* Strong data helps calm markets roiled by Fed
* Homebuilders rally after Lennar results, data
* Walgreen slips after earnings
* Indexes up: Dow 0.6 pct, S&P 0.7 pct, Nasdaq 0.5 pct
By Alison Griswold
NEW YORK, June 25 (Reuters) - U.S. stocks rose on Tuesday
after strong housing and durable-goods figures brought a measure
of calm to investors worried about the Federal Reserve's plans
to reduce its massive monetary stimulus.
Analysts said the market was due for a rebound after
Monday's sizeable drop, which followed the worst week for the
S&P 500 since April. Even with the latest gains, the index
remains down 5.1 percent from its all-time closing high of
1,669.16 reached on May 21.
The recent downturn was sparked by Fed Chairman Ben
Bernanke's announcement last week the Fed will begin to scale
back its in monthly bond purchases as the economy improves. The
declines have been broad and have come on heavy volume,
indicating selling by investors with large positions.
"The overreaction was stunning. This market got sold off to
quickly, too far, too fast, across all sectors, and traders and
investors threw everything out," said Keith Bliss, senior
vice-president at Cuttone & Co. in New York.
"There's a lot of great buying opportunities that were
created in the last few days and I think investors will step in
and take advantage of that."
Data on durable goods orders, sales of new homes and
consumer confidence all topped analysts' expectations. The April
Case/Shiller report on home prices also exceeded forecasts.
Should this run of strong economic figures continue, it will
mollify those worried about lack of Fed support.
Housing stocks were among the strongest of the day after the
data and also after Lennar Corp posted strong results,
pointing to a "solid housing recovery." The stock rose 1 percent
to $35.35 while the PHLX housing sector index climbed 1.4
The Dow Jones industrial average was up 80.75 points,
or 0.55 percent, at 14,740.31. The Standard & Poor's 500 Index
was up 11.28 points, or 0.72 percent, at 1,584.37. The
Nasdaq Composite Index was up 16.46 points, or 0.50
percent, at 3,337.22.
While the S&P is up 11.2 percent in 2013, the recent trend
has been negative, with the benchmark index dropping below both
its 14-day and 50-day moving averages, seen as signs of
near-term market direction. The S&P is down about 2.7 percent in
The index on Monday closed at its lowest level since April
22 after China's central bank said the country's banks need to
do a better job of managing their cash and due to continued
worries about a reduction in stimulus from the U.S. Federal
On Tuesday, the People's Bank of China said it would not
press banks too hard in its efforts to curb easy credit and
prevent a possible banking crisis.
Carnival Corp jumped 4.4 percent to $34.68 after the
cruise ship operator named a new chief executive and affirmed
its full-year profit outlook.
On the downside, Walgreen Co slumped 6.2 percent to
$45.08 as the worst performer on the S&P 500 after reporting
weaker-than-expected results, citing slow front-end sales and a
Barnes & Noble Inc tumbled 19.9 percent to $15.07
after the largest U.S. bookstore chain reported its quarterly
net loss more than doubled.