Stocks flatten after weak home sales

2007-12-28 07:24:00 THE ASSOCIATED PRESS

NEW YORK - Stocks erased an early rally Friday after the government reported sales of new homes fell in November to their lowest level in more than 12 years.

The Commerce Department report that new-home sales fell by 9 percent from October to a seasonally adjusted annual rate of 647,000 stirred investor concerns that consumers worried about falling housing prices could derail the economy's already weakening growth.

The Dow Jones industrial average rose 6.66, or 0.05 percent, to 13,366.27.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 1.74, or 0.12 percent, to 1,478.01, and the Nasdaq composite index rose 3.08, or 0.12 percent, to 2,679.87.