Stocks pushed higher for a third straight day after a surprisingly strong report on housing provided the latest evidence that the US economy is picking up speed.
All major indexes gained less than one per cent Tuesday, with the Standard & Poor's 500 index and the Nasdaq composite index closing at new highs for the year. The Dow
Jones industrial average rose 50 points, bringing its three-day point gain to 156.
Stocks got off to a positive start after a report from the National Association of Realtors said home resales jumped 7.4% in November. That was much more than the 2.5% increase analysts expected. The government's tax breaks have spurred sales to their highest level in nearly three years.
The report added to a recent string of encouraging news on the economy, including upbeat earnings and forecasts from technology companies and more corporate deal making.
"It's just another rung in the recovery ladder, "said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group.
There were other signs that investors were feeling more confident. Bond prices fell further, pushing yields sharply higher. The gap between yields on short- and long-term bonds has widened to record levels, indicating that investors see the economy growing.
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