* New home sales unchanged in August
* Durable goods orders fall but business spending rebounds
* Stocks up: Dow 1.7 pct, S&P 1.8 pct, Nasdaq 1.7 pct
* For up-to-the-minute market news see []
(Updates to open, adds new home sales data)
By Angela Moon
NEW YORK, Sept 24 (Reuters) - U.S. stock indexes rose
almost 2 percent on Friday as a rebound in business spending
and steady home sales in August fueled investor optimism and
provided firmer ground for a sustainable rally.
The data add to a recent line of positive economic
indicators that reflect improving parts of the U.S. economy.
The S&P 500 <.SPX> is up 9 percent from a month ago.
Despite data showing new U.S. single-family home sales were
flat in August, investors poured money in stocks, suggesting
they may have finally come on board with the move in equities.
The S&P 500 had crossed above technical lines several times in
the past few days but had been unable to sustain the gains.
"Everyone knows that the housing market is weak and is
going to remain weak. We're still in a hangover from the tax
credit expiring. So this isn't a good number, but the market
isn't selling off on it," said Michael O'Rourke, chief market
strategist at BTIG LLC in New York.
Data on Friday showed that overall, new orders for
long-lasting U.S. manufactured goods fell more than expected in
August to post their largest decline in a year as bookings for
aircraft and motor vehicles tumbled. But excluding
transportation, orders rose more-than-expected, suggesting a
healthy rebound. [] []
The Dow Jones industrial average <> was up 175.43
points, or 1.65 percent, at 10,837.85. The Standard & Poor's
500 Index <.SPX> was up 19.79 points, or 1.76 percent, at
1,144.62. The Nasdaq Composite Index <> was up 37.88
points, or 1.63 percent, at 2,364.96.
Nike Corp <NKE.N> rose 4.2 percent to $80.91 after the
company reported stronger-than-expected orders and profit late
on Thursday.
Advanced Micro Devices Inc <AMD.N> also rose 4 percent to
$6.65 after the company updated its third-quarter outlook.
Boosting investor sentiment was the share offering of
Brazilian state oil company, Petrobras. The sale of nearly $70
billion in shares surpassed expectations, erasing concerns that
stocks were less attractive assets. For details, see
[]
On the Nasdaq, Apple Inc <AAPL.O> shares rose 1 percent to
$291.84 and options trading was also brisk on the stock. Apple
trades as of Thursday's close were double the stock's daily
trading volume, according to Jocelynn Drake at Schaeffer's
Investment Research.
U.S. gold futures surged to an all-time high at $1,300 an
ounce in European trading on Friday as investors turned to the
precious metal as a refuge from volatility on the currency
markets.
(Editing by Padraic Cassidy)
