By Ryan Vlastelica
NEW YORK (Reuters) - U.S. stocks rose on Tuesday, putting the S&P 500 within striking distance of its all-time high, as strong data on home prices pointed to an economy that was improving, albeit slowly.
U.S. single-family home prices rose in January at the fastest pace in more than six years.
Shares of homebuilding stocks rose, with Toll Brothers up 0.9 percent to $35.47 and Lennar Corp up 0.9 percent at $41.92.
The data "supports the thesis that housing is indeed recovering, which is sensational news for the household balance sheet," said Todd Schoenberger, managing partner at LandColt Capital in New York. Equity markets "should continue to elevate for the foreseeable future."
A measure of U.S. manufacturing also rose. The Commerce Department reported demand for long-lasting U.S. manufactured goods surged in February by 5.7 percent.
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Still, investors may look for reasons to take profits with the S&P up 9.3 percent so far this year, putting the benchmark index near an all-time closing high, which it nearly hit on Monday.
In a sign that growth continues to be slow, sales of new U.S. single-family homes fell more than expected in February, and the latest reading on consumer confidence was weaker than expected.
Investors were concerned about the negative implications of a financial rescue plan for Cyprus. They worried it would serve as a template for other euro zone economies requiring bailouts.
Banks in Cyprus will remain closed until Thursday and will then be subject to capital controls to prevent a run on deposits. President Nicos Anastasiades said late on Monday that a 10 billion euro rescue plan agreed at the weekend was "painful" but essential to avoid economic meltdown.
"If there's a run on deposits, there may be a sell-off (in U.S. stocks), but that could pose an excellent entry point to get into the market and take advantage of this rally," Schoenberger said.
The Dow Jones industrial average was up 90.42 points, or 0.63 percent, at 14,538.17. The Standard & Poor's 500 Index was up 7.58 points, or 0.49 percent, at 1,559.27. The Nasdaq Composite Index rose 9.19 points, or 0.28 percent, at 3,244.49.
The benchmark S&P 500 index traded on Monday just a quarter point below its all-time closing high, then retreated as investors cashed in gains in the wake of news out of Europe. Its record close stands at 1,565.15, set October 9, 2007.
Monsanto Co and DuPont Co settled a legal battle over rights to technology for genetically modified seeds and will drop antitrust and patent lawsuits against each other in U.S. federal court. Monsanto shares rose 3.3 percent to $102.69 and DuPont shed 1 percent to $48.64.
Shares of Supervalu Inc rose 1.8 percent to $5.14 after it said it will cut about 1,100 jobs across the United States as it tries to revamp its business after selling some of its supermarket chains.
Michael Dell's $24.4 billion buyout bid for Dell Inc could be derailed after billionaire Carl Icahn opened the door to an alliance with Blackstone Group LP to take control of the computer maker from its founder. Dell was flat at $14.52.
(Editing by Kenneth Barry)