Are you waiting for the malaise in the housing market to finally lift? Of course you are, who isn't? I can't wait for the day when headline news suddenly turns unambiguously positive. And I can't wait for the day when the market as a whole decides to anticipate it. For now, though, we've still got sour data to contend with. According to this article, famous luxury home-builder Toll Brothers (NYSE: TOL), whose competitors include Centex (NYSE: CTX) and Lennar (NYSE: LEN), reported preliminary results for the third quarter on Wednesday that showed a big decrease in home-building revenues. They decreased 34%, coming in at roughly $796 million. Seems par for the course, all things considered.

But there are more declines. Backlog orders decreased over 50%, and net signed contracts took a dive of 35% (both of these metrics are in dollar terms). The company is also issuing write-downs that will fall somewhere between $100 million and $200 million. Depressing stats, but according to the company press release, CEO Robert I. Toll believes that there is pent-up demand lurking out there in the marketplace for homes and he used the fact that total cancellations were down during the quarter as a tool for positive spin. Plus, the home-building revenue number did, in fact, beat estimates, according to Reuters. Does this make me want to run out and buy the stock?

No. Even though the stock has been strong in the last month, and even though it was up nearly 1% at the end of the trading session on Wednesday (a pretty nice showing on an otherwise overall downer of a day), I don't think I'm ready to initiate a position in Toll Brothers. I'd have to see a significant pullback in this one before my interest becomes piqued (some better economic news wouldn't hurt, either).

Disclosure: I don't own any company mentioned; positions can change at any time.

On Thursday, home builder Lennar Corp. (NYSE: LEN) said that its fiscal second-quarter loss narrowed, as Wall Street had expected. KB Home (NYSE: KBH), on the other hand, reported Friday a larger-than-expected second-quarter loss due to weak sales and falling home prices, as well as write downs.

For the quarter ended May 31, Los Angeles-based KB Home reported a loss of $255.9 million, or $3.30 per share, compared to a loss of $148.7 million, or $1.93 per share, in the same period of the previous year. This includes a charge of $176.5 million against unsold homes and to abandon some land option contracts.

Revenue tumbled 55% to $639.1 million, driven by lower housing and land sales. Analysts polled by Thomson Financial had expected a loss of 94 cents per share on revenue of $691.3 million.

As of May 31, KB Home's backlog of homes yet to be delivered was 6,233 units, down 54% percent from the same quarter last year. Unit deliveries, meanwhile, fell 41% to 2,810 as the company attempted to scale back its inventory of homes on the market.

KB Home said its cancellation rate was 27%, down from 34% in the year-ago period and 53% in the first quarter, but new orders during the quarter fell 42% from a year ago to 4,200.

On Thursday, Omaha-based ConAgra Foods Inc. (NYSE: CAG) reported profit growth in the fourth quarter due in part to contributions from its commodity trading unit, which the company just sold. Also, homebuilder Lennar Corp. (NYSE: LEN) said its fiscal second-quarter loss narrowed, despite writedowns and a hefty drop in revenues.

ConAgra said earnings grew almost 5% from the year-ago period to $201 million, or 41 cents per share, including 23 cents per share from discontinued operations. The company also said revenue rose 15% to $3.08 billion.

Analysts surveyed by Thomson Financial had expected earnings for the quarter ended May 25 to be 34 cents per share on revenue of $3.4 billion.

ConAgra guided earnings to between 26 cents and 28 cents per share in the first quarter, and $1.56 and $1.59 per share for fiscal 2009. Analysts are predicting earnings per share of 33 cents per share in the first quarter, as well as $1.60 for the year.

ConAgra shares fell $1.23, or 5.6%, to $20.92 in trading Thursday. Shares have fallen 4.0% in the past three months.

Anyone looking for good news in the housing sector will no doubt be keeping an eye on homebuilders Lennar Corp. (NYSE: LEN) and KB Home (NYSE: KBH) when they report second-quarter earnings this week. Both companies are expected by analysts surveyed by Thomson Financial to narrow their losses.

Lennar is expected to report net loss of 45 cents per share, as compared to a loss of 56 cents per share in the previous quarter and a loss of $1.55 per share in the year ago period. While the company hasn't posted a quarterly profit since the first quarter of 2007, the loss per share in the most recent quarter was 51 cents smaller than analysts had expected.

Miami-based Lennar is one of the largest homebuilders in the U.S., and it also provides financial services for home buyers. Even with the housing slump, the company had revenues in the past year of $10.2 billion, but its net loss totaled $1.9 billion. The company's long-term EPS growth forecast is 11.5%, which is less than the sector average and the S&P 500. The consensus recommendation of analysts remains to hold Lennar.

