Homebuilders Plunge From First To Worst As 'Efficient Stock Market' Wrong Again

But, but, but... homebuilder stocks were surging early on - just like they did at one point yesterday - proving that 'they' know something right? Right? Homebuilders are now the biggest losers - down 3% from the highs - as KB Home's conference call slashes guidance, pulls land deals, and expects margin compression...

 

  • *KBH SEES 1Q BOTTOM LINE ABOUT BREAK-EVEN (against expectations of a 17c rise!)
  • *KB HOME CFO SAYS FIRST-QUARTER MARGINS EXPECTED TO BE DOWN
  • *KB HOME PULLED OUT OF `COUPLE' HOUSTON LAND DEALS, CEO SAYS

Can you see where that news hit?

 

And how it affected the broad homebuilder sector...

 

Of course the credit markets were somewhat rational through this pump-and-dump...

 

As stocks catch down to USDJPY (breaking 118)...

 

Charts: Bloomberg