Pulte Homes Inc. lost $361.4 million in the third quarter, but with the acquisition of Centex Corp., the homebuilder increased sales by more than a third.

New home sales rose a tepid 0.7 percent last month, missing Wall Street expectations and providing more evidence the housing market recovery remains tentative.

Stocks rallied to their highest closes since November Monday following encouraging economic reports from the U.S. and abroad and following news that auto sales got a boost from the "Cash for Clunkers" program.

Stocks rallied Monday after a pair of encouraging reports on the manufacturing sector, plus strong bank earnings out of Europe and expectations for strong auto sales. The S&P briefly topped 1,000, a level it hasn't seen since November.

Stocks got a quick pop at the open Monday after some strong bank earnings out of Europe and expectations that auto sales will show a boost from the "Cash for Clunkers" program. But the rally quickly fizzled.

Stock index futures indicated a strong opening for Wall Street Monday, helped by European markets that hit a broader-index high for the year on better-than-expected bank earnings.

Fresh signs that the economy is stabilizing  emerged Tuesday in reports that home construction rose more than expected last month and wholesale prices remain in check.

Housing construction fell to a record low in April as a steep drop in apartment building offset a rebound in single-family construction.

The National Association of Home Builders says its housing market index increased for the second month in a row in May, reflecting growing optimism on the part of many builders