A check of the homebuilders following Hovnanian's big earnings miss and slowdown in closings (HOV now down 6.6%): NVR (NVR -1.5%), D.R. Horton (DHI -1.1%), KB Home (KBH -1.8%), Pulte (PHM -0.8%), Ryland (RYL -1.5%), Toll Bros. (TOL -0.3%), Lennar (LEN -1%).
So what's the SPDR Homebuilders ETF (XHB +0.1%) doing in the green? The ETF has a heavy weighting to those tangential to the homebuilding industry - retail home improvement, building suppliers. More of a pure-play homebuilder fund is the iShares U.S. Home Construction ETF (ITB -0.8%).