U.S. stocks fell after a five-day rally sent 500 Standard & Poor's most expensive level since June

U.S. stocks fell after a five-day rally sent 500 Standard & Poor's most expensive level since June, offsetting a rebound in durable goods orders and a drop in jobless claims.

Lennar Corp. and D.R. Horton Inc. fell at least 3 percent after a government report showed that fewer than expected new homes were sold in November. Micron Technology Inc. lost 3.2 percent as the largest U.S. manufacturer of computer memory chips in fiscal first-quarter sales that missed analysts' estimates. Nasdaq OMX Group Inc. fell 1.6 percent after BMO Capital Markets cut its rating on the shares.

The S & P 500 fell 0.1 percent to 1,257.58 at 11:25 am in New York. His statement yesterday to a maximum of two years pushed its valuation to 15.7 times reported profits, the highest since June. The Dow Jones industrial average rose 19.53 points, or 0.2 percent, at 11,579.02. the U.S. stock exchange are closed tomorrow for the Christmas holiday.

"The stock market has gone too far, too fast," said James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, which oversees 342 billion U.S. dollars. "Many people wonder how far it will go before a withdrawal. The economic data points that we receive are good in general, but not crazy good. That may explain the muted response from investors."

46% dive

The S & P 500 Index completed its recovery this week's fall of 46 percent following the bankruptcy of Lehman Brothers Holdings Inc. 's September 2008, government data showed the U.S. economy grew at an fastest pace in the third quarter than previously estimated. The stock index rose 6.6 percent in December to the night after posting a total gain of 13 percent in September and October, the largest increase in those months since 1998.

U.S. equity futures compared decreases after the Labor Department figures showed that jobless claims fell last week and the number of people runs unemployment benefits fell to a minimum of two years, reinforcing the evidence of the labor market is improving. first-time filings for unemployment insurance declined in 3000 to 420,000 in the week ended Dec. 18.

Moreover, the Commerce Department said stocks of goods such as computers and communications equipment rose 2.6 percent after declining 3.6 percent in October, which was lower than previously estimated. Another Commerce Department report showed that spending by U.S. consumers increased in November for the fifth consecutive month, showing most of the economy is strengthening ahead of 2011.

Home Sales

Stocks extended declines on concerns about weakness in the U.S. housing market. New home builders are selling less than estimated in November, purchases increased 5.5 percent to a 290,000 annual pace of 275,000 in October, which was lower than estimated, the Commerce Department figures showed.

All 12 stocks in the S & P 500 Supercomposite Homebuilding Index fell, sending the group down 2.5 percent. Lennar, the homebuilder U.S. third largest, fell 3.8 percent $ 18.24. D.R. Horton, the homebuilder's second-largest U.S. by revenue, fell 3 percent to $ 11.91.

Micron fell 3.2 percent to $ 8.02. Fiscal first-quarter sales of $ 2,250,000,000 missed the average analyst projection of $ 2,370,000,000.

Nasdaq lost 1.6 percent to $ 23.77 after BMO Capital Markets downgraded the stock exchange operator market "run" from "outperform."

High optimism

"Optimism about the stock was very high but people are afraid to short the market," said Mark Bronzo, who helps manage 21 billion U.S. dollars in Irvington, New York, Security Global Investors. "The economy is growing at a moderate pace, but most data points are moving in the right direction. The U.S. is likely to surprise positively."

Optimism on U.S. stocks among newsletter writers rose to its highest level since mid-October 2007, the week after the S & P 500 and Dow Jones rose to records. The proportion of publications followed by Investors Intelligence Bullish rose to 58.8 percent on 21 December from 56.8 percent a week earlier, the company said yesterday. The sentiment has improved since October 2008 when the financial crisis brought the figure to at least 20 years of 22.2 percent.

Bed Bath & Beyond Inc. had the biggest gain in the S & P 500, rising 6.2 percent to $ 50.63. The home furnishings retailer forecast full-year earnings of at least $ 2.86 per share, beating analysts' average estimate by 5 cents. The company also announced a plan to repurchase $ 2 billion.

Alcoa Inc. rose the most in the Dow, rising 2.4 percent to $ 15.51. The largest U.S. aluminum producer can be purchased for $ 22 per share next year, TheStreet.com 's Jim Cramer said.