The early movement Tuesday was not surprising given that the Dow Jones industrials soared more than 150 points Monday on upbeat manufacturing reports in the U.S. and China. The stock market is slightly lower after reports on factory orders and housing gave mixed signals about the economy.
Orders to U.S. factories posted a surprisingly big gain in November, reflecting strong demand in a number of industries from steel and industrial machinery to computers and chemicals.
The advance was double what had been expected and provided further evidence that manufacturers are beginning to pull out of their steep slump.
The Commerce Department said Tuesday that orders rose by 1.1 percent in November, much better than the 0.5 percent increase economists had forecast. The increases were widespread outside of autos and aircraft, which posted declines.
However, on the housing front, the number of buyers who agreed to purchase previously occupied homes fell sharply in November, an indication that sales will fall this winter, undermining last summer's recovery.
The National Association of Realtors says its seasonally adjusted index of sales agreements fell 16 percent from October to a November reading of 96. It was the first decline following nine straight months of gains and the lowest reading since June.
The drop was far larger than the 2 percent expected from economists surveyed by Thomson Reuters.
The report shows that consumers are taking their time following the extension of a tax credit deadline. The incentive of up to $8,000 for first-time buyers was set to expire at the end of November. But Congress pushed back the date and expanded the program.
Investors had mixed reactions to the reports. The Dow industrials fell 28.72, or 0.3 percent, to 10,555.24. The broader Standard & Poor's 500 index rose 0.25, or less than 0.1 percent, to 1,133.24, while the Nasdaq composite index fell 0.89, or less than 0.1 percent, to 2,307.53.
Yesterday’s Top Performing Small Cap stocks:
GWS Technologies, Inc. (OTC BB: GWSC) was a SmallCapVoice.com top performer yesterday closing up over 17% on trading volume of 20,106 shares.
GWS stands for GreenWindSolar. GWS is an alternative energy technology company focused on developing, marketing, and implementing solar and wind-powered renewable energy products and solutions for various commercial, industrial, and governmental end-users. GWS is also building strategic partnerships with companies that are developing cutting-edge technologies and solutions. By harnessing the power of the wind and the sun, GWS is helping consumers and businesses generate their own clean power, reduce carbon emissions, and become part of the global energy solution.
Today’s SmallCapVoice.com Hot Stock to Watch:
Zenergy International, Inc. (Pink Sheets: ZENG)
Zenergy International, Inc. is a global biofuel solutions provider that works to deliver biofuels at a competitive price, focusing on sustainable resources, safe practices, and compliance with all environmental laws. The Company strives to minimize overall environmental impact. Zenergy is engaged in the development and acquisition of biofuel sites, including constructing, acquiring existing facilities and operating fuel-grade biodiesel and ethanol plants.
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