Housing stocks were trading mostly higher on Tuesday after an analyst forecast modest improvement in the housing market next year and better home orders for homebuilders.

In his report, J.P. Morgan analyst Michael Rehaut said he sees the housing market stabilizing and improving modestly next year, coming off a 2010 that has seen home sales weaken in the months following the end of federal homebuyer tax credits in April.

Rehaut notes that, while demand for homes remains highly depressed, new home construction and home sales have largely stabilized over the past four months.

"We see this recent stability as critical in terms of our outlook for only modest downside for home prices, in contrast to 2006-2008, when consistently falling demand trends played a key role in declining home prices," Rehaut wrote.

The analyst anticipates home prices will trend from flat to down about 3 percent next year -- a view that he notes is more positive than other forecasts, some of which see home prices falling another 5 percent to 10 percent in 2011.

As a result of more stable price trends, builders should see minimal land-related charges and a modest increase in profit margins, the analyst said.

He also expects more builders to generate operating earnings per share next year.

A federal judge has ruled that a class-action lawsuit can be filed against Florida over the sale of personal driver's license information to a private firm.

The lawsuit claims the state, specifically the Department of Highway Safety and Motor Vehicles, improperly sold about 30 million personal records between 2005 and 2009 to Shadowsoft Inc., an Irving, Texas-based Internet marketer.

Shadowsoft then sold the information to other firms that target consumers.

An attorney representing the drivers told the South Florida Sun-Sentinel that the sales violate a federal statute banning the disclosure of personal information from driver's licenses.

Howard Bushman says addresses, dates of birth and possibly Social Security numbers were released.

The judge in Tallahassee ruled earlier this month that affected drivers can become members of the suit.

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Hyundai Motor Co. said it is voluntarily recalling 139,500 Sonata sedans in the U.S. because of a manufacturing defect that could cause drivers to lose steering control.

The recall affects 2011 models built between Dec. 11, 2009 and Sept. 10, the National Highway Traffic Safety Administration noted on its website Sunday. Some of the cars have steering column shafts with connections that may not have been tightened enough or were improperly assembled. As a result, the steering wheel could become separated from the column or a driver could lose the ability to properly steer the car.

The U.S. government had opened an investigation into possible steering problems in the vehicle in August. Hyundai, South Korea's top automaker, has said there have been no related injuries or crashes reported.

Owners of affected vehicles can go to their dealers for inspection. Dealers also will update power steering software. Owners may also call NHTSA at 888-327-4236 for more information.

The recall comes as automakers ramp up their focus on safety and quality control in the wake of Toyota Motor Corp.'s massive global recall last year over gas pedal and floor mat problems. In February, Hyundai announced a recall of about 47,000 Sonata midsize sedans, mostly sold in South Korea, to replace front door latches following a handful of customer complaints. The company said it had discovered a mechanical problem with the latches which, in rare instances, would not close properly.