Shares closed Tuesday at $14.72, up from the 52-week low of $11.98 in January. The share price is down 62.9% from a year ago.

TheStreet.com's Jim Cramer says the mortgage problem is in the process of cresting, which is why the stocks have largely bottomed.

We are in the heart of default country, and we knew we would be. This is the toughest moment. You need to go back and look at the calendar to realize the astonishing acceleration in defaults. It's simple: This moment two years ago is when the underwriting standards were the lowest, and this is the moment when the defaults will be the highest because the loans are resetting at high levels and most of the lenders, lenders like Countrywide (NYSE: CFC) (Cramer's Take), are more interested in getting as much out of a borrower as possible before kicking him out than working out the loan.

Think about it.

In the second quarter of 2006, the housing industry was going strong. We were in the 7-million-homes-changing-hands mode, and the vast majority of those homes required little money down, with home equity loans being taken out immediately to pay whatever little interest was being charged. These were the moments of the ultimate no-doc-high-fee loans by New Century Financial, Ameriquest, Resmed (Ditech), American Home Mortgage, Novastar, and of course, Countrywide. This was when the homebuilders' mortgage arms lent the most terribly.

Despite the fact that the challenging housing conditions are still persisting, it looks like that some major housing companies are poised to see the light at the end of tunnel. SmartMoney underlines the fact that there has been some encouraging trend for homebuilders during the past few months.

Major names such as Toll Brothers Inc. (NYSE: TOL), Lennar Corp. (NYSE: LEN), Pulte Homes Inc. (NYSE: PHM), Hovnanian Enterprises Inc. (NYSE: HOV) and D.R. Horton Inc. (NYSE: DHI) showed a nice recovery attempt lately, but the National Association of Home Builders still warns investors to remain cautions regarding companies in the housing sector.

The National Association points out that, "the housing market has shown no evidence of improvement thus far," and the sentiment index is close to a historical low.

Looking at investing in housing stocks, one analyst at T. Rowe Price, Josh Spencer, makes a two-way analysis. From his point of view, housing stocks have a lot of risk if we are talking about their volatility, but they are not as risky when referring to a long-term time horizon due to their current cheap value.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AAR Corp. (NYSE: AIR) posted record third-quarter earnings and revenue.
• Adobe Systems Inc. (NASDAQ: ADBE) posted better-than-estimated first-quarter results and raised its outlook.
• CKE Restaurants Inc. (NYSE: CKR) posted third-quarter results that missed estimates.
• ConAgra Foods Inc. (NYSE: CAG) third-quarter profit surged as strong sales offset commodity prices.
• Darden Restaurants Inc. (NYSE: DRI) beat third-quarter expectations and offered guidance.
• FactSet Research Systems Inc. (NYSE: FDS) second-quarter results beat estimates and it raised its outlook.
• Fortress Investment Group (NYSE: FIG) remained upbeat despite a fourth-quarter loss.
• Guess Inc. (NYSE: GES) record fourth-quarter results beat Wall Street expectations.
• Inter Parfums Inc. (NASDAQ: IPAR) posted better-than-estimated fourth-quarter results and raised its outlook.
• Jabil Circuit Inc. (NYSE: JBL) beat second-quarter expectations but lowered its guidance.
• JC Penney Co. Inc. (NYSE: JCP) lowered its first-quarter outlook on weaker-than-expected sales.
• KB Home (NYSE: KBH) swung to a larger-than-expected first-quarter loss on write-downs.
• Lennar Corp. (NYSE: LEN) posted a smaller-than-expected first-quarter loss.
• Monsanto Co. (NYSE: MON) raised its second-quarter and full-year guidance.
• Oracle Corp. (NASDAQ: ORCL) merely met earnings expectations, sending shares lower.
• Tiffany & Co. (NYSE: TIF) posted better-than-estimated fourth-quarter results and raised its outlook.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted lower-than-expected first-quarter results.
• Walgreen Co. (NYSE: WAG) posted solid second-quarter results, including same-store sales growth.

Also, auction-rate securities issues may hurt some tech company results. Analysts keep cutting earings estimates for the big banks, but some are eyeing Yum! Brands (NYSE: YUM) earnings prospects as it expands in China, as well as Archer Daniels Midland (NYSE: ADM) on soaring demand for commodities.

Upcoming results to watch for include Best Buy (NYSE: BBY), Monsanto (NYSE: MON), and Research in Motion (NASDAQ: RIMM).

Visit AOL Money & Finance for more earnings coverage.

