Stocks rise, recovering most of Monday's loss

Home prices and Europe's economy strengthen

2/5/2013

NEW YORK — Stocks moved higher on Wall Street following a surge in U.S. home prices and new signs of strength in Europe's economy.

The Dow Jones industrial average was up 113 points at 13,993 shortly before midday today.

The Standard & Poor's 500 rose 14 to 1,509. The Nasdaq rose 29 to 3,160.

The gains follow two days of whiplash. On Friday the Dow gained 149 points, rising above 14,000 for the first time since 2007. On Monday it fell 129 points, the worst drop of the year.

Today's advance was driven by a surge in U.S. home prices in December and a jump in a measure of Europe's manufacturing and service businesses to a 10-month high in January.

Kellogg and Archer Daniels Midland rose after reporting strong earnings.