NEW YORK - Stocks rose, pushing the Standard & Poor's 500 index back into record territory, as investors assessed earnings reports from retailers and other companies. Home builders gained after sales of new homes jumped in January at fastest pace in more than five years.
The S&P 500 rose five points to
1,850 as of 1:25 p.m. ET. The Dow Jones industrial average gained 45 points to
16,225. The Nasdaq composite rose 23 points to 4,311.
Several home builder stocks rose sharply
after the government reported that U.S. sales of new homes rebounded last
month. That's a hopeful signs after a slowdown in the housing market last year
caused by higher interest rates. PulteGroup rose 70 cents, or 3.4 percent, to
$21.38 and Lennar rose $1.58, or 3.7 percent, to $43.84.
Lowe's climbed $2.65, or 5.5 percent,
to $50.78. The company said its net income rose 6 percent in the most recent quarter as the home-improvement retailer continued to benefit from a recovery
in the housing market.
Barnes & Noble rose 73 cents, or
4.3 percent, to $18.50 after reporting a third-quarter profit. Cost cuts at the
company's Nook e-reader unit and elsewhere helped offset declining revenue.
Barnes & Noble has been trying to turn itself around as competition from
discount stores and online retailers gets tougher and consumers shift to buying
Abercrombie & Fitch jumped $3.38,
or 9.4 percent, to $39.39 after posting earnings that exceeded the expectations
of Wall Street analysts. Target also rose after reporting its earnings. The
company's stock surged $4.30, or 7.6 percent, to $60.81, after saying that
sales its sales have been recovering since January.
First Solar slumped Wednesday after
reporting earnings that fell short of financial analysts' expectations. The
company's stock fell $6.73, or 11.6 percent, to $51.45.
The S&P 500 index has climbed
above its record closing high of 1,848.38 during the last two days, only to
fall below that level before the market closed. The level is starting to turn
into a psychological hurdle for traders and investors. The index needs to close
decisively above 1,850 before it can climb further, said JJ Kinahan, a
strategist at TD Ameritrade.
"That's the level that everyone
is just watching to see if we can stay above it and close above it."
The yield on the 10-year Treasury note
was little changed from Tuesday at 2.70 percent. The price of oil rose 88
cents, or 0.8 percent, to $102.71 a barrel. Gold fell $16.50, or 1.2 percent to
$1,326.40 an ounce.