Wall Street gains on data, rising oil prices

NEW YORK (Reuters) - Stocks rose on Wednesday on upbeat economic data and rising oil prices that sent energy shares up more than 2 percent.

Gains were broad-based but the energy sector index was the strongest among 10 S&P 500 sectors, rising 2 percent.

The healthcare sector was the second-biggest gainer, up 1.4 percent, on news that U.S. health regulators approved Arena Pharmaceuticals Inc's pill to treat obesity, the first weight-loss drug in 13 years. Arena shares soared 43 percent to $12.53.

Easing concerns about tepid economic growth, data showed demand for long-lasting U.S. manufactured goods rose more than expected in May.

In another report, signed contracts for home purchases jumped in May to the most in seven months, the latest sign of improvement in a sector that has been a drag on the economy.

The PHLX housing sector index rose 2.4 percent, taking the year-to-date gains near 26 percent. Shares of Lennar Corp , the third-largest U.S. homebuilder, rose 4.5 percent to $28.62 after it reported a rise in new orders for the fifth straight quarter.

But investors remained hesitant to make big bets ahead of the euro zone leaders' summit on Thursday. Few anticipate anything concrete to emerge from the two-day meeting after German Chancellor Angela Merkel said debt sharing, an idea backed by France, Italy and Spain, would not happen in her lifetime.

"We are in a market now, where in the absence of bad news, the market just goes higher and then with bad news, the gains are instantly erased," said Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab.

"I think building your position now (ahead of the EU summit) is pretty dangerous, without clearly hedging your portfolio."

With Spanish 10-year yields near the 7 percent level, the euro zone's fourth-largest economy appears set to be the next country to seek a bailout.

The Dow Jones industrial average was up 94.04 points, or 0.75 percent, at 12,628.71. The Standard & Poor's 500 Index was up 12.13 points, or 0.92 percent, at 1,332.12. The Nasdaq Composite Index was up 23.35 points, or 0.82 percent, at 2,877.41.

Shares of Vivus Inc and Orexigen Therapeutics Inc jumped following the FDA approval of Arena's obesity drug. The companies are also hoping to bring their medicines to market. Vivus shares were up 9.3 percent to $28.79 and Orexigen Therapeutics rose 27 percent to $5.17.

Some of Wall Street's top analysts published their research on Facebook Inc , and most are cautiously optimistic. Facebook shares fell 1.4 percent to $32.65 after gaining more than 20 percent in the past two weeks.

A U.S. judge on Tuesday backed Apple's request to stop Samsung <005930.KS> selling its Galaxy Tab 10.1 tablet in the United States, giving the iPhone maker a significant win in the global smartphone and tablet patent wars. Apple shares edged 0.5 percent higher.

Google shares gained 1.4 percent to $572.58 after reports the company will soon unveil a tablet co-branded with Taiwan's Asustek Computer <2357.TW> and priced to compete with Amazon's Kindle Fire.

(Reporting By Angela Moon, editing by Kenneth Barry)