US Federal Reserve chief Ben Bernanke and the latest economic data provided the right mix for investors - further stimulus to underpin an accelerating recovery.
Reports on US consumer confidence and the housing market were better than anticipated. The Conference Board's consumer sentiment index rose to 69.6 this month, from a downwardly revised 58.4 in January, while new home sales jumped 15.6 per cent to a 437,000 annual pace.
"Housing is now kicking into higher gear," Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania, told Bloomberg News. "The next few months are still going to be a struggle for households as fuel prices are elevated, but the improvement in confidence reduces the risk of the worst-case scenario."
Both Home Depot and Macy's provided evidence of strength in their latest earnings and outlook. Shares of Home Depot were last up 5.7 per cent, while those of Macy's were last 3.4 per cent stronger.
Bernanke's testimony to the Senate Banking Committee in Washington today allayed concern raised last week by the release of the latest Fed meeting minutes that central bank officials might ease or end their record stimulus measures sooner than previously thought.
