US stocks hit 18-month high
NEW YORK, USA – US stocks soared to a new 18-month high yesterday on better-than-expected home sales data.
The Dow Jones Industrial Average climbed 102.94 points (0.95 per cent) to 10,888.83, the highest daily close since September 26, 2008.
The tech-rich Nasdaq composite climbed 19.84 points (0.83 per cent) to 2,415.24, while the broad-market Standard & Poor’s 500 index added 8.36 points (0.72 per cent) to 1,174.17.
Markets focused on a report from the National Association of Realtors showing that existing-home sales fell for the third consecutive month in February, their lowest level in eight months.
Although the sales slipped 0.6 per cent to a seasonally adjusted annual rate of 5.02 million units, they were slightly better than the 5.0 million expected by most analysts.
“The major market indices continued to explore new heights today, with help from a batch of better-than-expected housing data,” said Andrea Kramer of Schaeffer’s Investment Research.
“While sales of previously owned homes are now at their lowest level in eight months, today’s data left the Street optimistic” ahead of a government monthly report Wednesday on new home sales, she said.
Existing home sales had reached 5.05 million units in January.
Analysts at Briefing.com said the limited drop in February sales might signal that “demand is again looking to break out” before the expiration of a first-time and existing homebuyers’ government tax credit in April.
