News Summary: Good economic news bolsters stocks
HOMES, JOBS, SPENDING: Encouraging news about the economy helped lift the stock market Wednesday. Consumer spending rose in May and pending home sales surged. Also, the number of Americans seeking unemployment benefits fell last week.
REASSURING WORDS: William Dudley, president of the New York Fed, reassured investors that the central bank would keep up its bond buying program if the economy fails to grow at the pace that the central bank is expecting. The stock market has been volatile since Fed Chairman Ben Bernanke said last week that the central bank would ease its stimulus program by year-end if the economy was strong enough.
FALLING YIELDS: The yield on the 10-year Treasury note fell for a second day, dropping to 2.47 percent from 2.54 percent Wednesday. That helped settle investors' nerves. A surge in Treasury yields since the middle of June raised concerns that higher interest rates would hurt the economy.