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Stocks jump after home prices, confidence surge

Traders work on the floor of the New

Traders work on the floor of the New York Stock Exchange last week. The Dow Jones industrial average jumped 106.29 points to close at another record, 15,409.39, on Tuesday. (May 23, 2013) Credit: Getty Images

A rally that brought the stock market to record highs this year came back to life after U.S. home prices rose the most in seven years and consumer confidence reached a five-year high. As stock prices rose investors sold bonds, sending interest rates higher.

The Dow Jones industrial average rose 106 points to close at another record Tuesday, bouncing back from a loss the week before. The Standard & Poor's 500 index also gained. The S&P is on track for its seventh straight monthly gain, the longest winning streak since 2009.

"They say the stock market tends to lead the economy. Now we're starting to see the improvement on the economic front, so there's some justification for this rally," said Ryan Detrick, a senior technical strategist at Schaeffer's investment research.

The yield on the 10-year Treasury note jumped to 2.17 percent, its highest level since April 2012, as investors moved money out of safe assets and into riskier ones like stocks. That's a big jump from Friday's level of 2.01 percent. Markets were closed Monday for Memorial Day.

Tuesday the Dow rose 106.29 points to close at 15,409.39. The S&P 500 index rose 0.63 percent, to 1,660.06. The Nasdaq composite index climbed 0.86 percent, to 3,488.89.

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