DAVE HARRIS: Welcome to Dave On Stocks Podcast #76. I'm Dave Harris. It's Tuesday morning September 25^th 2007. I'm a long-term investor with a perspective on the market and individual stock advice.

Housing in the spotlight this morning as homebuilder Lennar (LEN) reported a fiscal third quarter loss and revenue fell 44 percent. The company confirmed housing market deterioration in the quarter. While the credit crunch and mortgage troubles hurt results in the quarter, Lennar continues to face pricing pressures in the industry. As far as the eye can see, I think we'll have further troubles in housing. Maybe the industry will bottom late 2009. But for now, I have a sell rating on the stock. It's down .85 at $23.33 per share.

Weaker consumer spending is also concerning investors today. Retailer Target (TGT) cut its September same-store sales forecast, also expecting a weaker holiday shopping season as consumers struggle with higher energy costs and a weaker housing market. Same-store sales are expected around 2.5 percent higher in September. That's down from an expected 4 - 6 percent increase. But keep in mind that Target is a well-run business, and they're being cautious. That’s going to turn around. I think the weakness in the stock this morning is a good opportunity to buy. TGT is 2.80 lower at $61.50.

Downbeat news also coming from Lowe's (LOW), as the home improvement store lowered fiscal 2007 full year guidance. Results should fall near the lower end of the company’s $1.97 – $2.01 per share range. That's still in line with most estimates. In the long term (maybe 3 or 4 years from now), I expect Lowe's to generate respectable profitability based on company statements. But for now, I would sell the stock. LOW is losing 1.77 at $28.78 per share.

The digital music store on Amazon (AMZN) began today. Amazon MP3, the digital music service much like Apple's (AAPL) iTunes store, provides downloads of songs that can be copied on to computers, Apple iPods and CDs.  Top 100 albums are $8.99 or less and individual songs are .99 or .89 cents. That's lower than the iTunes .99 cent price per song. After a quick glance, I noticed the prices for many full albums on Amazon are cheaper than iTunes. At $8.99, Queen Latifah’s new release "Trav'lin' Light" sells for a dollar less on Amazon. So does Joni Mitchell's "Shine" album, also cheaper on Amazon. Will Apple lower prices?

In economic data, September consumer confidence at 99.8 fell below expectations, according to the Conference board. That's the lowest level since November 2005 as employment concerns weighed on consumers. Also, existing home sales fell 4.4 percent and generally in line with market views.

The market is mixed with the Dow Jones Industrials are gaining a little and ahead 3.01 points at 13,762.07. The NASDAQ is up 5.56 at 2673.51. The S&P 500 down 2.49 at 1515.24.

That's all for today's podcast of Dave On Stocks. I'm Dave Harris. Write me with any questions or comments at the "contact us" link on this page. My website is www.daveonstocks.com. I'll talk to you again soon. This is Dave On Stocks.