U.S. markets bounced back Tuesday posting solid gains. The Dow
Jones industrial average ended
Tuesday up more than 101 points, or 0.69%;the S&P 500 closed up 15 points, or 0.95%; and the Nasdaq closed up 27 points, or 0.82%.
After several days of heavy market losses, investors
reacted favorably to a number of positive economic reports, with strong housing
news leading the way. In April, the S&P/Case-Shiller home price index was
up 12.1% versus a year ago for the top 20 housing markets in the U.S. This is
the largest jump in annual prices in seven years and is a 2.5% increase from
March, also the largest one-month rise in the 12-year history of the index. New
home sales also topped estimates, growing 2% in May to a seasonally-adjusted
rate of 476,000 units, according to the Commerce Department.
In more good news for the housing sector, homebuilder Lennar Corp. (LEN) reported sales and earnings that beat
forecast reports. CEO Stuart Miller said Lennar's results "point to a
solid housing recovery."
Consumer confidence has also been bolstered by an improved
job market. The Conference Board Consumer Confidence Index shows consumers have
been encouraged by improvement in the job market. But the index does not
reflect the recent market turmoil, which could put a damper on consumers' moods
in July.