Homebuilders Surge on Fed Move

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Shares in local homebuilders gained Tuesday along with the broader market after the Federal Reserve moved to jump start seized credit markets and boost the flagging economy.


Shares in Los Angeles-based KB Home closed up 13 percent to $24.28 Tuesday while Calabasas-based homebuilder Ryland Group Corp. added 10 percent to $27.70.


The Fed said it will make up to $200 billion in Treasury securities available to financial institutions which is expected to make banks more willing to do business with one another after lending had slowed.


However, dampening the party, Red Bank, N.J.-based homebuilder Hovnanian Enterprises Inc. reported late Monday its sixth consecutive quarterly loss. Despite the drop, shares in Hovnanian climbed more than 16 percent.

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