The old 'buy the rumor, sell the fact' trade is in play now, and that will apply to the expected results set to come out,

This suggests one of two things: either investors are unduly optimistic about the sector, or more ominously, perhaps, the homebuilders are seeing strong demand from non-traditional buyers, ... In other words, real estate speculators have moved into the market, replacing owner-occupiers as the primary end-buyers.

Sure, lower rates might offer another brief respite in an environment that has seen increasing dollops of profit-warnings and negative economic news recently, but when that is all said and done, a poor operating environment is unlikely to be a boon for corporate profits -- or U.S. shares prices -- in the months ahead, ... The New Laws of the Stock Market Jungle.

foolishly play with the fires of rumor, only to risk being burned by its treacherous flames.

It's ridiculous, isn't it? The rumor is our cost will go up another 30 cents tonight.

This rumor has stimulated call buying by speculators yesterday and today, hoping that the price of the stock will jump.