By Chris Dieterich and Patrick McGee
NEW YORK--The Dow Jones Industrial Average staged a triple-digit
advance after a pair of strong readings from the housing market and
as investors watched lawmakers for signs of a deal on the fiscal
cliff.
The Dow climbed 146 points, or 1.2%, to 12734 in Monday-morning
trading. On Friday, the Dow rose 46 points to snap a four-session
losing streak, although the blue-chip benchmark has lost ground for
four-straight weeks.
The Standard & Poor's 500-stock index gained 20 points, or
1.4%, to 1379 and the Nasdaq Composite Index jumped 40 points, or
1.4%, to 2893.
Investors said that the market remains tethered to news reports
about potential progress on resolving the combination of tax
increases and spending cuts set to go into effect at the end of the
year.
President Barack Obama, in Bangkok for a three-nation trip on
Sunday, said he was "confident" the fiscal situation could be dealt
with by lawmakers.
"Constructive comments over the weekend are key for the market
to feel like, in this postelection environment with all the intense
partisan politics, the two parties will be able to get together on
this issue," said Jeff Morris, head of U.S. equities at Standard
Life Investments at Boston.
"After earnings season, it does seem that the market will be
dictated by [fiscal cliff issues] between now and the end of the
year," Mr. Morris said.
In U.S. economic news, sales of previously-owned homes grew last
month, beating expectations. Separately, the National Association
of Home Builders said Monday that its home builders' confidence
index rose to its highest level in six-and-a-half years.
European markets rallied on speculation of U.S. fiscal progress,
with the Stoxx Europe 600 climbing 1.8%. The boost in confidence
comes a day ahead of a euro-zone finance ministers gathering to
discuss Greece.
Asian markets were solidly higher, led by a 1.4% gain in Japan's
Nikkei Stock Average. The index has climbed for four straight
trading days. China's Shanghai Composite rose 0.1%.
Front-month crude-oil futures rose 2.2% to $88.84 a barrel,
while November gold futures moved 0.9% higher to $1730 a troy
ounce. The dollar weakened against the euro and the yen. Yields on
benchmark 10-year Treasury bonds fell to 1.621%.
In corporate news, Intel rose 0.4% after Chief Executive Paul
Otellini disclosed plans to retire in May after nearly 40 years
with the chip maker.
Lowe's shot up 6.4% after reporting third-quarter earnings that
handily topped estimates.
Tyson Foods advanced 8.1% as meat processor's chicken business
returned to profitability in its most recent quarter, offsetting
weakness in its beef and pork segments.
Wright Medical Group fell 2.5% after agreeing to acquire fellow
medical-device maker BioMimetic Therapeutics, which jumped 68%, for
about $190 million in cash and stock. Orthopedic-medical-device
maker Wright agreed to pay roughly $6.47 a share for BioMimetic, a
56% premium to BioMimetic's Friday close. Shares surged 80%.
Write Chris Dieterich at christopher.dieterich@dowjones.com and
to Patrick McGee at patrick.mcgee@dowjones.com