NEW YORK (TheStreet) -- Building on the morning's strong showing in U.S. new home sales for August, U.S. stocks rallied to reverse three days of declines. In the early afternoon, the markets strengthen their push, rising sharply and ending the trading day with solid gains.
The Dow Jones Industrial Average
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New home sales last month rose 18% to a seasonally adjusted 504,000 units, the highest level since May 2008. Economists estimated new homes sales would rise by 430,000 units last month.
Watch the video below for a closer look at how U.S. markets ended the trading day Wednesday:
KB Home (KBH) reported earlier Wednesday third-quarter earnings and revenue that missed analysts' estimates. The stock plunged 6.07%. Other housing stocks fell in sympathy with KB Home but trimmed losses after the release of the new home sales data.
In other corporate news headlines Wednesday, Citizens Financial Group (CFG) raised about $3 billion in its initial public offering that was priced at $21.50 a share, below the expected range. The stock rose to $23.08 at the market close.
Starbucks (SBUX) advanced 1.87% on Wednesday after the coffee giant said it will buy the remaining 60.5% share of Starbucks Japan for about $913.5 million.
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Starz (STRZA) jumped 5.58% after a Los Angeles Times report said that executives with Rupert Murdoch's 21st Century Fox (FOXA) and Starz met Tuesday to discuss a possible acquisition of the premium cable movie service, a deal that could expand Murdoch's reach into homes across the country.
Walmart (WMT) has partnered with prepaid cards issuer Green Dot to begin offering mobile checking accounts to customers over 18. Shares rose 1.96%.