NEW YORK: US stocks roared higher Monday, helped by strong housing data and a weak dollar that boosted commodities and overall sentiment for investor risk. The Dow Jones Industrial Average jumped 132.79 points (1.29 per cent) to 10,450.95 to the highest close since October 2008, rebounding from a three-session losing streak. The tech-heavy Nasdaq rose 29.97 points (1.40 per cent) to 2,176.01 and the broad-market Standard and Poor's 500 index added 14.86 points (1.36 per cent) to 1,106.24, reclaiming its perch atop the 1,100 level. Both indexes ended lower last week. Stocks surged from the opening bell as the dollar weakened with expectations that interest rates would remain at near zero low levels. The rise was further fueled by a home sales jump. A rush to cash in on tax incentives helped propel sales of existing homes by 10.1 per cent in October, giving momentum to the ailing sector, the National Association of Realtors said. Sales of existing single family homes and apartments rose to a seasonally adjusted annual pace of 6.10 million units, well ahead of market expectations of 5.7 million.
The data showed a small downward revision to September sales figures, but the October level was 23.8 per cent higher than a year ago, when the financial crisis had deepened. "The stabilization of the housing market is one factor that could get the US consumer back on its feet sooner than expected," analysts at Charles Schwab and Co said in a report. In the past week, the market was chilled by data showing a 10.6 per cent slide in October housing starts, along with a drop of 4 per cent in permits to build new homes, a leading indicator of the sector. Weakness in the US dollar also prompted a run on commodities and equities heading into the open, with traders reacting to exit strategy comments at the weekend from a Federal Reserve official. The dollar slid against the euro on Monday on concerns that the Federal Reserve may keep emergency stimulus measures in place for a while longer, helping push gold prices to a record high level, analysts said. -- AFP
