Disappointing housing data drives stocks down

An unexpected drop in sales of new homes last month is stalling a three-day rally on the stock market, leaving indexes narrowly mixed. Stocks started out modestly higher early Wednesday after a report showing growth in consumer spending last month, but started to retreat at midmorning after the Commerce Department said sales of new homes plunged 11.3 percent in November to their lowest level since March. The housing weakness followed news that personal spending and income both rose in November. In midday trading, the Dow Jones industrial average is down 0.38, or less than 0.1 percent, at 10,464.55. The Standard & Poor's 500 index is up 1.58, or 0.1 percent, at 1,119.60, while the Nasdaq composite index is up 11.61, or 0.5 percent, at 2,264.28.