Surging New Home Construction Boosts Markets Higher

Investors pleasantly surprised by a surge in new home construction lifted the markets to a sharply higher close with the Dow surging 179 points to 7396.  Nasdaq leaped 58 points to 1462.

On the upside

Developers Diversified Realty (NYSE: DDR) declared a dividend of $0.460938 per depositary share of Preferred Class H stock and a dividend of $0.46875 per depositary share of Preferred Class I stock.

ON Semiconductor (Nasdaq: ONNN) added thirty silicon-proven IP blocks to its intellectual property portfolio.

Ford (NYSE: F) will scale back production at its factories in Valencia, Spain and Saarlouis, German due to a large drop in new car demand.
 
On the downside

Sauer Danfoss (NYSE: SHS) swung to a fourth quarter loss due to charges and sharply lower orders.  The company suspended its dividend, will freeze salaries and plans to exit unprofitable busineses.

LaBranche & Co. (NYSE: LAB) warned of first quarter losses due to the significant erosion of market conditions.

Moody's Investors Service placed Atlas Pipeline Partners' (NYSE: APL) debt ratings on review for a possible downgrade.

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on the NYSE and by nearly 7 to 1 on Nasdaq.  The Russell 2000 which tracks small cap stocks rocketed 17 points to 404.