very sensitive to economic cycles. The number of people who build or improve a home can dissipate quickly if employment drops or interest rates climb too high, which winds up impacting housing stocks.

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Source Fool.com