Upbeat housing reports lift stocks
by Daniel Wagner, AP Business Writer
September 20, 2012 12:00 AM | 465 views | 0 0 comments | 4 4 recommendations | email to a friend | print
A pair of encouraging reports about the housing market gave U.S. stocks a little boost Wednesday.

Stocks of homebuilders, already up after the construction report, rose sharply after 10 a.m., when the jump in home sales was reported. D.R. Horton Inc. rose 87 cents, or 4.1 percent, to $22.22; Beazer Homes USA Inc. rose 22 cents, or 6.2 percent, to $3.75; and KB Home rose 46 cents, or 3.6 percent, to $13.16.

The gains for broader stock indexes were muted. At its high for the day, the Dow Jones industrial average was up just 62 points.

The housing numbers “are fantastic news,” but traders continue to worry about recent discouraging signals this week like downgrades of railroads and a warning from Federal Express that the global economy is slowing, said JJ Kinahan, chief derivatives strategist for TD Ameritrade, a retail brokerage.

“The market is at a bit of a conundrum,” Kinahan said. “There are just constantly these mixed signals about what’s going on.”

The Dow closed up 13.32 points, or 0.1 percent, at 13,577.96. The Dow is just a 4 percent rally shy of its all-time high of 14,164, reached Oct. 9, 2007.

The Standard & Poor’s 500 index rose 1.73 points, or 0.1 percent, to 1,461.05. Telecom and consumer discretionary stocks added the most among the industry groups in the S&P 500 index.

Energy stocks suffered as the price of oil fell $3.31, or 3.5 percent, to $91.98 per barrel. Traders are questioning whether economic growth is strong enough to justify a recent run-up to $100 per barrel. Crude is down 7 percent this week.

The Nasdaq composite index rose 4.82 points, or 0.2 percent, to 3,182.62.
Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides