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U.S. stocks jump on robust housing data; Dow rises 0.48%

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Investing.com -

Investing.com - U.S. stocks rose on Tuesday after Wall Street applauded vigorous housing data coupled with solid consumer inflation figures.

At the close of U.S. trading, the Dow 30 rose 0.48%, the S&P 500 index rose 0.50%, while the NASDAQ Composite index rose 0.43%.

The Volatility S&P 500 index, which measures the outlook for market volatility, was down 0.97% at 12.20.

The U.S. Commerce Department reported earlier that the number of building permits issued in July jumped 8.1% to 1.052 million units from June's total of 973,000. Analysts expected building permits to rise by 2.5% to 1.0 million units in July, and the data sparked a rally on Wall Street.

The report also showed that U.S. housing starts soared by 15.7% last month to hit 1.093 million units from June's total of 945,000, far past expectations for an increase of 8.6% to 969,000 units.

A separate report showed that the U.S. consumer price index rose 0.1% last month from June and 2.0% on year, both figures meeting estimates.

Core consumer prices, which exclude food and energy costs, inched up by 0.1% last month, missing expectations for a 0.2% gain, though the year-on-year rate came in at 1.9%, which met expectations.

In company news, Home Depot Inc (NYSE:HD) shares soared after the home-improvement retailer unveiled earnings that beat expectations and also said it was raising its outlook.

Retailer TJX Companies Inc (NYSE:TJX) raised its 2014 earnings forecast as well, which added to Tuesday's gains.

Leading Dow Jones Industrial Average performers included Home Depot Inc (NYSE:HD), up 5.49%, UnitedHealth Group Incorporated (NYSE:UNH), up 1.35%, and American Express Company (NYSE:AXP), up 1.10%.

The Dow Jones Industrial Average's worst performers included AT&T Inc (NYSE:T), down 0.51%, Goldman Sachs Group Inc (NYSE:GS), down 0.36%, and Intel Corporation (NASDAQ:INTC), down 0.25%.

European indices, meanwhile, ended the higher.

After the close of European trade, the DJ Euro Stoxx 50 rose 0.63%, France's CAC 40 rose 0.56%, while Germany's DAX rose 0.96%. Meanwhile, in the U.K. the FTSE 100 rose 0.56%.

On Wednesday, the Federal Reserve is to publish the minutes of its latest policy meeting.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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