Wall Street stocks declined sharply on Thursday as disappointing company earnings and housing data compounded growing fear over the US credit market.

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John Authers asks whether nervousness over the credit market is finally showing up in US equities

Bad earnings news from the housing sector continued as DR Horton, the homebuilder, reported its first-ever quarterly loss. Its shares were down 1.8 per cent at $17.16. Beazer Homes also posted a $123m quarterly loss, sending its shares down 8.7 per cent at $15.56. This followed second quarter losses reported late on Wednesday from Pulte Homes, whose shares sank 3.1 per cent to $20.04 on Thursday. Ryland Group bucked the trend in the sector and its shares gained 1.3 per cent to close at $33.36.