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Stocks Jump After Home Prices, Confidence Surge02:47
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Traders Thomas Lyden, left, and John Bishop work on the floor of the New York Stock Exchange Tuesday, May 28, 2013. (Richard Drew/AP)
Traders Thomas Lyden, left, and John Bishop work on the floor of the New York Stock Exchange Tuesday, May 28, 2013. (Richard Drew/AP)

Stocks surged Tuesday after U.S. home prices rose the most in seven years and consumer confidence reached a five-year high.

The Dow Jones industrial average climbed as much as 210 points during morning trading as traders returned from the Memorial Day holiday.

U.S. government bond prices fell as investors moved money out of safe assets and into riskier ones. The yield on the 10-year Treasury note climbed its highest level in more than a year.

The recovery in the housing market has been an important factor driving the stock market to record highs this year.

Home builder stocks rose early Tuesday after the Standard & Poor's/Case-Shiller survey found that U.S. home prices rose 10.9 percent in March, the most since April 2006.

A growing number of buyers are bidding on a tight supply of homes. The survey was released before the stock market opened.

Stocks extended their gains after the Conference Board reported at 10 a.m. that its measure of consumer confidence rose in May to its highest level since February 2008.

Many economists think growth is slowing slightly in the April-June quarter to an annual rate between 2 percent and 2.5 percent. But many economists say growth should strengthen in the second half of this year, boosted by the gains in housing and employment.


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This segment aired on May 28, 2013.

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