* U.S. lawmakers say they're confident they can avoid
* UBS sets S&P 500 price target for year-end 2013 at 1,425
* U.S. existing home sales climb, housing recovery gains
* Indexes up: Dow 1.2 pct, S&P 1.5 pct, Nasdaq 1.4 pct
By Angela Moon
NEW YORK, Nov 19 U.S. stocks rose more than 1
percent on Monday, rebounding after last week's decline, on
signs of progress in talks to resolve the fiscal crunch.
Adding to optimism, U.S. home resales unexpectedly rose in
October, a sign that the slow improvement in the job market is
helping the housing sector.
In another positive report on housing, sentiment among home
builders rose for a seventh straight month in November to the
highest level in over six years as demand for new homes
Over the weekend, leading Democratic and Republican
lawmakers expressed confidence that they could reach a deal to
avert the "fiscal cliff" even as they laid down markers on
raising taxes and spending cuts that may make any agreement more
"While not our base case, we believe that stocks could rise
substantially if U.S. policymakers can negotiate a 'grand
bargain' that credibly addresses long-term tax, spending and
entitlement reforms," said Jonathan Golub, strategist at UBS in
"Unfortunately, our sense is that the most important
structural issues will be pushed off into the future, leaving
significant uncertainty about the long-term direction of the
economy and corporate profits."
Reflecting the uncertainty, UBS introduced a cautious
outlook with a year-end 2013 price target on the S&P 500 at
The Dow Jones industrial average was up 152.40
points, or 1.21 percent, at 12,740.71. The Standard & Poor's 500
Index was up 20.35 points, or 1.50 percent, at 1,380.23.
The Nasdaq Composite Index was up 39.37 points, or 1.38
percent, at 2,892.50.
U.S. financial markets will be closed on Thursday for the
Stronger-than-expected earnings also contributed to the
Shares of Lowe's Cos Inc, the world's No. 2 home
improvement chain, rose 7.3 percent to $34.28 after the company
reported higher-than-expected quarterly profit and raised its
full-year sales forecast.
Shares of Tyson Foods Inc jumped 7 percent to $18.07
after the company reported higher-than-expected quarterly
earnings, helped by higher prices.
But Intel shares fell 0.7 percent to $20.06 on news
that the company's Chief Executive Paul Otellini will retire in
May, and that the board will consider internal and external
candidates to choose Otellini's successor.