RPT-US STOCKS-Wall St rallies on FedEx, home sales data

(Repeats to fix indentation on paragraph 6)
* FedEx gains after shipper raises outlook
* June home sales post largest percentage jump in 30 years
* S&P 500 Index holds above key technical 1,100 level
* Dow up 0.5 pct; S&P up 0.8 pct; Nasdaq up 0.7 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday trade; changes byline)

By Angela Moon

NEW YORK, July 26 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) advanced on
Monday after a rosy outlook from FedEx and strong home sales
data fueled optimism, helping the S&P 500 stay above a key
resistance level that could confirm Wall Street may be back in
bullish mode.

Shares of economic bellwether FedEx Corp (FDX.N: ) rose 4.9
percent to $82.86 after the package delivery and business
services company raised its quarterly and full-year earnings
forecast, a sign that demand may be picking up again. For
details, see [ID:nN26199061]

A surprising 23.6 percent jump in new home sales in June
from May offset some disappointing data in recent weeks that
sparked fears that the economy may slip back into recession.

The “markets are focusing in on more recent data as
hopefully being indicative of what’s ahead,” said Tim
Ghriskey, chief investment officer at Solaris Asset Management
in New York.

The Dow Jones industrial average (.DJI: ) added 56.54
points, or 0.54 percent, at 10,481.16. The Standard & Poor’s
500 Index (.SPX: ) gained 8.36 points, or 0.76 percent, to
1,111.02. The Nasdaq Composite Index (.IXIC: ) rose 14.66
points, or 0.65 percent, to 2,284.13.

The S&P 500 held above the 1,100 level after closing just
above that level on Friday, which can be seen as significant
since it “breaks the bulk of the top end of the trading range
for the last several months,” according to Bryan McCormick,
options strategist at optionMonster.com.

At midday, both the Dow and the Nasdaq were slightly
higher for the year to date, while the S&P 500 was within just
a few points of break-even following declines from the late
April closing highs due to anxiety about the euro zone’s debt
troubles and the high U.S. unemployment rate.

“The big question now is whether the rally has exhausted
itself in making the move to resistance … A strong breakout
now would go a long way toward confirming that the index is
truly back on a bullish track. A failure would be equally
frustrating and would likely see us lapse back into the
existing trading range awaiting a stronger catalyst,” he
said.

He noted that the S&P 500’s next big resistance level is
at the 200-day moving average, at 1,114.21.

The S&P 500 rose 7.8 percent during the three weeks ended
Friday, the largest gain in such a period since the first week
of August 2009.

Home building products manufacturer Masco Corp (MAS.N: )
rose 3.9 percent to $11.87 and led gains in the Morgan Stanley
housing index (.HGX: ), which rose 2.5 percent. Masco is
expected to report quarterly results after the closing bell.

Genzyme Corp (GENZ.O: ) continued to rise on takeover
speculation, as the Wall Street Journal said Britain’s
GlaxoSmithKline Plc (GSK.L: )(GSK.N: ) had recently made “a very
casual approach,” to the U.S. biotech company.

Genzyme shot up 6.9 percent to $66.81.

Sources familiar with the matter said on Friday that
Sanofi-Aventis (SASY.PA: )(SNY.N: ) was sounding out Genzyme,
prompting a 15 percent jump in the U.S. biotech company’s
market value to $16.7 billion. [ID:nLDE66P0JJ]

BP Plc (BP.L: )(BP.N: ) is expected to install an American
known for diplomacy as chief executive, replacing Tony Hayward
who has come under fire for his gaffe-prone handling of the
worst oil spill in U.S. history. Bob Dudley, the U.S.
executive managing the response operation to the spill in the
Gulf of Mexico, is poised to get the top job in the next 24
hours, a move that could soften U.S. criticism of the major
British oil company, sources close to BP say.

[ID:nLDE66P0IF] [ID:nLDE66P0X9]

U.S.-traded shares of BP (BP.N: ) gained 4.9 percent to
$38.66.

Stock Market Report

(Reporting by Angela Moon; Editing by Jan Paschal)

RPT-US STOCKS-Wall St rallies on FedEx, home sales data