Stocks Mixed on Housing News

Markets reel, then recover from slow sales report
By Nick McMaster,  Newser Staff
Posted Dec 28, 2007 3:53 PM CST
A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver in this Aug. 29, 2007 file photo. (AP Photo/David Zalubowski, file)   (Associated Press)
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(Newser) – The markets were mixed in a volatile session today, with the Dow ending just slightly higher after more bad news from the housing sector erased an early-morning 100-point rally, Marketwatch reports. The Dow rose 6.26 to close at 13,365.87, and the S&P 500 climbed 2.12 to 1,478.49, but the Nasdaq fell 2.33 to 2,674.46.

The Commerce Department announced that sales of new homes in November fell much more than expected, and the bad news was "the turning point and pushed [the market] lower," a Deutsche Bank expert told MarketWatch, noting the markets were sensitive due to light post-holiday trading volume. “We're still looking at an economy that's growing at a slower rate, but still growing," he said.