Housing stocks get killed

Shares of locally based homebuilders Ryland and KB are getting creamed today, probably in response to another homebuilder, Centex Corp., reporting a 28 percent drop in second-quarter orders. Just before the close of trading, Ryland was off 5 percent, to $44.60, and KB was off 5.5 percent, to $44.85. In case you're keeping score, KB's 52-week high is $82 (Jan. 11), while Ryland's is a little over $83 (Jan. 10). The news is expected to be glum when other homebuilders report their numbers later this month. In KB's case, those numbers can't even be reported because the company is still trying to sort out its backdating stock options mess involving CEO Bruce Karatz. It does expect third-quarter profit to fall - a lot.