U.S. stocks edged up slightly higher, after swinging back and forth in a narrow range, as investors preferred to remain on the sidelines.  After yesterday’s better-than-expected reports on housing and consumer confidence, investors looked for fresh signs to help restart a rally that has catapulted major indexes to multi-month highs. 

Yesterday, fifteen of the thirty DJIA components closed higher; 245 of the S&P500 closed up and 42 of the NASDAQ100 finished on higher ground.  Trading was subdued with NYSE volume of 1.05 billion well below last year's average of 1.49 billion.  The DJIA gained 4 points to close virtually flat at 9543; the NASDAQ and S&P500 each recorded gains of 0.01%.  Declining issues beat those that advanced eight to seven.  Treasuries were mixed after the government successfully auctioned $39 billion in five-year notes.  The Treasury is scheduled to auction $28 billion of 7-year notes today.

Five of the S&P500

First time home buyers are in luck, construction of new U.S. homes rose in June to the highest level in seven months as builders rushed to pour foundations for homes that must be completed by the end of November in order to be eligible for a special tax break. Buyers can take advantage of a tax credit worth 10 percent of the purchase price, with a cap of $8,000, included in the federal stimulus package.

On Friday, the Commerce Department said that construction of new homes and apartments jumped 3.6 percent last month to a seasonally adjusted annual rate of 582,000 units, from an upwardly revised rate of 562,000 in May. The figured surpassed the 530,000-unit pace estimate that economists predicted, and was the second straight monthly increase after April’s record low of 479,000 units, prompting one economist to write that, “[it is] the most positive housing report in ages.” Meanwhile,