Rising Home Sales Boost Markets

The markets surged during the midday with the Dow soaring 174 points to 9055 as investors embraced news that existing home sales rose more than expected. Nasdaq surged 46 points to 1972.

On the upside

Celgene (Nasdaq: CELG) reported positive trial results for its multiple myeloma treatment Revlimid. The biotechnology company also posted higher second quarter income that met expectations.

International Game Technology (NYSE: IGT) reported lower third quarter income but the results surpassed analyst expectations.

Although Hercules Offshore (Nasdaq: HERO) swung to a loss for the second quarter, the results were better than expected.

On the downside

Although second quarter earnings rose for Safeway (NYSE: SWY), the grocery chain lowered its full year forecast as sales slipped.

An insurance firm owned by billionaire Warren Buffett sold nearly 8 million shares of Moody's (NYSE: MCO) prompting a downgrade.

Celera (Nasdaq: CRA) disappointed with a second quarter revenue outlook below expectations and by withdrawing its full year revenue guidance.

In the broad market, advancing issues outpaced decliners by a margin of nearly 6 to 1 on the NYSE and by nearly 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks jumped 17 points to 545.