Market Snapshot November 23, 2009, 4:25PM EST

Stocks Gain on Home-Sales Data

A surprising 10.1% increase in U.S. existing home sales in October lifted equities Monday. Gold futures touched another record high

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U.S. stocks closed solidly higher Monday as a stronger-than-expected October home sales report helped to reassure investors' faith in the economic recovery.

Investors from the outset of trading demonstrated hope that government spending and low interest rates would propel the economy forward in the months ahead. Commodities-related issues got an additional boost from a weaker dollar. Weakness in the greenback came amid calls for central banks to continue stimulus plans well into the new year.

Traders were also encouraged by a report that October existing home sales rose 10.1% to a 5.54 million unit annual rate.

On Monday, the 30-stock Dow Jones industrial average finished higher by 132.79 points, or 1.29%, at 10,450.95. The broad Standard & Poor's 500-stock index was up 14.86 points, or 1.36%, at 1,106.24. The tech-heavy Nasdaq composite index gained 29.97 points, or 1.40%, to 2,176.01.

On the New York Stock Exchange, 23 stocks were higher in price for every seven that declined. Breadth on the Nasdaq was 19-8 positive. Trading volume was light.

Oil & gas, basic materials, and utilities stocks were among the market leaders.

Campbell Soup (CPB) reported first-quarter sales of $2.2 billion and earnings of 87 cents per share, above Wall Street consensus estimates, and forecast sales growth of 4-5% in coming fiscal years.

Hewlett-Packard (HPQ) will wrap up the reporting season for the Dow after the close Monday.

Treasuries edged higher in choppy trading after an auction of $44 billion in two-year notes Monday afternoon. The 10-year note was lower at 99-29/32 for a yield of 3.392%, while the 30-year bond was lower at 101-02/32 for a yield of 4.316%.

The U.S. dollar index was off 0.60 to 75.05 even though October existing home sales unexpectedly soared 10.1%. The buck was being hammered by comments from St. Louis Fed President Bullard, who said the the FOMC should maintain its stimulus plans through March at least, and should come off zero rates only when economy recovering strongly.

December gold futures were up $17.70 to $1,164.50 per ounce, down from a record $1.174.00 earlier in the session.

December West Texas Intermediate crude oil futures were higher.

Stocks in Europe were sharply higher Monday, with the FTSE 100 index in London rising 1.98%, the DAX index in Frankfurt up 2.44%, and the CAC 40 index in Paris climbing 2.25%.

Tokyo stocks were closed for a holiday. Hong Kong's Hang Seng index rose 1.41%, while Shanghai's benchmark index gained 0.92%.

In economic news Monday, U.S. existing home sales climbed 10.1% to a 6.10 million-unit annual pace in October, from a revised 5.54 million rate in September. Single family sales rose 9.7% while condo/coop sales increased 13.2%. The months' supply of unsold homes fell to 7.0 from 8.0 in September (revised from 7.8 months). The median sales price fell to $173,100 from $176,000 (revised from $174,900). That's down 7.1% year-over-year as price declines slow from over 8% previously, notes Action Economics.

Tuesday's third-quarter U.S. gross domestic product (GDP) report is expected to be revised lower.