U.S. stocks rallied Wednesday, June 27 following strong reports on durable goods orders and housing. But trading could turn choppy ahead of a key two-day Europe summit.

Durable goods orders for May increased 1.1% to $217.2 billion. And pending home sales rose to their highest level in two years in May. That's the third positive housing report this week, and investors are taking heart.

"These are good data points because housing really demonstrates employment and the durable goods number says businesses are spending," said said Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital Group.

The Dow Jones industrial average added 82 points, or 0.7%, the S&P 500 rose 9 points, or 0.7% and the Nasdaq gained 18 points, or 0.6%, CNNMoney reported.