Stocks extend gains after home sales report
NEW YORK -- The Dow Jones industrials are back above 9,000 for the first time since the beginning of January.
Thursday's report of a jump in home sales last month eased investors' worries about one of the economy's biggest trouble spots. They responded by buying stocks across the market, lifting major stock indexes almost 2% or more and sending the Dow past 9,000.
A real estate group said sales of previously occupied homes rose 3.6% from May to June. It was the third straight monthly increase and fed investors' hopes that the overall economy is strengthening.
A weak housing market and rising unemployment are widely seen as two of the biggest obstacles to a recovery in the economy. The National Association of Realtors said sales came in at 4.89 million last month, above the 4.84 million analysts had been expecting.
In another economic report Thursday, the government said new claims for unemployment benefits rose more than expected last week, though the report was distorted again by the timing of auto plant shutdowns.
The company said it will pay $16 a share for Medarex — a 90% premium over Medarex's closing share price Wednesday.
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