Wall Street advanced as the latest US housing numbers confirmed expectations that the industry will sustain its recovery, underpinning optimism for the overall strength of the American economy.
Residential real estate prices in 20 cities climbed 8.1 per cent in January from the same time last year, posting the largest 12-month increase since June 2006, according to S&P/Case-Shiller data.
And while a Commerce Department report showed that new home sales dropped 4.6 per cent to a 411,000 annualised pace in February, after a 431,000 rate in January, it was the best two-month performance since August and September 2008 and a 12 per cent gain from the same month last year.
Also good news was the 5.7 per cent jump in durable goods orders last month, shown in a separate Commerce Department report. The gain surpassed economists' expectations.
"The data continues to be pretty good out of the US and that's part of the reason stocks are still up here at 1,550, even though we had some bad news out of Europe over the past few days," Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, told Bloomberg. "Housing is a huge part of the economic recovery story and if housing prices rise, people feel better about their homes and generally more confident."