* Tech shares advance after Monday's slide
* Broker views on tech, retail bellwethers lend support
* Alcoa drops after slashing dividend, spending
* Dow up 2.5 pct; S&P 500 up 3.2 pct; Nasdaq up 4.1 pct
* For up-to-the-minute market news, click []
(Adds context on Dow)
By Chuck Mikolajczak
NEW YORK, March 17 (Reuters) - U.S. stocks surged on
Tuesday as an unexpected leap in housing starts pushed Home
Depot and other retailers higher while bullish comments from a
broker on Cisco Systems helped technology shares rebound.
A nearly 4 percent rise in U.S. crude oil futures <CLc1>
boosted energy shares. Chevron <CVX.N> shares rose 3.8 percent
to $65.31 and ranked as the Dow's top gainer.
Retailer Home Depot's <HD.N> stock was another top Dow
advancer, rising 6.7 percent to $21.48, after data showed
housing starts rose 22.2 percent in February and a brokerage
raised its view on several retailers, citing an improved
outlook for the economy. For details see []
The Nasdaq reversed a 1.9 percent slide on Monday after
Goldman said investors should buy Cisco Systems <CSCO.O> on
the view a new server will increase the company's profits.
[]. The stock rose 4.5 percent to $16.14.
"Investors are starting to get a sense that things are
stabilizing. They're not getting any worse," said Terry
Morris, a portfolio manager with National Penn Investors Trust
Company in Reading, Pennsylvania.
The Dow Jones industrial average <> gained 178.73
points, or 2.48 percent, to 7,395.70. The Standard & Poor's
500 Index <.SPX> rose 24.23 points, or 3.21 percent, to
778.12. The Nasdaq Composite Index <> jumped 58.09
points, or 4.14 percent, to 1,462.11.
DOW UP ALMOST 5 PCT FOR MARCH
The blue-chip Dow average is now up 4.7 percent for the
month but remains down 15.7 percent for the year to date.
The S&P 500 is now up 14 percent from the bear-market
closing low on March 9, while the Dow is up 13 percent from
its bear-market closing low reached on the same date.
The Dow Jones home construction index <.DJUSHB> rose 6.3
percent after data showed housing starts jumped 22.2 percent
in February, the biggest percentage rise since January 1990,
and also the first increase since last April. []
Among home builders' stocks, top boosts included Pulte
Homes <PHM.N>, up 6.7 percent at $10.16, and Toll Brothers
<TOL.N>, up 5.9 percent at $17.06.
Optimism about the banking sector has helped the market
rebound from 12-year lows hit earlier this month. JPMorgan
Chase & Co<JPM.N> shares rose 8.9 percent to $25.14. An S&P
financial sector index <.GSPF> climbed 6.6 percent.
Even though the Obama administration has yet to detail how
toxic assets will be taken off balance sheets, optimism about
banks has risen in recent days as executives talked of a
strong start to 2009.
The S&P Retail index <.RLX> rose 5.4 percent.
Alcoa <AA.N> was the top drag on the Dow, falling 8.7
percent to $5.59 after it said it will slash its dividend,
issue stock and convertible notes worth $1.1 billion, and trim
its 2010 spending. []
Trading was moderate on the New York Stock Exchange, with
about 1.49 billion shares changing hands, matching last year's
estimated daily average, while on Nasdaq, about 2.12 billion
shares traded, below last year's daily average of 2.28
billion..
Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 4 to 1, while on the Nasdaq, about seven
stocks rose for every two that fell.
(Editing by Jan Paschal)
