Stock Market News Today, Jan. 27: U.S. stocks are compounding last week's selloff, with all three major indices dropping into the red as home sales fell 7% in December.
- Market News: Dow Jones Industrial Average Falls for Fifth Straight Session
- Stock Market Today: Housing Data Makes KB Home (NYSE: KBH), Homebuilder
Stocks a "Hold"
This week's housing market data ended with lower new home sales than expected, triggering a slip for KB Home (NYSE: KBH) and other homebuilder stocks in the stock market today (Friday).
Shares of builder KB Home tumbled more than 13% in early morning trading. Also pushing investors away from the stock was the company earnings report that missed analyst expectations.
For the quarter ended Feb. 29, KB Home's net loss was $45.8 million, or 59 cents a share, down from a $114.5 million loss, or $1.49 a share, a year earlier. Analysts expected a loss of 23 cents a share, according to Bloomberg News.
Signs of a housing market bottom have helped push KBH up 67% this year. As of Thursday's close it was one of the top performers in the S&P 500 Index year-to-date.
But new home orders slipped last quarter - and the company is saddled with debt. Net orders declined 8.1% to 1,197 homes. The cancellation rate rose to 36% from 29% a year earlier.
Its high debt level has prevented KBH from regaining profitability.