U.S. stocks rose as a better-than- estimated jump in pending home sales helped the market recover from an early drop after the Group of 20 nations rebuffed calls from the euro area for more bailout funding.
The S&P 500 Index (SPX) gained 0.2 percent to 1,367.78 at 4 p.m. New York time, according to preliminary closing data. The index briefly rose above its 2011 intraday high of 1,370.58.
“The market has been very discomforting for the bears,” Michael Holland, chairman and founder of New York-based Holland & Co., said in a telephone interview. His firm oversees more than $4 billion.
“When people look for the market to correct a major move like the one we’ve had, it doesn’t correct very much.
Today was a great example of that. The economy is healing. That’s causing the market to have some resilience when people are calling for corrections.”
U.S. equities erased losses after a report showed that the number of Americans signing contracts to buy previously owned homes rose more than forecast in January, indicating the industry that triggered the last recession is improving.