NEW YORK, Mar 23 (Reuters): US stocks advanced on Tuesday, as sales of previously owned US homes fell less than expected in February, while the industrial and technology sectors underpinned the market.
Heavy equipment maker Caterpillar Inc gained 3.8% to $62.23 and ranked as the Dow's top advancer. Wells Fargo raised its 12- to 18-month price target on the stock to a range of $73 to $75 from $63 to $65.
The National Association of Realtors said sales fell to an annual rate of 5.02 million units in February. The decline was less than forecast, but it highlighted the fragility of a housing recovery.
"Month-over-month sales were marginally better," said Tom Schrader, managing director, US equity trading at Stifel Nicolaus Capital Markets in Baltimore. "It says sales flat-lined."
At the same time, home builder KB Home posted a wider-than-expected quarterly loss, pushing its stock down 3.5% to $16.83. The Dow Jones US home construction index fell 0.7%. On the Nasdaq, Integrated Silicon Solution Inc shares surged 18.7% to $8.89 after the company raised its second-quarter revenue and earnings outlook at the close of the previous session.
The Dow Jones industrial average was up 55.55 points, or 0.52%, at 10,841.44. The Standard & Poor's 500 Index was up 3.28 points, or 0.28%, at 1,169.09. The Nasdaq