With traders shrugging off some mid-day volatility, stocks saw considerable strength during trading on Tuesday. The upward move on the day extended the recovery from the steep drop that was seen last week.
Housing stocks turned in some of the market's best performances, benefiting from relatively upbeat new home sales data. The Philadelphia Housing Sector Index surged up by 3.8 percent, climbing further off last Thursday's nearly two-month closing low.
Within the housing sector, Toll Brothers (TOL), Lennar (LEN), and Meritage Homes (MTH) posted particularly strong gains.
Computer hardware stocks also moved sharply higher on the day, resulting in a 2.5 percent gain by the NYSE Arca Computer Hardware Index. Printer maker Lexmark (LXK) helped to lead the sector higher after reporting better than expected first quarter results.
Significant strength was also visible among airline stocks, as reflected by the 2.5 percent gain posted by the NYSE Arca Airline Index. Delta (DAL) and US Airways (LCC) posted notable gains after reporting their quarterly results.
Semiconductor, financial, networking, and healthcare provider stocks also saw considerable strength, moving higher along with most of the other major sectors.
Meanwhile, gold stocks bucked the uptrend by the broader markets, moving lower along with the price of the precious metal. With gold for June delivery sliding $12.40 to $1,408.80 an ounce, the NYSE Arca Gold Bugs Index fell by 2.3 percent.
The major averages ended the day firmly in positive territory, climbing back within striking distance of their recent highs. The Dow surged up 152.29 points or 1.1 percent to 14,719.46, the Nasdaq jumped 35.78 points or 1.1 percent to 3,269.33 and the S&P 500 shot up 16.28 points or 1 percent to 1,578.78.
by RTT Staff Writer
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