Shares of home builder KB Home (NYSE: KBH) have been tumbling in early trading after the company announced this morning it swung to a first quarter loss. The company's quarterly numbers were dragged down by higher write-downs related to lower home prices. Unlike its competitor Lennar Corp. (NYSE: LEN), KB Home was not able to beat analysts' expectations, sending its shares down over 5% this morning.

Including a charge of $223.9 million in write-downs, the residential home builder posted a quarterly loss of $268.2 million, or $3.47 per share, hurt by lower new home deliveries and orders. The company's quarterly numbers were also hurt by higher impairment charges. Analysts expected KB Home to show a quarterly loss of "only" $1.17 per share.

The global crisis in the credit market put pressure on the home builder's revenue, which plunged 43% to $794.2 million. For this period, the slumping housing market and credit crisis came with a plunge of 75% for new home orders and with a drop of 57% for new home deliveries. Analysts, on average, predicted sales of $805.7 million in the quarter, according to Thomson Financial.

With the financial crisis spreading quickly, housing stocks have been facing tough times over the past few months. But on the heels of these worries, shares of one of the nation's largest homebuilders, Lennar Corp. (NYSE: LEN), have been climbing today despite posting a first quarter loss, as its earnings results were not as bad as analysts had forecast.

The company announced it swung to a quarterly loss of $88.2 million, or 56 cents per share, compared with a profit of $68.6 million, or 43 cents per share a year earlier, hurt by lower new home deliveries and orders. Included in the company's earnings figures was a charge of 38 cents per share related to valuation adjustments and write-offs. Excluding that, Lennar's loss would have come at 18 cents per share, exceeding analysts' forecasts for a quarterly loss of $1.07 per share.

The company's quarterly revenue saw a huge fall of 62% to $1.06 billion, down from $2.79 billion a year ago, on pressure from the average selling price which lost 8%. For this period, the slumping housing market came with a drop of 60% for new home deliveries, and with a decline of 57% for new home orders.

As the financial crisis spreads quickly from Wall Street to other industries, two large home builder projects have received default notices. The problems involve developments in Las Vegas, where house prices have collapsed.

A project involving KB Homes (NYSE: KBH), Lennar (NYSE: LEN), and Toll Brothers (NYSE: TOL) has failed to make interest payments on $765 million in debt.

According to The Wall Street Journal (subscription required), the project is spear-headed by a private company, Focus Property Group.

It is not clear how many other large real estate developments involving public home builders are facing near-term margin calls, but with the falling price of real estate, the problem in Las Vegas is unlikely to be that last one. That means that already weakened firms could face a credit crisis of their own as home prices continue to drop and the potential value of homes under construction face going on the market for a fraction of what they may have brought just a year ago.

Some of the large home building company stocks have lost over two-thirds of their value over the past year, and that may only be the beginning.

Douglas A. McIntyre is an editor at 247wallst.com.

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• AT&T Inc. (NYSE: T) only met earnings expectations despite strong holiday iPhone sales.
• Bank of America (NYSE: BAC) earnings plunged 95% due to mortgage-related write-downs.
• Delta Air Lines Inc. (NYSE: DAL) narrowed its fourth quarter loss and beat expectations.
• eBay Inc. (NADSAQ: EBAY) beat low expectations, but the CEO is to step down in March.
• EI DuPont de Nemours & Co. (NYSE: DD) beat earnings expectations even thought profits fell 37%.
• E*Trade Financial Corp. (NASDAQ: ETFC), posted a bigger-than-estimated fourth quarter loss.
• Fifth Third Bancorp. (NASDAQ: FITB) missed estimates on acquistion costs and a one-time charge.
• Ford Motor Co. (NYSE: F) missed low expectations, prompting further domestic cost reductions.
• Harley-Davidson Inc. (NYSE: HOG) profit declined on weak domestic sales.
• Hershey Co. (NYSE: HSY) profit sank due to rising costs, competition, and management shakeups.
• Honeywell Internationl Inc. (NYSE: HON) only met estimates, despite growth in all business segments.
• Kimberly-Clark Corp. (NYSE: KMB) profit slipped bet met expectations, due to increased paper costs.
• Lennar Corp. (NYSE: LEN) reported a record quarterly loss due to the housing slump.
• Motorola Inc. (NYSE: MOT) profit plunged due to loss of market share, and it forcasts a first quarter loss.
• National City Corp. (NYSE: NCC) posted a bigger-than-expected loss, but shares rose anyway.
• Pfizer Inc. (NYSE: PFE) profit plunged, but beat estimates, due to increased competition for generics.
• UAL Corp. (NASDAQ: UAUA) narrowed its loss despite rising fuel prices and holiday cancellations.
• Wachovia Corp. (NYSE: WB) earnings plunged 98% due to home loan write-downs.
• WellPoint Inc. (NYSE: WLP) met earnings expectations and reaffirmed its 2008 outlook.

