Continued signs of stabilization in the market, from a reversal of falling home price to a tightening in credit spreads, have analysts optimistic about the builders' future. No wonder the sector is hot.

Investors who capitalized on the market's amazing six-month run are now going to want to find a way to protect their profits.

New home sales rose a tepid 0.7 percent last month, missing Wall Street expectations and providing more evidence the housing market recovery remains tentative.

Stocks ended flat Tuesday as investors took a breather after Monday's blockbuster rally.

Stocks struggled to stay in positive territory for any length of time Tuesday as profit-taking after Monday's blockbuster rally overshadowed a fifth-straight rise in pending-home sales.

Stocks bounced back from a lower open Tuesday after a surprisingly sharp jump in pending-home sales.

Futures suggested stock would retreat Tuesday after a milestone session on Monday that sent the S&P over 1,000 for the first time since November.

The Chinese market is likely to fall 25 percent, taking U.S. stocks with it, with the S&P 500 possibly falling below 800, Robin Griffiths, technical strategist at Cazenove Capital, said Monday. But then U.S. indexes will rise again for a substantial amount of time, with the Dow estimated to rise to 1,250, he added.

Shares of homebuilders slid Wednesday as new home sales dropped for the first time in five months.

Fresh signs that the economy is stabilizing  emerged Tuesday in reports that home construction rose more than expected last month and wholesale prices remain in check.

Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit to pay for some of the costs of buying a home purchase.

Housing construction fell to a record low in April as a steep drop in apartment building offset a rebound in single-family construction.