U.S. Home Sales Rise, Stocks Follow
Data points to stabilizing housing market; rising dollar limits gain in energy, natural resources.
Ellis Mnyandu, 12.22.09, 12:15 PM EST
www.forbes.com
NEW YORK (Reuters) - U.S. stocks rose Tuesday, pushing the benchmark S&P 500 up briefly to a 14-month high, as data on existing home sales pointed to more stabilization in housing, bolstering optimism about the economic recovery and prospects for profits.
Stocks supporting the market's advance included big manufacturers like Boeing ( BA - news - people ) Co, up 1.5 percent at $55.09, and technology bellwethers, with International Business Machines Corp ( IBM - news - people ) up 0.8 percent at $129.67 after the blue-chip company scored a 10-year outsourcing deal valued at $83 million.
The Dow Jones U.S. home construction index jumped nearly 3 percent following a report that showed sales of previously owned homes rose 7.4 percent in November, which was much stronger than expected.
