US stocks moved higher on Tuesday as investors bet that April's slide in US housing starts and permits signalled that the housing market may soon stabilise as the supply of new homes dwindles. International Business Machines, up 1.2 percent to $105.79, and Hewlett Packard, up 3 percent to $36.79, were the top boosts to the Dow Jones industrial index, while the PHLX Semiconductor index added 1.8 percent.
Hewlett Packard is set to report quarterly results after the bell. The Dow Jones industrial average added 28.51 points, or 0.34 percent, at 8,532.59. The Standard & Poor's 500 Index gained 5.27 points, or 0.58 percent, at 914.98. The Nasdaq Composite Index rose 12.05 points, or 0.70 percent, at 1,744.41. US stocks recovered more than half of their losses on Monday, following their worst week in two months, on the back of stronger-than-expected results from Lowe's Cos Inc.
On Tuesday, the Chicago Board Options Exchange Volatility index also known as Wall Street's "fear gauge," fell below 30 for the first time in eight months, extending a pullback from the bear market lows of early March.
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