Stocks climb on housing, production reports

Investors regained some enthusiasm for stocks yesterday, sending prices sharply higher after reports showed a slight improvement in the housing market and a big jump in industrial production.

Investors were also encouraged by earnings from The Home Depot Inc. and Wal-Mart Stores Inc. that were better than expected. The Home Depot saw net income rise 7 percent. The Dow Jones industrial average rose 103 points. All the major stock indexes were up more than 1 percent.

It's too early to say whether stocks have recovered from a recent slump that sent the Dow falling almost 400 points over four days or whether yesterday's advance was an upward blip. Many traders are on vacation, or avoiding any stock moves because of the uncertainty of the economy. That means low trading volume and price moves that can easily be exaggerated.

But yesterday's reports provided a slice of optimism and some reassurance that the economy continues to expand, although at a slower pace than early this year.

The Dow rose 103.84, or 1 percent, to 10,405.85. The Standard & Poor's 500 index rose 13.16, or 1.2 percent, to 1,092.54, while the Nasdaq composite index rose 27.57, or 1.3 percent, to 2,209.44. - AP