HomeBuilders

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Stronger than expected home sales!

Stocks rise for 3rd day after jump in home sales
Stocks gain for 3rd straight day after report showing big jump in home sales


Stephen Bernard and Sara Lepro, AP Business Writer, On Tuesday December 22, 2009, 5:16 pm

NEW YORK (AP) -- Stocks pushed higher for a third straight day after a surprisingly strong report on housing provided the latest evidence that the economy is picking up speed.

All major indexes gained less than 1 percent Tuesday, with the Standard & Poor's 500 index and the Nasdaq composite index closing at new highs for the year. The Dow Jones industrial average rose 50 points, bringing its three-day point gain to 156.

Stocks got off to a positive start after a report from the National Association of Realtors said home resales jumped 7.4 percent in November. That was much more than the 2.5 percent increase analysts expected. The government's tax breaks have spurred sales to their highest level in nearly three years.

The report added to a recent string of encouraging news on the economy, including upbeat earnings and forecasts from technology companies and more corporate dealmaking.