Sector Snap: Homebuilders Fall With Market

NEW YORK (AP) — Shares of homebuilders slid Thursday as the broader market fell and a Fox-Pitt analyst predicted disappointing fourth-quarter sales for the sector.

In afternoon trading, shares of KB Home fell $1, or 6 percent, to $15.61. Lennar Corp. shares fell 80 cents, or 5.6 percent, to $13.45. Toll Brothers Inc. slipped 46 cents, or 2.4 percent, to $19.08. Hovnanian Enterprises Inc. lost 39 cents, or 10.2 percent, to $3.44.

MDC Holdings Inc. fell 96 cents, or 2.8 percent, to $33.78. NVR Inc. shares slipped $17.61, or 2.8 percent, to $619.76.

The drop-off came even after the National Association of Realtors said pending home sales in August rose 6.4 percent from July to 103.8, which handily beat analyst expectations.

But elsewhere, the Institute for Supply Management said its index of manufacturing activity in September slipped to 52.6 from 52.9 in August, well below analysts' expectations of 54. New claims for jobless benefits, meanwhile, rose more than expected to 551,000.

The reports sent Wall Street lower. Major stock indicators lost more than 1 percent in afternoon trading.