Among Thursday's quarterly reports were those of Lennar Corp. (NYSE: LEN), Kimberly-Clark Corp. (NYSE: KMB), and E*Trade Financial Corp. (NASDAQ: ETFC), all of which had disappointing news for investors.

One of the nation's largest homebuilders, Lennar, reported a $1.25 billion loss in the fourth quarter -- its largest ever -- as the housing slump drove prices lower and the builder took hefty charges. Lennar also reported a $1.9 billion loss for all of 2007. The Miami-based company said it was aggressively trying generate cash and lower inventory.

Quarterly losses rose to $7.92 per share, from $195.6 million, or $1.24 per share, a year ago. Revenue fell 49% percent to $2.18 billion from $4.27 billion in the same period of 2006, as both home deliveries and new orders fell 50%. The results topped the consensus forcast of analysts surveyed by Thomson Financial, who had expected a loss of $1.65 per share on revenue of $2.06 billion (these estimates typically exclude one-time charges such as land write-downs).

For the year ending November 30, Lennar's losses come to $12.31 per share, compared with profits of $593.9 million, or $3.69 per share, in 2006. Shares closed up 8.5%, to $16.21.

Big home-builder Lennar (NYSE: LEN) has dumped 11,000 properties to a company owned by Morgan Stanley (NYSE: MS). The price was a modest $525 million. Perhaps Lennar needs the cash. The Wall Street Journal writes that the deal "signals that investors have begun to pounce on bargain deals."

An arm of a big investment bank, especially one that has an independent balance sheet, can watch the properties fall further in value, as long as it believes that they will eventually rebound. If MS picked this property up for 60 cents on the dollar, it may get close to the entire original face value, if it waits out the real estate market for a few years.

The paper adds that "Lennar, which will have a 20% ownership stake in the venture, will have the option to buy back certain home sites." That sort of looks like "asset shifting," which is entirely legal, but a practice that may disguise the problems that were facing the home-builder.

If Lennar and its peers sell land before the end of the year, they can use the tax loss to shelter past profits.

Tax advantages aside, it is not a good sign that these companies have to dump assets that will probably regain most of their value. It raises the question of whether their best properties may be gone as the real estate market comes out of its slump, perhaps as early as 2009. At that point, home-builders may have crippled themselves for years to come by having disposed of the very assets that might help them recover more quickly.

Douglas A. McIntyre is an editor at 247wallst.com.

TheStreet.com's Jim Cramer says most people -- including the Fed governors -- haven't spotted this market Achilles heel.

Round up the usual suspects: Radian (NYSE: RDN) (Cramer's Take) - MBIA (NYSE: MBI) (Cramer's Take) - MGIC (NYSE: MTG) (Cramer's Take) - Ambac (NYSE: ABK) (Cramer's Take) - PMI (NYSE: PMI) (Cramer's Take).

Throw in walking dead ACA Capital (NYSE: ACA) (Cramer's Take) and Security Capital (NYSE: SCA) (Cramer's Take), and I think you produce what is really wrong with this market.

Anybody who takes even a casual look at the October delinquencies knows that these companies are going to be severely capital-challenged. Meanwhile, value guys like Third Avenue Management (Radian) and fellow travelers (Old Republic and PMI) make Pyrrhic stands and engender short squeezes that are mistakenly not used to recapitalize. And outfits from E*Trade (NASDAQ: ETFC) (Cramer's Take) to Fannie Mae (NYSE: FNM) (Cramer's Take) are left holding the bag on this stuff.

TheStreet.com's Jim Cramer explains what could force the Fed to cut rates again.

The housing index just can't rally for a minute. The thing's amazing. The stress of the system is so clearly manifested by this that I have to wonder if the Fed wants this index lower.

The fact that the Fed's speakers never mention things like this index and the homebuilders makes me wonder if this group is actually what the Fed wants to put out of business. I wonder if the Fed thinks that Pulte (NYSE: PHM) (Cramer's Take) and Horton (NYSE: DHI) (Cramer's Take) and Lennar (NYSE: LEN) (Cramer's Take) and Standard Pacific (NYSE: SPF) (Cramer's Take) and Centex (NYSE: CTX) (Cramer's Take) need to go bankrupt before the Fed can ease any more.

Many of these firms lent money recklessly. Are the Fed heads thinking these companies need to pay like the New Centurys and the NovaStars (NYSE: NFI) (Cramer's Take) did? (Are the feds, by the way, thinking that this GMAC company has to go because that was a huge provider of crummy mortgages?)