S&P, Nasdaq Turn Positive as Ford Gains

The S&P and Nasdaq turned positive Tuedsday as Ford shares jumped more than 5 percent ahead of the auto maker's sales numbers, due out soon.

The Dow remained slightly lower after a report showed pending-home sales fell much more sharply than expected.

Consumer staples, health care and utilities were the biggest drags. Financials, consumer discretionary and energy advanced.

The dollar declined, while oil and gold were slightly higher.

Pending-home sales tumbled 16 percentin November, much steeper than the 5-percent drop expected and the 3.7-percent gain logged in October. However, sales rose 15.5 percent year over year.

Economists chalked up the droff in pending-home sales to the original expiration of first-time homebuyers' tax credit but expect they'll ramp up again in the first half of 2010 as the tax credit was extended.

The morning's other data point was factory orders, which rose 1.1 percentin November, more than double of what was expected. But what economists — and the market — are waiting for is Friday's jobs report. The buzz in the market is that this could be the first report in two years to show jobs added to payrolls — and that it could be up to 40,000 jobs.

Expectations of a gain are building in the market but Joel Naroff of Naroff Economic Advisors says don't worry if it doesn't happen this Friday.

"The data are pointing to a return to payroll gains not losses and which month it occurs doesn’t matter much," Naroff wrote in a note to clients. "What the economist community is arguing about is how strong those increases will be. I worry that they will not be very robust this year."

Ford shares hit their highest level since 2005 as investors bet the auto maker will post strong sales in the next hour or so, following a report out of China earlier today that Ford's joint venture there saw sales jump nearly 55 percentin 2009.

Auto sales will trickle out through the early afternoon. Overall, economists expect to see a seasonally adjusted annual rate of 10.9 million vehicles, which would match the November rate.

Radio Shack shares jumped after Goldman Sachs raised the electronics retailer to a buy rating and pushed its price target to $25 from $21.

Kraft led the Dow after the company sold its frozen pizza business to Swiss food maker Nestle for $3.7 billion and raised its offer for Cadbury using the proceeds of that sale.Cadbury quickly rejected the new offer.

Rounding out the Dow's top three were Bank of America and Alcoa .

Winterizing Your Portfolio - A CNBC Special Report
Winterizing Your Portfolio - A CNBC Special Report

Apple shares were slightly higher amid increasing buzz about a Mac tablet that could be unveiled later this month and as app downloads reached 3 billion.

Meanwhile, Nokia launched yet another patent lawsuit against Apple, escalating a legal battle over patents used in iPod and iPhone products.

All this comes on a significant day for the smartphone market, as Google is expected tounveil the "Nexus One" smartphone at an event at its Mountain View, Calif. headquarters.

And Continental Airlines' new CEO Jeff Smisek said he'll forego his annual salary and bonus until the company is profitable for a full year. Smisek had previously served as the airline's president and had received total compensation of almost $4.9 million in 2008.

This Week:

TUESDAY: Auto sales; factory orders; pending-home sales
WEDNESDAY: EU regulators' decision on Cadbury/Kraft deal; weekly mortgage apps; Challenger, ADP jobs reports; ISM services index; weekly crude inventories; Fed minutes; Earnings from Family Dollar, Monsanto, Bed, Bath & Beyond
THURSDAY: CES; chain-store sales; Bank of England rate decision; jobless claims; Fed's Hoenig speaks; Earnings from Constellation, Lennar
FRIDAY: Jobs report; wholesale trade; Fed's Lacker speaks; consumer credit

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