2 DEC 2009

The Dow Jones industrial average climbed to its highest close in 14 months on Tuesday. The Dow Jones industrial average shot up 126.74 points, or 1.23 percent, to end at 10,471.58. The Standard & Poor's 500 Index rose 13.23 points, or 1.21 percent, to 1,108.86. The Nasdaq Composite Index advanced 31.21 points, or 1.46 percent, to close at 2,175.81.

The dollar's decline bolstered shares of commodity-oriented companies.natural resource

There was good news on the local economic front too as data showed pending sales of previously owned U.S. homes rose more than expected to their highest level in 3-1/2 years in October. The Dow Jones home construction index gained 1.3 percent.

In the day's housing data, sales advanced to their highest level in 3-1/2 years, according to a report from the National Association of Realtors.

Other data showed construction spending was flat in October, above the expectation for it to slide in the month. In addition, the Institute for Supply Management said that the manufacturing sector expanded in November, though the expansion was less than expected.

Concerns over a possible debt default by Dubai World triggered a sell-off in stocks globally on Friday but market sentiment got a lift as concerns receded about the impact of Dubai's debt trouble after news that Dubai World planned to restructure about $26 billion in debt.