Upturn in home construction sends stocks higher

FILE - In this Friday, March 1, 2013, file photo, specialist Peter Elkins works on the floor of the New York Stock Exchange. World stock markets ran out of steam Wednesday March 13, 2013 after a sharp drop in Britain's industrial production and a warning from the head of Germany's central bank that the euro debt crisis isn't over. (AP Photo/Richard Drew, File)

Upturn in home construction sends stocks higher

Published: 01:45:45 PM, Tue 19 March 2013 UTC

NEW YORK (AP) — A surprisingly strong increase in new home construction is sending stocks higher in early trading on Wall Street.

The Dow Jones industrial average rose 40 points, or 0.3 percent, to 14,491 shortly after the opening bell Tuesday.

The Standard & Poor's 500 index was up two points, or 0.2 percent, to 1,554. The Nasdaq composite rose six points, also 0.2 percent, to 3,244.

The Commerce Department reported before the market opened that builders increased the number of homes and apartments they're constructing in February at the fastest pace in 4 ½ years.

Home builder stocks including Lennar, Beazer Homes and PulteGroup rose.

European markets were tense ahead of a vote in the Mediterranean nation of Cyprus on a contentious plan to help fund that country's bailout by raiding bank deposits.

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