* Home prices, consumer data bolster recovery hopes
* Reappointment of Bernanke at Fed reassures investors
* Stocks up: Dow 0.56 pct, S&P 0.4 pct, Nasdaq 0.4 pct
(Updates to late afternoon, changes byline)
By Angela Moon
NEW YORK, Aug 25 (Reuters) - U.S. stocks advanced on
Tuesday as economic data and the reappointment of Federal
Reserve chief Ben Bernanke strengthened expectations for a
recovery and offset forecasts of federal budget red ink.
Major indexes briefly hit 2009 highs after
stronger-than-expected readings on consumers and housing, two
crucial components for an economic rebound.
But a drop in oil prices weighed on energy shares, and
Exxon Mobil <XOM.N> helped limit gains on the Dow industrials.
The Conference Board's index of consumer confidence in
August topped economists' forecast, while the S&P/Case-Shiller
home price index rose for a second consecutive month in June.
For details see [] [].
Home builders' shares rose, with Lennar Corp <LEN.N> up 4.6
percent at $15.24 and KB Home <KBH.N>, also up 4.6 percent at
$18.30.
"It suggests that there [] still more consumers and
investors yet to turn, or who are maybe increasingly turning,
positive, and that is helping to boost the markets," said Jeff
Kleintop, chief market strategist at LPL Financial in Boston.
The Dow Jones industrial average <> was up 52.91
points, or 0.56 percent, at 9,562.19. The Standard & Poor's 500
Index <.SPX> gained 4.11 points, or 0.40 percent, at 1,029.68.
The Nasdaq Composite Index <> rose 8.13 points, or 0.40
percent, at 2,026.11.
Pulte Homes Inc <PHM.N>, the biggest U.S. builder, rose
4.83 percent to $13.23 and the Dow Jones U.S. Home Construction
index <.DJUSHB> gained 3.99 percent.
The consumer confidence data and earnings news helped drive
retail stocks higher. Solid results from women's clothing
retailer Chico's FAS Inc <CHS.N>, rose 8.33 percent to $12.88,
and close-out retailer Big-Lots Inc <BIG.N>, gained 5.9 percent
to $25.44. [] []
Macy's Inc <M.N> also rose 4.8 percent to $16.05 and the
broader S&P Retail Index <.RLX> gained 2.13 percent.
Investors welcomed President Barack Obama's decision to
keep Bernanke as Fed chairman. [].
"Bernanke has put his policies in place and now (with the
reappointment), the market is reassured that he will unwind the
policies in a timely manner. It's good to know that someone
else won't come in and change everything," said Kim Caughey,
senior equity research analyst at Fort Pitt Capital Group in
Pittsburgh.
The positive news overshadowed government forecasts that
the U.S. national debt will nearly double over the next 10
years due to a slow recovery from the worst recession since the
1930s and higher spending on retirement and medical benefits.
[].
"The market is ignoring any kind of bad news. We are
concentrated on the positive side, and anything that is not
rosy is being shrugged off," said Alan B. Lancz, president of
Alan Lancz & Associates in Toledo.
"We have a lot of cash on the sideline and the market is
looking for excuses to buy instead of being objective about the
numbers."
The broad S&P 500 index briefly hit a 10-month intraday
high and remains on track for its sixth straight monthly gain.
On the downside, energy shares were dragging the market
with U.S. crude oil <CLc1> retreating nearly 3 percent to
$72.20 after a recent rally.
Exxon was off 0.4 percent at $70.99 while Murphy Oil Corp
<MUR.N> shed 2.1 percent at $59.40.
(Reporting by Angela Moon, Editing by Kenneth Barry)
