US STOCKS-Wall St up on bargain hunting, banks advance

* New home sales better than expected

* Boeing, Alcoa and Home Depot all get broker upgrades

* Geithner urges united action on debt crisis

* Dow up 0.8 pct, S&P 500 up 1 pct, Nasdaq up 1.2 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early afternoon)

By Ryan Vlastelica

NEW YORK, May 26 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) rose on Wednesday
as investors bought shares of beaten-down companies following
recent losses, and after new home sales rose last month to
their highest in almost two years.

Industrial and bank shares ranked among the top gainers as
Wall Street bounced back from a sell-off ignited by fears that
the sovereign debt problems in Europe would evolve into
another global financial crisis. The S&P 500 has fallen more
than 10 percent from a closing high reached on April 23,
putting the index into correction territory.

The CBOE Volatility Index (.VIX: ) lost 8.6 percent after
earlier tumbling more than 30 percent to levels seen before
the Spanish government took over a local lender on Saturday,
which had revived anxiety about the strength of Europe’s
financial system.

Heavy machinery maker Caterpillar Inc (CAT.N: ) gave the Dow
its biggest boost, rising 3 percent to $61.02. Bank of America
Corp (BAC.N: ) rose 1.3 percent to $15.69.

“After nearing the February lows and rebounding from them
yesterday, investors switched from global thinking to domestic
thinking, and realized that there are a lot of areas where
we’ve become oversold,” said Marc Pado, market strategist at
Cantor Fitzgerald & Co in San Francisco.

A report showed that sales of newly built U.S.
single-family homes rose far more than expected in April as
buyers rushed to benefit from a government tax credit before
it expired. D.R. Horton Inc (DHI.N: ) added 2.3 percent to
$12.38, while the Dow Jones U.S. home construction index
(.DJUSHB: ) jumped 3 percent. For details, see [ID:nN26186476]

“Even though this was the culmination of the housing
market stimulus, any sign of strength is going to help keep
this bounce day alive,” Pado said.

Luxury home builder Toll Brothers Inc (TOL.N: ) advanced 3.2
percent to $21.27 after posting a second-quarter loss that
narrowed from the previous year. [ID:nN26175992]

The Dow Jones industrial average (.DJI: ) was up 76.33
points, or 0.76 percent, at 10,120.08. The Standard & Poor’s
500 Index (.SPX: ) was up 10.21 points, or 0.95 percent, at
1,084.24. The Nasdaq Composite Index (.IXIC: ) was up 27.39
points, or 1.24 percent, at 2,238.34.

A trio of Dow components received broker upgrades,
including Boeing Co (BA.N: ), Alcoa Inc (AA.N: ) and Home Depot
(HD.N: ). Boeing was among the Dow’s top percentage gainers,
rising 2.3 percent to $64.20, while Alcoa added 1.5 percent to
$11.47 and Home Depot gained 1.7 percent to $34.55.
[ID:nSGE64P0I6] and [ID:nSGE64P0H1]

Citigroup Inc (C.N: ) was also upgraded, sending the stock
up 5 percent to $3.97. [ID:nSGE64P0FU]

Technology stocks also were counted among the day’s
gainers, with Apple Inc (Read more about Apple stock future.) (AAPL.O: ) up 2 percent at $250.18 and
Google Inc (Read more about Google Stock Analysis) (GOOG.O: ) up 1.8 percent at $485.53.

On the downside, American Eagle Outfitters (AEO.N: ) tumbled
16 percent to $12.99 after it gave a second-quarter outlook
that was below expectations. [ID:nN25131651]

U.S. Treasury Secretary Timothy Geithner flew to Europe to
press for united action to tackle the region’s deepening debt
crisis. The move came as the European Union said it might go
it alone with a crisis levy on banks. [ID:nLDE64P1NG]

Elsewhere on the economic front, orders for durable goods
rose much more than expected in April to their highest level
since September 2008.

Stocks

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

US STOCKS-Wall St up on bargain hunting, banks advance