Wall Street surged higher Wednesday as the Dow Jones industrials rose over 12,500 for the first time.

The Dow industrial average climbed 102.94, or 0.83 percent, to a closing record of 12,510.57.

Broader stock indicators also gained. The Standard & Poor's 500index was up 9.94, or 0.70 percent, at 1,426.84, and the Nasdaq composite index rose 17.71, or 0.73 percent, to 2,431.22.

A Commerce Department report that showed sales of new homes rose in November while the backlog of unsold homes fell for a fourth straight month, providing hope that the serious slump in housing could be ending.

Shares of home builders rose on the report. Hovnanian Enterprises Inc. rose 46 cents to 33.70 dollars, KB Home was up 97cents at 51.76 dollars.

Shares of Toyota Motor Corp. and Ford gained after a meeting between the companies' top executives sparked investors' hopes for a potential alliance between the companies.

Editor: Donald