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    August 1, 2007

    Rumors unsettle US home builders

    Filed under: Administaff, Ford Motor, Hovnavian, Whole Foods, Kraft Foods, Beazer Homes, WCI Communities Inc

    Trading was volatile on Wall Street during the session on Wednesday.

    At just past midday, the Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500 were all slightly higher, but by just before 2 p.m. New York time the Nasdaq Composite was down 0.32 percent to 2,538.06 and the S&P 500 had dropped 0.18 percent to 1,452.71.

    The Dow remained slightly higher, up 0.14 percent to 13,229.95.

    At one point, home builder Beazer Homes (NYSE: BZH) had dropped over 40 percent to $8.24 on reports that it had or would shortly file for bankruptcy.

    Even though Beazer denied the rumors, it remained 16.37 percent lower to $11.65 in early afternoon trade.

    The reports hurt other homebuilders as well and at one point WCI Communities (NYSE: WCI) had dropped 14 percent to $7.59 and Hovnanian Enterprises (NYSE: HOV) was 16 percent lower to $11.12.

    In the automobile manufacturing sector, Ford Motor (NYSE: F) was 1.3 percent lower to $8.39 after it said that sales in the US dropped in July.

    Even though it reported higher profits in the most recent quarter, Kraft Foods (NYSE: KFT) fell 0.9 percent to $32.45.

    On the other hand, quarterly results that were better than expected when they were announced after trade closed on Tuesday sent Whole Foods (NAS: WFMI) 7.4 percent higher to $39.77.





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