by Marc Bastow | June 25, 2013 4:36 pm
U.S. stocks bounced back broadly Tuesday as a series of reports showed signs of strength in the economy, helping to take investors eyes off China’s credit problems.
The S&P 500 led the major American indices, finishing ahead 0.95% to 1588.03, while the Nasdaq moved ahead 0.82% to 3347.89. The Dow Jones Industrial Average saw only three of its components lose ground on the way to a gain of 0.69%, closing at 14760.31.
The S&P/Case-Shiller home price index was up 12.1% in April, the biggest annual jump in prices in seven years. The 2.5% month-over-month jump from March was the biggest one-month rise in the 12-year history of the index.
Meanwhile, the Commerce Department reported new home sales rose 2% in May, ahead of estimates, and the Census Bureau reported new orders for durable goods in May rose 3.6%, also ahead of estimates. Finally, the Conference Board’s index of consumer confidence rose to 81.4 in June, well ahead of the 74.3 reported in May.
The good housing news didn’t stop at the single-stock level. Lennar (LEN) reported both top- and bottom-line results that topped forecasts, and LEN stock surged 4% before settling in with a fractional gain. However, sectormates PulteGroup (PHM, +3.9%), Beazer Homes (BZH, +1.9%) and Hovnanian (HOV, +1.3%) all saw solid upside moves.
Carnival (CCL) announced that earnings fell 55% to 9 cents per share in the second quarter, but shares gained more than 5% as earnings were better than expected. Carnival also announced CEO and Chairman Micky Arison is moving on, to be replaced by board member Arnold Donald.
Barnes & Noble (BKS) shares took a 17% nosedive after announcing that revenues and earnings fell in its most recent quarter, and that it’s looking over previous financial statements which may result in restatements. BKS also will stop making its Nook in-house, instead partnering with a third party to manufacture the device.
Finally, shares of drugstore chain Walgreen (WAG) lost nearly 6% after missing earnings and revenue forecasts.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.
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