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Markets rebound on home prices

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Stocks bounced back following a surge in US home prices and signs of recovery in Europe’s economy. The rise follows two days of whiplash. After strong gains this year, investors are wondering if they should sell now, or wait to see if the rally still has legs, said one investment chief. Tuesday’s advance was driven by new data showing that US home prices rose in December at the fastest pace in six years. In Europe, a gauge of manufacturing and service businesses rose to a 10-month high in January. Estee Lauder rose after earnings beat estimates. Computer Sciences climbed on cost-cutting efforts that were yielding better results than expected.

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