It is called "tomato leaf roll" (lots of info about it over on the Growing Tomatoes forum here). It is a physiological response of the plant to stress. Without knowing more about your growing conditions there is no way to ID the source of the stress but excess watering is one of them.

It poses no real threat to the plant assuming you ID the problem and correct it.

You can also Google 'tomato leaf roll' and read lots about it.

Dave

I have never had this particular problem with tomato transplants, however, I have lost other seedlings with similar problems. I have learned to transplant in cloudy, overcast weather, if at all possible. Two or three days of cloudy weather gives the roots a chance to settle in and begin to grow. If the roots can supply enough moisture and nutrient to the leaves, the plant will prosper. The worst weather for transplants is sunny and windy combined. When this happens, it is possible to save the seedling by shading it from the sun for a few days. Partial shade will help, and total shade seems to work, too.

Thanks I look at pictures of leaf roll and it does appear what I have. I will try to cut the water back and see if that helps.