Stock markets closed with solid gains Wednesday following strong reports on durable goods and housing, but worries over the EU summit remain front and center.
The Dow Jones industrial average added 92 points, or 0.7%, the S&P 500 rose 12 points, or 0.9%, and the Nasdaq gained 21 points, or 0.7%.
Durable goods orders for May increased 1.1% to $217.2 billion. And May pending home sales rose to their highest level in two years. That's the third positive housing report this week, and investors are taking heart.
"These are good data points because housing really demonstrates employment and the durable goods number says businesses are spending," said Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital Group.
Analysts cautioned that the focus will quickly shift across the Atlantic after a key meeting of European leaders gets underway on Thursday.
European leaders are under pressure to announce plans to backstop the debts of struggling nations, while also laying the groundwork for future growth.
The leaders will discuss "building blocks," including an economic stimulus and the formation of a banking union, to address long-term challenges facing the eurozone.
But analyst expectations are low as investors grow more skeptical that anything concrete will emerge from the summit.
"We're expecting it to be another meeting where everyone agrees to work together but nothing will come out of it," said Brian Lazorishak, senior vice president for Chase Investment Counsel. "That's what we've seen for the last few summits, and we're not anticipating any major market news out of this one, either."
Spain has been particularly troublesome recently, with its sky-high borrowing costs and struggling banking sector.