NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday, with the Dow, Nasdaq and S&P 500 ending at new 18-month highs following the release of a better-than-expected existing home sales report that suggests a slow economic rebound.
The Dow Jones industrial average (INDU) rose 103 points, or 1%, ending at 10,888.83, the highest close since 11,143.13 on Sept. 26, 2008.
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The S&P 500 index (SPX) gained eight points, or 0.7%, and ended at 1,174.17, its highest close since 1,213.09 on Sept. 26, 2008.
The Nasdaq composite (COMP) rose 20 points, or 0.8%, ending at 2,415.24, its highest close since 2,416.98 on Aug. 18, 2008.
Stocks initially struggled out of the gate Tuesday but turned higher following the release of the housing report, which showed existing home sales fell in February from January levels but still topped estimates.
The report was consistent with other recent readings that show the economy is improving, but at a slow pace. Investors are looking for signs of increased growth in the aftermath of a rally that pushed the Dow 65% off its lows of a year ago to 2010 highs hit on Monday. In that same period, the S&P 500 has gained 72% and the Nasdaq has gained 89%.
Stocks have steadily drifted higher over the last month or so after sliding between mid-January and early February. The Dow has now gained in 9 of the last 10 sessions through Tuesday's close, while the S&P 500 and Nasdaq composite have gained in 8 of the last 10 sessions.
"The recent uptick has been more a function of less bad news rather than a lot of good news," said Dean Barber, president at Barber Financial Group.
He said that unemployment, the weakness in housing and the possible spread of Greece's debt problems remain worries for investors, but they've been pushed aside for the time being.
http://money.cnn.com/2010/03/23/markets/markets_newyork/index.htm?hpt=T2
Stock Market & Housing Report
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