Stocks Snap Higher Following Encouraging Signs on U.S. Economy

NEW YORK (AP) -

Stocks are closing sharply higher, giving the market its best day in over a month.

Traders were encouraged by several pieces of good news on the U.S. economy Tuesday, including a jump in construction spending to the highest level in eight years.

Homebuilders and banks were among the biggest gainers. JPMorgan Chase and Bank of America each rose 5 percent.

Hertz jumped 13 percent after reporting earnings that were better than analysts were expecting.

The Dow Jones Industrial Average climbed 348 points, or 2.1 percent, to 16,865.

The Standard & Poor’s 500 index gained 46 points, or 2.4 percent, to 1,978. The Nasdaq composite rose 131 points, or 2.9 percent, to 4,689.

Bond prices fell. The yield on the 10-year Treasury note rose to 1.83 percent.