Stocks rose on Tuesday due to an improving housing market, with falling oil prices. The Dow Jones industrials increased more than for 120 points.

The National Association of Realtors' index for pending sales of existing homes rose at a seasonally adjusted annual rate of 0.7 percent to 109.3 in February from a reading of 108.5 in January. The data reassured investors that the housing sector, while weak, is not very damaged by the struggling subprime mortgage sector. Fears that subprime lending problems will effect  the rest of the economy have been a big factor behind the market's volatility of the past several weeks.

Wall Street was also relieved that crude oil prices declined as tensions between Britain and Iran eased.

In late morning trading, the Dow increased 124.51, or 1.01 percent, to 12,506.81.

Broader stock indicators also showed a growth. The Standard & Poor's 500 index was up 12.81, or 0.90 percent, at 1,437.36, and the Nasdaq composite index added 30.62, or 1.26 percent, to 2,452.88.