Stocks rise after pending home sales top forecasts

Stocks extend climb after April homes sales increase 6 percent on race to meet tax credit

NEW YORK (AP) -- Stocks are extending their gains following a trade group's report that pending home sales rose more than expected in April.

The National Association of Realtors says Wednesday that its seasonally adjusted index of contracts for existing homes has risen 6 percent in April. The index came in at 110.9; economists polled by Thomson Reuters forecast 108. Buyers were racing to meet a tax credit deadline that expired in April.

The Dow Jones industrial average is up 56 at 10,080. It was up 36 ahead of the report. The market has been rebounding from a late slide Tuesday that shaved nearly 113 points off the Dow.

The Standard & Poor's 500 index is up 7 at 1,078, while the Nasdaq composite index is up 14 at 2,237.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) -- Stocks rose in early trading Wednesday as the market bounces back a day after major indexes plunged shortly before the close.

Stocks got a boost as the euro held above the four-year low it hit on Tuesday. The euro, which is used by 16 European countries, has heavily influenced trading over the past month. It has particularly influenced futures trading when there are few other economic reports out for investors to review and help drive trading.

The currency has become an indicator of confidence in Europe's ability to contain a sovereign debt crisis that began in Greece, but has spread to other countries, including Spain and Portugal. The euro was nearly unchanged at $1.2203.

Early morning gains come even as overseas markets fall. U.S. markets tumbled late Tuesday and Asian and European markets followed that decline, reacting to news that the U.S. government launched criminal and civil investigations of the Gulf of Mexico oil spill.

Attorney General Eric Holder's disclosure of the investigations led to a sell-off at the end of the day. The Dow Jones industrial average tumbled nearly 113 points, its fifth decline in the last six sessions.

Japan's market was hurt Wednesday after its prime minister resigned ahead of an election next month.

In early trading, the Dow Jones industrial average rose 31.59, or 0.3 percent, at 10,055.61. The Standard & Poor's 500 index rose 5.02, or 0.5 percent, to 1,075.73, while the Nasdaq composite index climbed 6.70, or 0.3 percent, to 2,229.03.

With traders mostly focused on the health of Europe's economy and political events over the past month, domestic economic reports have taken somewhat of a backseat. Stocks couldn't hold onto early gains Tuesday following a better-than-expected report on the manufacturing sector from the Institute for Supply Management.

A report Wednesday is expected to show pending home sales surged in April. However, like many other housing reports from the month, investors are likely to dismiss the results. That's because April was the final month for home buyers to qualify for a tax credit. Analysts widely expect housing data to weaken in the coming months because the credit has expired.

The National Association of Realtors pending home sales index, which tracks signed contracts to buy previously occupied homes, likely rose to 108 in April, according to economists surveyed by Thomson Reuters. That would represent a 5 percent increase from March's reading of 102.9.