Stocks get a boost from home sales report, energy sector

The stock market rebounded Wednesday following a stronger-than-expected increase in pending home sales and a recovery in shares of energy companies.

The Dow Jones industrial average rose about 226 points, its third-biggest gain of 2010. Major indexes recovered the losses they suffered Tuesday shortly before the close, when the government announced criminal and civil investigations into the Gulf oil spill.

Energy stocks bounced back sharply after selling off the day before. And an upbeat report on home sales provided some hope on the nation's housing market. An increase in signed contracts for homes was due partly to a rush to meet a tax credit that expired in April.

"Anything that indicates more of a stabilization - and not rapid declines - in housing is probably a good thing," said Jason D. Pride, director of investment strategy at Glenmede in Pa.

The Dow rose 225.52, or 2.25 percent, to 10,249.54. The Standard & Poor's 500 index rose 27.67, or 2.58 percent, to 1,098.38, while the Nasdaq composite index climbed 58.74, or 2.64 percent, to 2,281.07.

- AP