Dow up 66 points

Investors showed little reaction to the National Association of Realtors’ report that sales of existing homes fell 2.6% in April to 5.99 million units, the slowest sales rate in almost four years.

The gains followed four mostly negative sessions for Wall Street’s major indexes.

Given Wall Street’s robust performance in recent months, a pullback in which investors consolidate gains was not unexpected. However, the week began with a flourish that could have suggested a further climb: The Standard & Poor’s 500 index traded above its record close for the first time in more than seven years.

But concerns over the continued strength of the market’s run and comments from former Federal Reserve chairman Alan Greenspan about the possibility of a sharp pullback in Chinese stocks left some investors unnerved.

According to preliminary calculations, the Dow Jones industrial average rose 66.15, or 0.49%, to 13,507.28.

Broader stock indicators also rose. The Standard & Poor's 500 index advanced 8.22, or 0.55%, to 1,515.73, and the Nasdaq composite index rose 19.27, or 0.76%, to 2,557.19.

Bonds fell following the housing data and as stocks regained lost ground today. The yield on the benchmark 10-year Treasury note rose to 4.86% from 4.84% on Thursday. The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude rose 1.02 to 65.20 per barrel on the New York Mercantile Exchange.

Stocks rose as the Nasdaq announced its 3.67 billion deal. The move gives the stock market entrance to Europe through OMX, which operates exchanges in seven Nordic countries.

It will become the world’s second transatlantic exchange after the New York Stock Exchange bought Paris-based Euronext earlier this year.

The gains came after Wall Street retreated yesterday following housing data that showed sales of single-family homes surged in April by the largest amount in 14 years but that prices fell sharply as well. While a resilient housing market would be good for the US economy, it could also reduce the likelihood that the Federal Reserve would reduce interest rates.

“I think the housing market has been on the top of everybody’s list of concerns and now when you see some positives a lot of investors are taking a step back and saying maybe things aren’t as bad. There is uncertainty about interest rates,” said Steve Schoepke, vice president of research and product development at AIG SunAmerica Asset Management.

In corporate news, Nasdaq’s stock fell 1.14, or 3.4%, to 32.84 after announcing its OMX bid. The combined operations will form the world’s second trans-Atlantic exchange.

Retailer Gap fell 11 cents to 18.18 after reporting its first-quarter profit fell 26%.

Coca-Cola, one of the 30 stocks that makes up the Dow industrials, rose 65 cents to 51.89 after the beverage maker said it would acquire Vitaminwater maker Glaceau for $4.1bn (€3bn) in a bid to expand its line of non-carbonated beverages.

SourceForge, formerly VA Software Corp, said its third-quarter profit rose as a result of the sale of its enterprise software business. The stock jumped 59 cents, or 15.8%, to 4.32.

Verigy jumped 5, or 20.3%, to 29.63 after the Singapore chip-testing equipment maker forecast stronger-than-expected sales.

RF Micro Devices, which makes radio frequency components used in mobile devices, advanced 34 cents, or 5.5%, to 6.50 after an analyst raised his rating on the stock, contending demand for the company’s products will improve in the second half of the year.

Advancing issues outnumbered decliners by more than 2 to 1 on the New York Stock Exchange, where volume totalled 1.23 billion shares.

The Russell 2000 index of smaller companies rose 6.13, or 0.74%, to 829.93.