Dow Average Rises to Five-Year High Amid Housing Report

Dow Average Rises to Five-Year High Amid Housing Report

Bloomberg, (28/2) U.S. stocks advanced, sending the Dow Jones Industrial Average to a five-year high, after better- than-estimated housing data bolstered economic optimism and European shares rebounded amid gains in Italian bonds. The Standard & Poor’s 500 Index rose 1.3 percent to 1,516.03 at 4 p.m. in New York. The Dow added 176.32 points, or 1.3 percent, to 14,076.45. The 30-stock gauge is less than 1 percent away from its October 2007 record. Equities rose as contracts to purchase previously owned U.S. homes climbed more than forecast in January, a sign the industry will keep strengthening this year. Orders for U.S. durable goods excluding transportation equipment climbed in January by the most in a year, indicating business investment is holding up. Federal Reserve Chairman Ben S. Bernanke said the central bank has the “tools” necessary to scale back record stimulus and avert a rise in inflation expectations, in congressional testimony that was identical to his remarks yesterday to the Senate Banking Committee. American stocks also joined a rally in Europe as Italy sold 6.5 billion euros ($8.5 billion) of five- and 10-year bonds in its first auction following inconclusive election results that pushed yields to a four-month high yesterday. http://www.bloomberg.com/news/2013-02-27/u-s-stock-futures-fluctuate-before-home-sales-data.html