US stocks set for worst week of 2012 Homebuilders slumped as US equities recovered some ground on Friday but stocks were still set to record their worst week of 2012. KB Home , one of the largest homebuilders in the US, reported a slowdown in new home orders heading into the spring season, which provoked concerns about the prospects of a housing market recovery. Shares in the company fell 11.4 per cent to $9.96. The reaction to KB Home's announcement reverberated across the sector. PulteGroup , another homebuilder, was the biggest faller on the S&P 500 down 4.1 per cent to $8.75, and DR Horton dropped 2.5 per cent to $15.12. The S&P 500 homebuilders index, which had risen 68 per cent since last October, has lost more than 4 per cent this week. Key housing data released throughout the week showed signs that while housing recovery was stabilising, the pace was slowing. After the run up we have had this year, you want to see the markets take a pause and consolidate. They were not any new, fresh drivers to take us higher this week with the data being mixed," said Rebecca Patterson, chief market strategist at J.P. Morgan Asset Management. For the week overall, I'd probably give the US housing data a grade of B- or C+. There are some details to suggest we are bumping along the bottom rather falling off the wagon. The story for the US is not great, but it's still improving and nothing this week changed our view. Overall, the S&P 500 started the final trading day of the week down fractionally to 1,392.54, but the main US market has had its worst week since mid-December, falling 0.8 per cent. However, the benchmark US index is still up more than 10 per cent on the year to date. The Nasdaq Composite Index was up slightly to 3,063.63. Apple , the most heavily weighted stock on the tech heavy index, was up 0.2 per cent to trade just above the $600 mark. Nike , the world's largest sporting goods company, reported on Thursday that revenues rose 15 per cent like-for-like to $5.8bn, driven by strong demand in North America, but its shares fell 1.2 per cent to $109.66 as analysts" considered the pressure on the company's forward profit margins and valuation. Camilo Lyon, analyst at Canaccord, said: "Taking it altogether ... we believe the stock should trade down, especially considering the peak 21 times price to earnings multiple at which it currently trades. Given the strength in North America futures, we would rather play the strength of the footwear cycle via the retailers, in particular "buy"-rated Foot Locker and Dick's Sporting Goods ." The Dow Jones Industrial Average was off 0.1 per cent to 13,037.82. Earthmoving equipment manufacturer, Caterpillar , was up 0.2 per cent to $106.70 but remains one of the worst performing stocks in the blue-chip index. Shares in the company have fallen more than 6 per cent as fears of a slowdown in global growth re-emerged this week.