US STOCKS-Wall St rallies on Bernanke relief, consumer shares

* Relief after Bernanke questioning

* Home builders, retailers, energy gain

* Dow up 2.1 pct, S&P up 2.1 pct, Nasdaq up 2.1 pct

* For up-to-the-minute market news click [STXNEWS/US] (Updates close with more details on Bernanke hearing, Palm shares up after the bell, J.C. Penney's gains and volume)

By Caroline Valetkevitch

NEW YORK, June 25 (Reuters) - U.S. stocks rallied on Thursday as investors were relieved Fed Chairman Ben Bernanke withstood a barrage of pointed questions from Congress on the Bank of America-Merrill Lynch deal relatively unscathed.

Retailers and home builders led stocks higher for much of the session, helped by a surprising profit increase from retailer Bed Bath & Beyond Inc(BBBY.O). Energy companies' shares also rose as oil prices climbed above $70 a barrel.

Stocks extended gains shortly before midday as investors took Bernanke's hearing in stride. Despite lawmakers' criticisms of Bernanke, the Fed chairman is well liked on Wall Street and most analysts anticipate he will be reappointed.