* U.S. lawmakers say they're confident they can avoid
* Existing home sales, homebuilder sentiment climb
* Earnings boost Lowe's, Tyson Foods
* Indexes up: Dow 1.3 pct, S&P 1.6 pct, Nasdaq 1.6 pct
By Leah Schnurr
NEW YORK, Nov 19 Wall Street bounced on Monday
as investors were heartened by signs of progress in talks to
resolve the fiscal crunch and data that showed the recovery in
the housing sector was gaining strength.
The major indexes climbed more than 1 percent after tumbling
in recent weeks on nervousness over when and if Washington will
come to an agreement to avoid the series of tax and spending
changes that will start to come into effect in the new year.
Over the weekend, leading Democratic and Republican
lawmakers expressed confidence that they could reach a deal to
avert the "fiscal cliff", even as they laid down markers on
raising taxes and spending cuts that may make any agreement more
"What you're seeing today is an oversold bounce in the
market," said Michael Sheldon, chief market strategist at RDM
Financial in Westport, Connecticut.
"This could last for a few more days, but ultimately we'll
need to see what type of legislation or forward progress comes
out of Washington."
Stronger-than-expected earnings from Lowe's and Tyson Foods,
as well as encouraging housing data also contributed to the
U.S. home resales unexpectedly rose in October, while
separate data showed homebuilder sentiment rose to its highest
level in over six years in November.
The PHLX Housing Index rose 1.7 percent.
The Dow Jones industrial average gained 163.07
points, or 1.30 percent, to 12,751.38. The Standard & Poor's 500
Index rose 21.52 points, or 1.58 percent, to 1,381.40.
The Nasdaq Composite Index climbed 46.51 points, or 1.63
percent, to 2,899.64.
The S&P 500 was approaching its 200-day moving average
around 1,382. Rising back above the key technical level could
provide additional support for the index.
Shares of Lowe's Cos Inc, the world's No. 2 home
improvement chain, jumped 6.3 percent to $33.99 after the
company reported higher-than-expected quarterly profit and
raised its full-year sales forecast.
Tyson Foods Inc likewise beat expectations and gave
an upbeat forecast, sending its stock up 8.5 percent at $18.32.
Intel shares erased earlier losses to trade higher
after the company said its chief executive will retire in May.
Intel was up 0.9 percent at $20.37.