U.S. stocks closed higher for a third day Tuesday after reports on inflation and new home construction eased fears the Federal Reserve (Fed) is about to slow the pace of its stimulus program. In U.S. economic news, a report on consumer prices showed that inflation remains subdued, while a report on the housing market was mixed. The central bank is not expected to announce any major change in policy at the end of its latest two-day meeting, which started Tuesday. But investors are hoping Chairman Ben Bernanke will provide some clues about when the central bank could begin tapering the pace of its bond purchases. Bernanke is set to speak at a news conference Wednesday afternoon. In international economic news, the president of Cyprus has asked the European Union to renegotiate the terms of its $13 billion financial bailout, according to the Financial Times. Following a summit in Ireland, U.S. President Barack Obama and other leaders from the world's top eight economic powers announced new measures to curb tax evasion and money laundering. In corporate news, Sony shares climbed 3 percent after Dan Loeb's Third Point hedge fund increased its stake and is upping the pressure on the company to agree a partial spin-off of its entertainment business. Nokia shares rose after a report in the Financial Times raised speculation about a potential merger with China's Huawei. Meanwhile, shares of BlackBerry rose on rumors about a deal with Lenovo. The dollar rose against the pound, but fell versus the euro and the yen. Light sweet crude oil for July delivery gained 67 cents to $98.44 a barrel on the New York Mercantile Exchange. Gold futures dropped $16.20 to $1,366.90 an ounce. The Dow Jones industrial average rose 138.38, or 0.91 percent, to 15,318.23. The broader Standard & Poor's 500 index gained 12.77, or 0.78 percent, to 1,651.81. The technology-heavy Nasdaq composite index moved up 30.05, or 0.87 percent, to 3,482.18.
