Wednesday, March 16, 2011

PulteGroup (PHM), Lennar (LEN), Toll Brothers (TOL) Drop on Disappointing Data

It was just a couple of days ago after the news of the earthquake in Japan that the home construction industry was one of the few sectors in the positive. That has changed quickly as shares of PulteGroup (NYSE:PHM), Lennar (NYSE:LEN) and Toll Brothers (NYSE:TOL) are all falling on data showing the industry continues to struggle.

The idea a couple of days ago was the hope that spring sales would boost the sector, but that's not going to be the case, as housing starts were at a 27-year low and new building permits dropped to a record low.

It appears the gains a couple of days ago were just investors trying to find anything that would move up at the time.

Toll Brothers was trading at $20.41, down $0.45, or 2.16 percent, as of 2:04 PM EDT. Lennar was at $19.20, falling $0.48, or 2.44 percent. PulteGroup was at $6.90, dropping $0.11, or 1.57 percent.

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