U.S. stocks rose for the third day in four as an industry report showed that home resales climbed more than expected in October and some investors anticipated an upward revision of figures on third-quarter economic growth.
The Dow Jones industrial average rose 44.56, or 0.5 percent, to 8849.40, and the Nasdaq composite index advanced 13.16, or 0.9 percent, to 1481.90. The Standard & Poor's 500-stock index rose 2.33, or 0.3 percent, to 932.88.
Resales of single-family homes rose 6.1 percent, to a 5.77 million-unit pace, the National Association of Realtors said. And a government report Tuesday is expected to show that the economy grew at a 3.8 percent annual pace last quarter, compared with an initial estimate of 3.1 percent, according to a Bloomberg survey of economists.
Chip stocks rallied. Intel rose 43 cents, to $20.48; Novellus rose $1.85, to $36.25; Linear Technology rose $1.46, to $34.96; and KLA-Tencor rose $1.29, to $44.14.
IBM, the world's largest computer maker, rose $1.77, to $86.20.
SBC Communications rose 85 cents, to $28.40; Verizon Communications gained $1, to $41; and BellSouth advanced 91 cents, to $28.36. The local telephone companies may receive hundreds of millions of dollars of upfront payments from bankrupt WorldCom for use of their local networks by the No. 2 U.S. long-distance carrier, the Los Angeles Times reported.
The former Bell System phone companies are lobbying regulators to slow WorldCom's reorganization in a bid to pick off its business, the paper said, citing analysts.
General Electric rose 35 cents, to $26.80.
Health insurers slid after an SG Cowen analyst said their revenue growth may slow. UnitedHealth Group tumbled $8.17, to $76.45; WellPoint Health Networks lost $7.25, to $62.49; and Aetna declined $4.39, to $35.75. Cigna fell $1.16, to $40.39, and Humana shed 86 cents, to $9.87.
Chubb fell $1.88, to $56.64. The business insurer plans to sell $525 million of common stock purchase warrants and debt securities sold as equity units.
Cendant fell 44 cents, to $12.26. The franchiser of brokerages including Coldwell Banker and Century 21 fell on a New York Times report that it is under Securities and Exchange Commission investigation over transactions with Homestore, the biggest on-line home-listings company. Cendant, Homestore's biggest shareholder, said in a statement that it had "no indication" of an SEC investigation.
Three former Homestore executives told regulators and federal prosecutors that the company relied on bogus transactions with Cendant and AOL Time Warner to meet revenue targets in 2000 and 2001, the paper said.
AOL Time Warner rose 32 cents, to $16.21.
* The New York Stock Exchange composite index rose 0.99, to 492.62; the American Stock Exchange index fell 1.46, to 814.59; and the Russell 2000 index of smaller-company stocks rose 4.85, to 404.85.
* Advancing issues outnumbered declining ones by 11 to 8 on the NYSE, where trading volume fell to 1.59 billion shares, from 1.64 billion on Friday. On the Nasdaq, advancers outnumbered decliners by 3 to 2 and volume totaled 1.92 billion, unchanged from Friday.
* The price of the Treasury's 10-year note was unchanged, and its yield remained at 4.18 percent.
* The dollar fell against the Japanese yen and rose against the euro. In late New York trading, a dollar bought 122.07 yen, down from 122.88 late Friday, and a euro bought 99.09 cents, down from 99.70.
* Light, sweet crude oil for January delivery settled at $26.11 a barrel, down 65 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $317.80 a troy ounce, from $320.70 on Friday, on the New York Mercantile Exchange's Commodity Exchange.