Dow Jones surges on weaker Pending Housing Data

The Dow Jones Industrial Average surged on Wednesday after the release of US economic data, with the release of another housing report as well as a Fed’s manufacturing index out. Tesla stock hit another new low before bouncing sharply, looking to recover a small bite of its historic December plunge.

Wednesday’s economic data includes the Pending Home Sales Index and the Richmond Fed manufacturing index. The Richmond Fed isn’t likely to trigger much stock action.

But November pending home sales could move homebuilder stocks, which have recently shown increasing signs of strength. Pending home sales from the National Association of Realtors dropped 4% in November, much worse than the expected 0.5% fall.

On Tuesday, Case Shiller reported that home prices fell in October for the fourth straight month, as higher mortgage rates continue to curb demand. The Case Shiller home price index for November is due in late January.

Meanwhile, the index out of Richmond, Va., for the Federal Reserve’s Fifth District Survey of Manufacturing Activity posted a 1 reading for December, higher than the expected -6 reading and November’s -9 reading. The survey gauges manufacturing activity in the region bordered by Maryland, South Carolina and West Virginia.

On the earnings front, chicken egg distribution giant Cal-Maine Foods (CALM) will report Wednesday after the close. CALM stock is in buy range past a 62.74 buy point after strong gains in recent weeks.

Electric-vehicle leader Tesla (TSLA) reversed higher Wednesday, rallying more than 4% as Baird affirmed its outperforming rating on the stock, despite a price target cut, and after Wedbush forecast the automaker would likely miss its fourth-quarter estimates. Dow Jones tech leaders Apple and Microsoft traded higher after today’s stock market open.