Stocks surge in morning trading
Stronger-than-expected manufacturing and housing reports drive morning advance.
NEW YORK (CNNMoney.com) -- Stocks jumped Wednesday morning after better-than-expected reports on durable goods orders and new home sales helped investors recharge the rally.
The Dow Jones industrial average (INDU) gained 180 points, or 2.4%, 35 minutes into the session. The S&P 500 (SPX) index rose 19 points, or 2.4%. The Nasdaq composite (COMP) added 37 points, or 2.4%.
Art Hogan, chief market strategist at Jefferies & Co., said the markets, which have seesawed for two days, were trying to test the validity of Monday's massive rally.
"The million dollar question is, 'Are we in a bear rally that is coming to an end, or are we in the middle of something sustainable?'," said Hogan.
Dave Rovelli, managing director for Canaccord Adams, said that some investors are focused on the S&P's ability to stay at or exceed 804, a level that it has not held in some time.
"That's the magic number that everyone's watching," said Rovelli. "We have to close above it for at least three days. If we can't stay above it, that's the sign of a bearish market."
Economy: The Census Bureau reported that durable goods orders - an important gauge in measuring manufacturing - rose 3.4% in February, trouncing expectations. Orders were expected to decline 2.5% in February, according to a consensus of estimates from Briefing.com.
The Bureau also revised its figure for January to a decline of 7.3%, from the previously reported decline of 4.5%.
February new home sales rose at an annual unit rate of 337,000 versus a revised 322,000 in the previous month. Sales were expected to rise at a 300,000 unit annual rate, according to a consensus of forecasts from Briefing.com.
Also on tap is the U.S. government's weekly report on fuel supplies, due out at 10:30 a.m. ET.
Obama: In a primetime news conference Tuesday, Obama said there would be no "quick fixes" for the recession and that it would take time for the economy to recover.
But he also insisted his administration has a strategy in place to "attack this crisis on all fronts." (Full story)
Treasury plan: Earlier this week, Treasury Secretary Tim Geithner unveiled a plan to remove troubled assets from the balance sheets of banks by partnering with private investors. (Full story)
Geithner was speaking Wednesday morning on the Obama administration's plan for battling the economic and financial crises at the Council on Foreign Relations in New York.
World markets: International markets were lower, trailing the Tuesday declines on Wall Street. Japan's Nikkei posted modest losses while Hong Kong's Hang Seng index tumbled 2%. In Europe, London's FTSE, the XETRA-DAX in Frankfurt and the CAC in Paris were lower.
Oil and money: Oil prices backed off their gains from Tuesday, falling $1.72 a barrel to $52.26. The dollar slipped against the euro, but edged up versus the yen and the British pound. 
