BUSINESS

Big increase in home prices sends stocks higher on Wall Street; S&P 500 approaches record high

03/26/2013 04:21 EDT | Updated 05/26/2013 05:12 EDT
NEW YORK, N.Y. - The Standard & Poor's 500 index closed within a point of its all-time high after another strong report on housing encouraged investors to buy stocks.

The S&P 500 gained 12 points, or 0.8 per cent, to 1,563 Tuesday. It's a point away from the record high reached in October 2007.

The Dow Jones industrial average rose 111 points, or 0.8 per cent, to close at 14,559. It was the biggest gain in three weeks.

The Nasdaq composite rose 17 points, 0.5 per cent, to 3,252.

Housing prices rose in January at the fastest pace since summer 2006, before the housing bubble burst. The Standard & Poor's/Case-Shiller index climbed 8.1 per cent.

Two stocks rose for every one that fell on the New York Stock Exchange. Volume was lighter than usual, 2.8 billion shares.