Stocks up about 1% following housing report

NEW YORK -- Stocks rallied following the federal government’s report that home builders requested the most permits since September 2008.

Major U.S. stock indexes were up about 1% in early trading on Wall Street.

The Dow Jones industrial average was up 110 points, or 0.9%, to 12,852 shortly after the opening bell.

The broader Standard & Poor’s 500 index gained 13 points, or 1%, to 1,358. The Nasdaq was up 33 points, or 1.1%, to 2,928.

The market rally came as the Group of 20 world leaders met in Mexico to discuss the protracted Eurozone crisis, two days after Greek voters chose a pro-bailout government that eased fears the country would be forced out of the euro common currency.


Spain’s borrowing costs declined as its government met its target at a bond sale, Bloomberg News reported. Spanish bond yields surpassed a record 7% Monday.

Meanwhile, the Federal Reserve was set begin a two-day meeting to discuss possible monetary stimulus to prop up the U.S. economy.


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