Yahoo News Release

Surprise Home Sales Rise, Oil Pullback Boost Shares

By Kristina Cooke        Tuesday May 27, 2008
 

NEW YORK (Reuters) – Stocks rose on Tuesday, helped by an unexpected rise in new home sales last month and a pullback in oil’s price, which boosted airlines and other energy-sensitive sectors.

Crude oil futures fell more than $2 to below $130 a brrel. An index of airline shares, which were battered in the market’s worst week in 3 months last week, rose 3 percent.

Retailers also bounced back as oil’s retreat eased concerns about the impact of higher fuel costs on consumer spending. The Dow Jones home construction index .D jumped 2.3 percent after data showed a rise in April new home sales.

It was the first increase in new home sales since October. Home Depot Inc, the world’s biggest home improvement retailer, was the second-biggest percentage gainer on the Dow. . . . .