NewsMine — economy — united-states — 2007-jan-may — Viewing Item

Anxiety over housing market pulls down stocks { March 28 2007 } Original Source Link: (May no longer be active)    http://www.washingtonpost.com/wp-dyn/content/article/2007/03/27/AR2007032701848.html http://www.washingtonpost.com/wp-dyn/content/article/2007/03/27/AR2007032701848.html Anxiety Over Housing Market Pulls Down Stocks By Associated press Wednesday, March 28, 2007; D05 NEW YORK, March 27 -- Stocks stumbled Tuesday as new data raised the possibility that the weak housing market would seep into the broader economy and crimp consumer spending. The Dow Jones industrial average fell 71.78, or 0.58 percent, to 12,397.29. Tuesday's sell-off put the blue chips back into negative territory for the year. The Standard & Poor's 500-stock index lost 8.89, or 0.62 percent, to 1428.61, and the Nasdaq composite index declined 18.20, or 0.74 percent, to 2437.43. A housing index released by Standard & Poor's on Tuesday showed that prices of single-family homes fell in January compared with a year ago, their worst showing since January 2004. Lennar, one of the country's largest homebuilders, said first-quarter profit fell 73 percent and warned that it probably won't meet its 2007 earnings guidance. Its stock fell. Other homebuilder stocks tumbled on the outlook and the S&P's home price data: D.R. Horton, Toll Brothers, Pulte Homes and KB Home each fell more than 1 percent, and Hovnanian Enterprises dropped more than 3 percent. Investors have been nervous that a drop in housing values could further weaken subprime mortgage lenders, who make loans to people with poor credit, and make consumers curtail spending. Consumer spending makes up about two-thirds of U.S. economic activity. The Conference Board said its March consumer confidence index fell to 107.2, the lowest level since November. The index was at 112.5 a month earlier, its highest level in 5 1/2 years. But analysts noted that lower confidence doesn't necessarily mean a drop in spending, especially with the labor market as stable as it is. Furthermore, the Dow rose every day last week, and the recent pullback erased only a small portion of that 370-point weekly gain, which was the largest since March 2003. Movers Lennar fell 4 cents, to $44.50. CSX dropped $1.01, to $39.08, after federal railroad officials recommended it be fined for failure to make repairs. Countrywide Financial sank $1.53, to $34.71. © 2007 The Washington Post Company

Almost 7m kids die a year from hunger Anxiety over housing market pulls down stocks { March 28 2007 } Credit counselors overwhelmed by mortgage crisis Dollar drops under half british pound { March 2007 } Dollar may fall on weak manufacturing { December 2007 } Dollar nears record low against euro { March 2007 } Dow fell over 500 points { January 2007 } Dow hits 12800 record high { March 2007 } Existing home sales fall 8 percent { March 2007 } Factory orders plunge { March 6 2007 } Gold selloff continues to cover equity losses { February 2007 } Greenspan warns of US recession { January 2007 } Hershey cuts jobs builds plant in mexico { January 2007 } Home prices to fall for first time since great depression { April 12 2007 } Investers sell gold to recover market losses { January 2007 } January 2007 new homes sales fall 17 percent Jobless numbers highest in weeks { December 2007 } Late mortgage payments up forclosures surge { March 14 2007 } Retail sales fell sharply last month { May 11 2007 } Soaring rates risks 2m american homes { March 14 2007 } Stocks plummet on subprime concerns Trade deficit with china reaches record 214b { January 10 2007 } US food prices spiked { March 2007 } US productivity growth behind EU for first time { December 2007 } Wallstreet plummets after chinese stocks drop { January 2007 } Files Listed: 25

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