Stocks are giving up early gains Wednesday after a report showed sales of new homes unexpectedly fell last month.
The Commerce Department says new home sales fell 11.3 percent in November to their lowest level since March. The market had rallied a day earlier after sales of existing homes rose much faster than expected last month.
New home sales fell to a seasonally adjusted annual rate of 355,000, the lowest level since March. Economists had forecast sales would rise to 440,000.
The Dow Jones industrial average is down 13.46, or 0.1 percent, at 10,451.47. The Standard & Poor's 500 index is down 0.50, or less than 0.1 percent at 1,117.52, while Nasdaq composite index is up 2.97, or 0.1 percent, at 2,255.64.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stocks rose modestly in early morning trading Wednesday on more signs consumers are spending again. Major indexes are up for the fourth straight day.
Overseas markets are rising as well, also boosted by prospects for economic growth. Major indexes in France and Germany both hit 2009 highs a day after the Standard & Poor's 500 index and the Nasdaq composite index closed at their highs for the year.
The Commerce Department on Wednesday reported that consumers' income rose at the fastest rate in four months in November, allowing them to increase their spending for the second straight month. Consumer spending is critical for a rebound in the economy because it accounts for about 70 percent of all economic activity.
The government also said personal incomes rose 0.4 percent, helped by an increase in wages. Spending increased 0.5 percent last month.
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