THINGS ARE LOOKING BETTER!!

A better-than-expected report on pending home sales and strong results from home builder D. R. Horton (DHI) helped ease concerns about the housing market and lift stocks today.

The National Association of Realtors' index of pending home sales rose 1% in December after tumbling 16.4% in November. Pending sales reflect deals that have been signed but not completed. Sales were up 10.9% from the same month a year ago. The index has risen for nine out of the past 10 months as buyers work to take advantage of homebuyer tax credits extended by the government to prop up the market.

D.R. HORTON SWINGS TO PROFIT
D. R. Horton's shares were up $1.27, or 10.7%, to $13.18 after the nation's second biggest home builder posted its first quarterly profit in nearly three years. The Fort Worth company said it swung to a profit of $192 million, a huge improvement from the net loss of $62.6 million it posted in the same quarter a year ago.

"Market conditions in the home building industry are still challenging," D.R. Horton chairman Donald Horton said in a statement. "However, new home inventory remains low, interest rates are favorable and housing affordability is near record highs."

Source: MSN Money Market Dispatches 2/2/2010 (updated at 2:10 p.m. ET)