Stocks and many exchange-traded funds (ETFs) lost ground for a third straight day as investors grew increasingly uneasy about a recent move away from riskier assets and into U.S. Treasuries.

As investors moved money out of stocks, they moved money into safer investments like Treasury bills, report Stephen Bernard and Tim Paradis for the Associated Press. The yield on the three-month T-bill today was 0.02%, after falling to a yield of 0.005% late Thursday. In fact, yields briefly turned negative Thursday as demand jumped for this safest of short-term investments. The SPDR Barclays Capital 1-3 Month T-Bill ETF (NYSE: BIL) has a year-to-date return of 0.22%, with a yield of 0.28%. (For more stories on Treasuries, see our treasury bonds category).

Disappointing results from Dell (NASDAQ: DELL), the world’s number-three PC brand, weighed on investor sentiment. Dell is recovering from the global slowdown a bit slower than its competitors because of its reliance on commercial versus consumer business, writes Kelvin Soh for Reuters. Dell did say, however, that PC demand has picked up following the launch of Windows 7 from Microsoft (NASDAQ: MSFT). The Technology Select SPDR ETF (NYSE: XLK) and the iShares Dow Jones U.S. Technology Index Fund (NYSE: IYW) are both just down fractionally for the day. However, Dell’s stock is currently down more than 8%. (For more stories on the technology sector, see our technology category).

Home-building giant DR Horton (NYSE: DHI) said today that orders surged 26% on a unit basis and that it narrowed its fiscal fourth-quarter loss. However, the company did miss analyst estimates and took hefty land-related charges, reports Dawn Wotapka for the Dow Jones Newswires. The company went on say that conditions are still challenging in the industry because of rising unemployment, weak consumer confidence and high inventory levels. The stock is currently down more than 9%, while the SPDR S&P Homebuilders ETF (NYSE: XHB) is down 2% today. (For more stories on the homebuilding industry, see our homebuilders category).

Tony D’Altorio contributed to this article.

Equities slid on Wednesday morning as an unexpected drop in home construction raised concerns about the pace of the economy’s recovery, say Stephen Bernard and Tim Paradis for the Associated Press. The U.S. Commerce Department reported that the construction of homes and apartments as well as building permits, a key gauge of future activity, fell well short of expectations held by economists. The puts into question Wall Street’s belief in a V-shaped recovery. iShares Dow Jones U.S. Home Construction Index (NYSEArca: ITB) is trading flat this morning.

Inflation figures were also a bit of a surprise to the markets. U.S. inflation accelerated in October as energy prices rose again and car prices rose at the fastest pace since the early 1980s, reports Rex Nutting for MarketWatch. The consumer price index (CPI) rose a seasonally adjusted 0.3% in October, while the core CPI rate, which excludes food and energy, rose by 0.2%.

Meanwhile, gold hit another fresh record high – near $1150 an ounce – in trading today. Another dip in the value of the U.S. dollar added to momentum buying as prices broke through key technical resistance levels, says Jan Harvey for Reuters. The gold market is being underpinned by fresh interest in gold from central banks after a recent major bullion purchase from India and smaller purchases by the central banks of Sri Lanka and Mauritius. The SPDR Gold Shares Trust ETF (NYSE: GLD) is currently trading up by a half percent at $112.50 a share. (For more stories on gold, see our gold category).

In an interesting development, Goldman Sachs (NYSE: GS) is attempting to spruce up their image and generate some goodwill in this holiday season. Goldman is trying a new tack to improve its public image, writes Graham Bowley for The New York Times. The company is apologizing for past mistakes and sharing some of its riches. It will spend $500 million to help thousands of small businesses recover from the recession. (For more stories on the financial sector, visit our financial category).

Tony D’Altorio contributed to this article.

Some retailers reported better-than-expected third-quarter earnings, including Home Depot (NYSE: HD), Saks (NYSE: SKS) and Target (NYSE: TGT). But the retailers also cautioned that they were nervous about the holiday shopping season, say Stephen Bernard and Tim Paradis for the Associated Press. The earnings follow yesterday’s report that showed October retail sales rose 1.4%. (Retail sales rise). Retail HOLDRs (NYSEArca: RTH) is down about 1.3% this morning; Target is 8.5% and Home Depot is 12%. (For more stories about retail ETFs, visit our category page).

Wholesale inflation fell unexpectedly last month while industrial output rose less than forecast. This gives the Federal Reserve more impetus to keep interest rates at record lows, report Luca Di Leo and Jeff Bater for The Wall Street Journal. The producer price index rose by 0.3%, but fell 0.6% excluding food and energy prices.

The report eases concerns that inflation will be a near-term threat to the economic recovery.

Mortgage delinquencies shot to another record in the third quarter. As of Sept. 30, 6.25% of all U.S. mortgage loans were 60 days or more past due. Last year at this time, 3.96% of all homes were delinquent, reports Eileen AJ Connelly for the Associated Press. An expert said that for the situation to right itself, home values and unemployment need to recover. (For more stories about real estate, visit our category page).

