Stocks extend rally in morning trading

NEW YORK (AP) — Stocks extended a rally in morning trading today ahead of reports that will show whether the economic recovery is picking up its pace.

Automakers such as General Motors Co., Ford Motor Co. and Toyota Motor Corp. will report December and year-end sales figures throughout the day. Analysts are forecasting a modest increase that could show that customers bought more vehicles in 2010 than in 2009, when sales plummeted to their lowest levels since 1982.

Separately, the Commerce Department will issue its report on November factory orders. Analysts expect that orders dipped 0.1 percent, after falling 0.9 percent in October. Much of the decline in October reflected a drop in demand for aircraft.

In morning trading, the Dow Jones industrial average rose 3 points, or 0.1 percent, to 11,672. The Standard and Poor’s 500-stock index gained 2, or 0.1 percent, to 1,272. The Nasdaq composite rose 4, or 0.2 percent, to 2,695.