By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks Tuesday finished a choppy
trading session higher, boosted by stronger-than-expected consumer
confidence data. The main indexes recorded small gains after two
days of losses.
The S&P 500 (SPX) ended the day 8.19 points, or 0.4%, higher
at 1,865.63. The Dow Jones Industrial Average (DJI) gained 91.19
points, or 0.6%, to 16,367.88.
The Nasdaq Composite (RIXF), finished the day higher after
briefly dipping into red. The tech-heavy index gained 7.88 points,
or 0.2%, to 4,234.27.
"Today's economic data were as expected and market reaction has
been muted," said Brad Sorensen, director of market and sector
research at Schwab Center for Financial Research.
"Markets are waiting for a catalyst to take them higher or
lower, as things are once again quiet overseas, earnings season has
not started yet and valuations are not too low or too high," he
added.
Read the recap of live stock market coverage.
Investors welcomed a stronger reading on consumer confidence.
Led by rosier expectations, a gauge of U.S. consumer confidence
jumped this month to the highest level in more than six years,
blowing past a forecast from economists.
A duo of housing data were in line with expectations.
U.S. home prices slipped in January for a third straight month
after a particularly harsh winter, according to data released
Tuesday, as strong year-over-year appreciation showed signs of
moderating. New U.S. homes sold at an annual rate of 440,000 in
February, down 3.3% from January's one-year high, the government
said Tuesday. Read also: Housing market's pricing recovers unevenly
across the U.S.
Markets were reassured by comments from Philadelphia Fed
president Charles Plosser, who said in an interview with CNBC that
short-term interest rates should hit 4% at the end of 2016. He also
said the market reaction to Federal Reserve Chairwoman Janet
Yellen's comments after last week's Federal Open Market Committee
meeting was "puzzling." He said her timetable of a rate hike six
months after the end of bond buying "wasn't a wildly unexpected
time frame." Her comments sparked a selloff for stock markets last
Wednesday.
Among individual stocks, Plug Power Inc. (PLUGD) surged 49% to
$8.48 after chief executive Andy Marsh told MarketWatch that he
will be announcing a deal with a global automaker in two to three
weeks.
Rival FuelCell Energy Inc. (FCEL) and Ballard Power Systems Inc
(BLDP) also rose in tandem, both closing up 20% and 32%
respectively.
In earnings news, McCormick (MKC) shares rallied 5.5% after the
spice maker on Tuesday reported fiscal first-quarter earnings ahead
of a forecast.
Walgreen Co. (WAG) rose 3.3% after the company reported its
fiscal second-quarter earnings, which fell slightly from the
year-earlier period. The drugstore chain said it would close 76
stores later this year.
Shares of Sonic Corp. (SONC) rallied 11% after the company
posted a 15% profit gain.
Shares of Carnival Corp (CCL) dropped more than 5% after the
cruise company reported that it swung to a fiscal first-quarter
loss. Its outlook for the next quarter came in below Wall Street's
expectations.
Himax Technologies Inc. (HIMX) sank 11% after Bank of America
Merrill Lynch downgraded the semiconductor maker to underperform,
saying the highly competitive market will make margin expansion
difficult for Himax, according to news reports.
In other markets, stocks in Asia showed a modest pullback, as
investors continued to mull downbeat China manufacturing data from
the weekend and a slightly disappointing Markit preliminary U.S.
purchasing managers index. European stocks closed higher, shrugging
off soft German business-confidence data.
Gold prices (GCM4) were little changed. Oil (CLM4) prices ticked
down. The ICE dollar index (DXY) , which measures the U.S. unit
against a basket of six major rivals, rose to 79.94, from 79.923
late Monday.
More must-reads from MarketWatch:
Strategists downbeat on small caps
Why Berkshire Hathaway will stomp small caps
44 stocks on takeover target radar: Morgan Stanley
Subscribe to WSJ: http://online.wsj.com?mod=djnwires