Upbeat corporate results and a larger-than-forecast increase in home prices lifted U.S. stocks on Tuesday, as Wall Street pursued a fourth straight day of gains.
Home prices in U.S. metropolitan areas rose more than expected in May, offering some reassurance after recent weak housing numbers pointed to a softening of the housing market.
Dow component DuPont & Co's
DuPont rose 4.5 percent to $40.85, while U.S.-traded shares of UBS jumped 7.7 percent to $16.32.
Earnings have been very strong and the forecast S&P earnings figure continues to be strong, said Kevin Caron, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey. With the S&P at 1,115 -- back above its 200-day moving average -- that is just over 12 times forward-looking earnings. That is a fairly attractive multiple, particularly with very low bond yields, he said.
The Dow Jones industrial average <.DJI> gained 39.96 points, or 0.38 percent, to 10,565.39. The Standard & Poor's 500 Index <.SPX> rose 4.55 points, or 0.41 percent, to 1,119.56. The Nasdaq Composite Index <.IXIC> added 9.06 points, or 0.39 percent, to 2,305.49.
The S&P 500 traded above its 200-day moving average after breaking above the level at Monday's close for the first time in more than a month.
Other technical measures, including the moving average convergence-divergence and momentum, continued to show bullish signals for the three top stock indexes.
A pulse of investor sentiment, the VIX market volatility index <.VIX>, fell more than 3 percent to 22.73 on Monday, breaking below its 200-day moving average of 23.38. The VIX edged up 0.01 percent to 22.75 in early Tuesday trading.
The Conference Board's consumer confidence index for July is expected to have fallen to 51.0 from 52.9. The data, due at 10 a.m. EDT, will be closely watched following a slump in the latest Reuters/University of Michigan sentiment survey.
(Editing by Jeffrey Benkoe)