including a legal settlement, lennar was profitable in the quarter. shares saw heavier volume, slipping more than 3%. now revenue from home sales dropped and average sales prices dropped for lennar. about the only bright spot was its investments in distressed real estate loans, which are generating profits. other homebuilders were hurt by lennar, and the drop in the case-shiller home price index we reported on earlier. m.d.c., k.b. home and the ryland group lost about 2% each. warner music was hitting some higher notes today-- how about this, a 13% rally on four times its usual volume. highest level we've seen since last spring. a german media report indicates german media company bertelsmann and private equity firm k.k.r. want to buy it. speaking of deals, g.e. is parting with $3.2 billion of its cash for a majority stake in converteam. that's a french company that makes gear to turn mechanical power into electricity. it will be folded into g.e.'s technology arm. g.e. shares gained a fraction. finally, for-profit education. apollo group lost money in

>> suzanne: here's what we're watching for tomorrow: we'll see quarterly results from homebuilder lennar, along with january's s&p/case shiller home price index. and, we'll talk to starbucks c.e.o. howard schultz about plans to expand in grocery stores. >> reporter: this is diane eastabrook. tomorrow, i'll take you to austin, texas-- a city that's shaping the future of electric vehicles. >> suzanne: online auction house ebay is doing some buying of its own. the company is purchasing g.s.i. commerce for almost $2.5 billion in cash and debt. g.s.i. owns and manages retail websites. the two firms say the deal will let them connect buyers and sellers with ease. it also makes ebay more of a rival to online powerhouse amazon.com. but the transaction hasn't been gaveled yet, as g.s.i. has until may 6 to entertain other offers. >> tom: ebay's electronic payment system paypal will face a new competitor-- american express. the charge card company is rolling out a product called "serve" that lets customers transfer money to other people using mobile phones and the internet. serve will expand amex's