Housing stocks trim losses after home sales data

NEW YORK (Reuters) - Housing stocks were modestly lower on Wednesday, after paring earlier losses following data that showed new home sales jumped sharply in August.

The PHLX Housing index (HGX) was down 0.1 percent after earlier falling as much as 1.3 percent on the back of results at KB Home (N:KBH).

New home sales rose 18 percent, hitting a six-year high in August. The report comes after Monday's read on existing home sales, which unexpectedly dropped 1.8 percent.

KB Home fell 6.1 percent to $15.92 following third-quarter earnings and sales that missed expectations.

While its results weighed on other names in the sector, share prices of the latter recovered somewhat following the data. D.R. Horton Inc (N:DHI) fell 0.4 percent to $21.20 while Beazer Homes (N:BZH) was off 0.7 percent at $17.80. Toll Brothers (N:TOL) was flat at $32.27 after earlier falling to its lowest level since November.

Index snapshot at 10:07 a.m. EDT:

* S&P 500 (SPX) was falling 0.8 points, or 0.04 percent.

* Nasdaq Comp (IXIC) was adding 3.26 points, or 0.07 percent.

* Dow industrials (DJI) was adding 2.05 points, or 0.01 percent.

* Russell 2000 <.TOY> was adding 0.16 points, or 0.01 percent.

* S&P MidCap (IDX) was dropping 2.42 points, or 0.17 percent.

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* S&P SmallCap <.SPCY> was losing 0.09 points, or 0.01 percent.