NEW YORK (CNNMoney.com) -- Stocks resumed the advance Tuesday morning after a positive report from the housing industry fueled bets that the economy is closer to stabilizing.
The Dow Jones industrial average (INDU) added 16 points, or 0.2%, around 90 minutes into the session. The index briefly turned positive for the year for the first time since Jan. 7.
The S&P 500 (SPX) index gained 1 point or 0.1%. The Nasdaq composite (COMP) gained 5 points or 0.3%.
On Tuesday, the National Association of Realtors reported that pending home sales jumped 6.7% in April, and posted year-over-year increases in ever region but the West.
Stocks in the U.S. and abroad jumped Monday after upbeat reports on manufacturing, and construction and consumer spending added to hopes that the pace of the recession is slowing.
Such bets have helped lift the stock market over the past three months, after the Dow and S&P 500 slumped to more than 12-year lows.
After a sluggish start Tuesday morning, stocks resumed the advance.
Financials: Three more banks announced plans to repay the government bailout money.
JPMorgan Chase (JPM, Fortune 500) said late Monday it plans to raise $5 billion towards the $25 billion in owes the government. American Express (AXP, Fortune 500) also said late Monday that it will raise $500 million toward the $3.4 billion it owes.
Morgan Stanley (MS, Fortune 500) said Tuesday that it plans to raise $2.2 billion.
The Federal Reserve is expected to announce next week which of the 19 banks that it stress tested are in good enough shape to pay back bailout funds. In order for banks to pay back the government, they must prove that they can raise money without depending on guarantees against losses provided by the Federal Deposit Insurance Corp. (FDIC).
In other financial news, Citigroup (C, Fortune 500) will withhold severance payments worth tens of millions of dollars to five former executives, according to a published report.
Citigroup will be kicked out of the Dow, with home, auto and commercial insurer Travelers (TRV, Fortune 500) to take its place starting Monday June 8. The government now owns a large stake in Citi and the company is undergoing a restructuring.
GM: General Motors announced the sale of its Hummer truck brand one day after it filed for bankruptcy protection, bringing an end to an era for the automaker.
The bankruptcy is seen as necessary by lawmakers who say the industry requires a broad overhaul. GM's bankruptcy will result in 20,000 job losses and the closure of 12 plants.
GM is now trading under the symbol GMGMQ, as of Tuesday. It will be removed from the S&P 500 at the close of trading Tuesday and is also being kicked out of the Dow. Cisco Systems (CSCO, Fortune 500) takes its place starting Monday.
