March 23, 2010: 2:05 PM ET NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday, with the Dow, Nasdaq and S&P 500 hitting new 18-month highs following the release of a better-than-expected existing home sales report.
The Dow Jones industrial average (INDU) rose 47 points, or 0.4%, with over two hours left in the session. The S&P 500 index (SPX) gained 2 points or 0.2%. The Nasdaq composite (COMP) rose 6 points or
Stocks initially struggled out of the gate Tuesday but turned higher following the release of the housing report, which showed existing home sales fell in February from January levels, but still topped estimates.
The report was consistent with other recent readings that show the economy is improving, but at a slow pace. Investors are looking for signs of increased growth in the aftermath of a rally that pushed the Dow 65% off its lows of a year ago to 2010 highs hit on Monday. In that same period, the S&P 500 has gained 72% and the Nasdaq has gained 89%.
Stocks have steadily drifted higher over the last month or so after sliding between mid-January and early February.
