New home sales rose a tepid 0.7 percent last month, missing Wall Street expectations and providing more evidence the housing market recovery remains tentative.

The drive for Dow 10,000 hit a bump in the road Monday as investors took a breather, sending stocks down more than half a percent at the open. Stocks remained lower after a report showed leading indicators rose for a fifth straight month.

Shares of most homebuilders moved higher Monday after a big jump in house resales last month.

Fresh signs that the economy is stabilizing  emerged Tuesday in reports that home construction rose more than expected last month and wholesale prices remain in check.

Housing construction fell to a record low in April as a steep drop in apartment building offset a rebound in single-family construction.

The National Association of Home Builders says its housing market index increased for the second month in a row in May, reflecting growing optimism on the part of many builders