Home Builders' Stocks In Broad Decline Again, As Investors Shrug Off Upbeat New Home Sales Data

Shares of home builders extended their recent selloff, as investors shrugged off data showing that new home sales surged much more than expected to the highest level in over seven years. The SPDR S&P Homebuilders ETF slumped 1.4%, with 34 of its 35 equity components trading lower. The ETF has lost 3.8% so far this week, and 9.6% since it closed at an 8 1/2-year high on Aug. 19. The iShares U.S. Home Construction ETF was down 1% Thursday, and has dropped 4.3% this week, while the S&P 500 has slipped 2%. KB Home's stock fell 1.6%, as better-than-expected fiscal third-quarter profit and sales were offset by disappointing deliveries and net orders data. Among other more-active home builders, shares of D.R. Horton Inc. eased 0.4%, Pulte Group Inc. gave up 0.2%, Lennar Corp. fell 0.6% and Toll Brothers Inc. lost 0.9%.

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