NEW YORK -- U.S. stocks made their biggest gain since March on Tuesday as shares of technology companies Apple and Microsoft soared. Homebuilder shares also climbed after the government said sales of new homes reached an eight-year high last month. That was a sign the housing market and the broader economy are still in pretty good shape.
The Dow Jones industrial average rose 213.12 points, or 1.2 percent, to 17,706.05. The Standard & Poor's 500 index picked up 28.02 points, or 1.4 percent, to 2,076.06. The Nasdaq composite index surged 95.27 points, or 2 percent, to 4,861.06.
Stocks opened higher following hefty gains in Europe. Tech stocks made their biggest gain in almost three months, which erased their losses from earlier this year. Banks rose as interest rates continued to inch higher, which lets banks make more money on lending. Stocks have alternated between gains and losses in recent days after a four-week-long string of losses.
"A little bit of good data has reminded people that things are actually OK," said David Lefkowitz, senior equity strategist at UBS Wealth Management. "It's almost like a rubber band. When things get too stretched they snap back."
Tech stocks led the market higher with their biggest jump since March 1. Apple picked up $1.47, or 1.5 percent, to $97.90 and Alphabet, Google's parent company, added $15.78, or 2.2 percent, to $733.03. Microsoft rose $1.56, or 3.1 percent, to $51.59.
Home-building stocks jumped after the Commerce Department said sales of new homes reached their highest level since January 2008. Sales of both newly built and previously owned homes grew as job gains and low mortgage rates encourage Americans to keep buying homes. Toll Brothers also reported better first-quarter results than analysts expected, and the company raised its annual projections for home prices and sales. The stock gained $2.36, or 8.7 percent, to $29.46.
Beazer Homes USA added 66 cents, or 9.2 percent, to $7.86 and PulteGroup rose 91 cents, or 5.1 percent, to $18.73.
Bond prices fell. The yield on the 10-year U.S. Treasury note rose to 1.86 percent from 1.84 percent. When interest rates go up, as they have been doing recently, banks can make more money from lending. JPMorgan Chase climbed $1.08, or 1.7 percent, to $64.54 and Bank of America gained 21 cents, or 1.6 percent, to $14.68.
Streaming video company Netflix jumped after it said it struck a deal with Disney. Starting in September, Netflix will have exclusive U.S. rights to new movies from Disney, Marvel, Lucasfilm and Pixar. Netflix stock jumped $3, or 3.2 percent, to $97.89.
Fertilizer-maker CF Industries ended a deal to buy OCI's distribution networks for about $8 billion. CF planned to reincorporate in the U.K. as part of the deal, which would have reduced its tax bill, but the company said new Treasury Department rules made the combination less appealing. CF Industries will pay OCI $150 million for calling off the deal. CF Industries shed $2.24, or 7.5 percent, to $27.61.
Benchmark U.S. crude rose 54 cents, or 1.1 percent, to $48.62 a barrel in New York. Brent crude, used to price international oils, rose 26 cents, or 0.5 percent, to $48.61 a barrel in London.
Business on 05/25/2016