Sector Snap: Construction Materials Suppliers Gain

NEW YORK (AP) — Shares of construction materials suppliers rose Tuesday after news that April's pending home sales jumped in the metric's third-consecutive monthly gain and its biggest advance in nearly eight years.

That news follows better-than-anticipated data on construction spending Monday which sent the Dow and other major indexes up more than 2 percent.

The National Association of Realtors said its seasonally adjusted index of sales contracts signed in April rose 6.7 percent to 90.3. Economists surveyed by Thomson Reuters expected the index would edge up to 85 from a reading of 84.6 in March. It was the biggest monthly jump since October 2001.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales. The index was 3.2 percent above last year's levels and has risen for three straight months after hitting a record low in January.

Capital Economics analyst Paul Dales said the latest pending home sale figures adds to "evidence that housing activity is finding a floor," albeit at "staggeringly low levels."

While the broad S&P 500 index rose about half a percentage point in morning trading, the S&P Construction Materials index was up more than 3 percent.

Beacon Roofing Supply Inc. gained 67 cents, or 4.5 percent, to $15.68 and Vulcan Materials Co. added 92 cents to $48.68.