The U.S. dollar has hit a 15-month low against a basket of major currencies today on positive economic news from Asia. The feeling that the Fed won’t raise rates anytime soon and the fact that central banks will continue to provide liquidity could continue to pressure the dollar, reports Bradley Davis for The Wall Street Journal. PowerShares DB U.S. Dollar Index Bearish (NYSEArca: UDN) is down slightly this morning.

Treasury Secretary Timothy Geithner said today that he’s encouraged by the efforts Japan and China have made to increase internal demand instead of relying on Americans. It’s a shift, he said, that could contribute to more stable growth. iShares FTSE/Xinhua China (NYSEArca: FXI) is up about 0.25% this morning.

Homebuilder exchange traded funds (ETFs) are trading as high as 4.5% this morning on news that Toll Brothers (NYSE: TOL) new contracts are up 42%. The luxury homebuilder also expects fourth-quarter revenue to top expectations. SPDR S&P Homebuilders (NYSEArca: XHB) is up 3.2% this morning. For more stories about real estate, click here.

UPS (NYSE: UPS), the world’s largest package delivery service, said this morning that it expects volume to grow next year amid economic recovery. The company also said it may raise shipping rates next year, and the size will be announced in December, reports Harry Suhartono for Reuters. iShares Dow Jones Transportation Average (NYSEArca: IYT) is up about 1.5% today; UPS is 8.2%. For more stories on the transportation sector, click here.

Unrealistic assumptions, multiple layers of investors and obscene prices in the commercial real estate market are all part of the reason why the current housing bust is costlier and more complicated than previous ones, comment Mara Der Hovanesian and Dean Foust for BusinessWeek. Average housing prices have already plummeted 41% from the 2007 peak. (Long or short commercial real estate?)

In times past, developers would speed up production to cash in on a real estate bull market, but some defaulted on loans and lenders were stuck with what they financed. What makes this current bust novel is that the oversupply of money from our greedy and eager bank caused our current situation – you may have heard of mortgage-backed securities. “If the cash flow wasn’t there, you had to ignore it or find ways to create it,” remarks a banker at a large Wall Street firm.

Additionally, the wanton lending environment was ideally suited for confidence schemers and swindlers who were able to receive large loans. Loan officers during the credit boom were basically ignoring obvious problems that should have raised red flags.

More than $1.4 trillion in commercial real estate loans will be due between now and 2012. The potential losses or defaults may further dampen lending, and, consequently, impede economic growth. Some feel that if the sector can roll over this debt, REITs and ETFs may be fine. But if they can’t, it’s cause for concern.

Commercial real estate ETFs are trading above their trend lines right now, but watch them closely for any correction and have a stop loss. (How to follow trends).

For more information on the commercial real estate, visit our commercial real estate category. (The benefits of REITs).

• First Trust S&P REIT Index (NYSEArca: FRI): up 17.9% year-to-date

• Vanguard REIT Vipers (NYSEArca: VNQ): up 19.1% year-to-date

• SPDR Dow Jones REIT (NYSEArca: RWR): up 17.8% year-to-date

Max Chen contributed to this article.

In the third quarter, median home prices declined across the nation. One out of every 10 cities saw declines, and sales of distressed properties accounted for 30% of all sales, reports J.W. Elphinstone for the Associated Press. On the plus side, home sales continued to climb. Third-quarter sales were an improvement over both the second quarter and last year’s.

• MacroShares Housing Up (NYSEArca: UMM): down 8.6% in the last month

Sen. Chris Dodd introduced a financial overhaul bill this morning, which seeks greater changes than any envisioned by the White House or the House of Representatives. The 1,100-page draft would create an agency charged with identifying and removing systemic risks to the economy and consolidate bank regulation under a single regulator, report Michael R. Crittenden and Jessica Holzer for The Wall Street Journal.

• Financial Select Sector SPDR (NYSEArca: XLF): up 20.5% year-to-date

Treasuries are rising ahead of a $25 billion auction this week of 10-year notes. Analysts say the auction could be challenging. One analyst noted that recent economic indicators, including the jobs report last week, should support bond prices, says Ben Rooney for CNNMoney.

• iShares Barclays 7-10 Year Treasury (NYSEArca: IEF): down 4.6% year-to-date

Vanguard

Vanguard Group Inc. is already the largest U.S. stock and bond mutual fund manager, and now the firm has set out to conquer the ETF industry, one sector at a time. Charles Stein for Bloomberg reports that Vanguard is the third-largest sponsor of ETFs, and has captured more than 30% of the money flowing into the business this year by charging an average fee of 0.15%; the industry average is 0.54%.

Vanguard now has $77 billion in ETFs, after inflows of $17.8 billion this year. The firm’s share of the market rose to 11%, up from 8.5% at the end of last year. (How to choose ETFs).

