This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Sing as U.S. Economic Data Strengthen

NEW YORK (TheStreet) -- Major U.S. stock markets closed near session highs Tuesday as better-than-expected new home sales and encouraging data on durable-goods orders bolstered the outlook for recovery in the world's largest economy.

The S&P 500 rose 0.95% to 1,588.03 while the Dow Jones Industrial Average advanced 0.69% to 14,760.31. The Nasdaq tacked on 0.82% to 3,347.89.

Stocks posted a strong trading session Tuesday, a day after tumbling on mixed messages from Federal Reserve presidents about when the central bank should taper its monetary stimulus programs. The benchmark 10-year Treasury note on Tuesday fell 17/32, boosting the yield to 2.606%. Treasury yields have witnessed a rapid increase since May, while stocks have struggled to push into positive territory.

"There's a fundamental problem here that the markets are wrestling with, and I think that's why you're seeing the divergence for today at least in the equity markets and the interest rates, we don't actually have price discovery in the interest rate market," said Brad McMillan, chief investment officer for Commonwealth Financial. "Everyone is struggling with 'well, OK, what should prices really be?'"

New home sales rose 2.1% to a seasonally adjusted annual rate of 476,000 in May, after an upwardly-revised April annual rate of 466,000, according to data compiled by the Census Bureau. The report exceeded the average economist expectation of an increase to 462,000.

Homebuilder stocks were further aided by homebuilder Lennar (LEN) which posted earnings that exceeded forecasts. Lennar added 0.69% to $35.23 as the Miami-based builder and financier beat fiscal second-quarter earnings estimates by ten cents and exceeded sales expectations. PulteGroup (PHM), another homebuilder, gained 3.9% to $19.02.

The S&P/Case-Shiller 20-city home price index showed a stronger than expected year-over-year gain of 12.1% in April after an increase of 10.9% in March, driven by a broad-based recovery in home prices across the nation. A rise of 10.6% for April was expected. On a month-to-month basis, the composite showed an increase of 2.5%, the highest monthly gain in the history of S&P/Case-Shiller Home Price Indices.

The Federal Housing Finance Agency House Price Index also showed a gain, up 0.7% in April after an upwardly-revised increase of 1.5% in March.

The Census Bureau reported that durable-goods orders increased 3.6% in May after rising by an upwardly-revised 3.6% in April. Durable-goods orders excluding the transportation component rose 0.7% after gaining by an upwardly-revised 1.7%. Economists, on average, were expecting a durable-goods orders increase of 3% in May and predicted an unchanged core orders figure.

Meanwhile the Conference Board Consumer Confidence Index, which had improved in May, increased again in June. The Index now stands at 81.4, up from 74.3 in May. Economists were expecting a decline to 75.4.

In company news, Seattle Genetics (SGEN) slid 0.67% to $29.70 after the company confirmed Tuesday that a small clinical study treating elderly Hodgkin lymphoma patients with a combination of Seattle Genetics' Adcetris and chemotherapy has been stopped temporarily due to reports of pancreatitis, a dangerous swelling of the pancreas.

The Men's Wearhouse (MW) surged 5.7% to $37.13 after the company finally provided a list of reasons behind the decision to terminate its founder and chairman George Zimmer, including that he had "advocated for significant changes that would enable him to regain control."

Written by Andrea Tse and Joe Deaux in New York

>To contact the writer of this article, click here: Andrea Tse.>.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs