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Wall Street up as Bernanke defends policy, warns on cuts

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NEW YORK (Reuters) – Stocks advanced on Tuesday after Federal Reserve Chairman Ben Bernanke defended the Fed’s bond-buying stimulus before Congress, but he warned forced spending cuts that could be triggered this week represented a headwind for the economy. Gains in homebuilders and other consumer stocks, following strong economic data, kept the S&P 500 up slightly and a 5 percent jump in Home Depot lifted the Dow industrials. The PHLX housing sector index rose 2. 6 percent. . . .

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