Their strategy of charging the lowest in fees is garnering the interest of many investors who are educated on the possibility that fees can cut into principal and earnings. (What else is important when selecting ETFs?).

But Vanguard has something else interesting at play: the firm’s founder, John Bogle, has been vocal in his criticism of ETFs. His chief complaint is that they encourage short-term trading. Bogle stepped down as Vanguard’s CEO in 1996.

For more stories about ETFs, visit our ETF 101 category. Among Vanguard’s lineup of funds include:

• Vanguard Emerging Markets ETF (NYSEArca: VWO): up 68.6% year-to-date
  

• Vanguard Europe Pacific ETF (NYSEArca: VEA): up 25.3% year-to-date

• Vanguard REIT Index ETF (NYSEArca: VNQ): up 15.4% year-to-date

Congress voted to extend the tax credit and President Barack Obama signed it into law this morning, according to The Wall Street Journal. (ETFs get a lift from economic report).

An $8,000 line of credit will apply to contracts entered before April 30, 2010, and closed by June 30 for homes up to $800,000. The law will also create a new $6,500 credit for homebuyers who lived in their previous home for at least five consecutive years.

Income limits for eligible buyers are increased to $125,000 for single buyers and $225,000 for couples.

Economists for the National Association of Realtors calculated that the tax credit has contributed $22 billion to the economy and an estimated 2 million people will use the tax credit this year. NAR president Charles McMillan says the government incentive has helped stabilize the housing market, stimulate the economy and create jobs.

Naysayers think prolonging the tax credit will artificially keep home prices high.

The expansion and extension of the tax credit may also be advantageous for homebuilder ETFs as more house hunters jump into the market. (Positive signals for real estate ETFs)

For more information on homebuilders, visit our homebuilders category.

• iShares Dow Jones U.S. Home Construction (NYSEArca: ITB): up 18.5% year-to-date

• SPDR S&P Homebuilders (NYSEArca: XHB): up 21.7% year-to-date

• MACROSHS HOUSING UP (NYSEArca: UMM): up 16% since inception

Max Chen contributed to this article.

September pending home sales jumped 6.1% as homebuyers rushed to take advantage of a government tax credit. The $8,000 credit for first-time homebuyers ends at the end of this month. The number of sales of previously owned homes are now at their highest level in more than two years, reports Alan Zibel for the Associated Press. (More stories on the real estate sector).

• iShares Dow Jones U.S. Home Construction (NYSEArca: ITB)

U.S. manufacturing activity grew at its fastest rate in more than three years in October. The surge was unexpected, although some noted that it’s still improving at a modest pace, reports The Wall Street Journal. Construction spending also rose by 0.8%, although Wall Street expected a decline.

• Industrial Select Sector SPDR (NYSEArca: XLI)

CIT filed for bankruptcy this weekend in a last-ditch effort to keep operating. CIT is a lender to nearly a million small- and mid-size businesses. The lender was also a recipient of $2.3 billion in taxpayer bailout money, which will be wiped out in the bankruptcy, The Wall Street Journal notes. (How to harness the financial sector’s recovery).

Ford surprised Wall Street by announcing $1 billion in net income in the third quarter. The automaker has also forecast a “solidly profitable” 2011. Ford hasn’t posted a full-year profit since 2005, report Tom Krisher and Dee-Ann Durbin for the Associated Press.

Investors this week will be looking at various economic indicators for clues to the strength of the U.S. economy. One of the most anticipated reports is the Labor Department’s October employment report, which is due on Friday. The Federal Reserve is also going to comment on Wednesday after a two-day meeting.

New home sales had an unexpected 3.6% drop in September. Waning effects from the government’s tax credit for first-time homebuyers are being blamed for the decline, reports Alan Zibel for the Associated Press. September’s decline was the first since March. SDPR S&P Homebuilders (NYSEArca: XHB) is down more than 3% this morning. For more stories on real estate, visit our real estate category.

The Treasury Department and the GMAC, the former lending arm of General Motors, are in talks for a third round of taxpayer-funded aid. The Treasury mandated that GMAC raise another $11.5 billion after stress tests, but the lender has had to go back to the government for more cash, Reuters reports.

ConocoPhillip’s (NYSE: COP) announced its third-quarter earnings fell 71% from a year ago. The company blames lower gas and oil prices along with poor refining margins, reports Isabel Ordonez for Dow Jones Newswires. Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) are expected to report lower earnings tomorrow and Friday, respectively. Vanguard Energy (NYSEArca: VDE) is down more than 2% this morning; ConocoPhillips is 6.6%; Chevron is 13.1%; and Exxon is 19.5%.

Durable goods orders in September climbed, which is being hailed as a favorable sign for U.S. manufacturing. The 1% jump is the fourth increase in six months, reports Greg Robb for MarketWatch.

For more stories on oil, visit our oil category.