Pre Market - September 25th 2007

I mentioned last night that we will need to monitor what Lennar Home Builders (LEN) reports this morning. Well they reported and it was a much worse than expected. The estimates for Lennar were for an EPS of negative $0.55. Lennar came in with a negative $3.25. A huge downward surprise. The company also painted a rather ugly picture of the housing sector in general.

Following the Lennar earnings release, UBS Securities issued a downgrade to 'sell' of all homebuilder stocks. I say to UBS: what planet have you been on the past 12 months?

We are seting up for a gap down when the market opens with futures all decidedly lower this morning.