U.S. stocks advanced on Tuesday following the release of economic reports that suggested that consumer confidence and home prices are starting to recover.
The market also got a boost from news that U.S. President Barack Obama has nominated Ben Bernanke to chair the Federal Reserve for a second term. The reappointment is expected to gain Senate approval.
The Dow Jones industrial average gained 30 points to 9,539. The S&P500 Index rose 2 points to 1,028 and the NASDAQ added 6 points to 2,024.
In economic news: The Conference Board’s Consumer Confidence Index rose to a read of 54.1 in August, up from 47.4 in July. The rise was way above economist’s expectations for a read of 48.
According to the latest S&P/Case-Shiller house price index, home prices increased 2.9 per cent in the June quarter, the first quarter over quarter improvement in three years.
And the White House released its deficit and economic guidance, saying that it forecasts a federal budget deficit of $9 trillion over the next 10 years and a deficit of $1.58 trillion in 2009.
In company news: Shares in office products company Staples Inc (NASDAQ:SPLS) dropped 1.8 per cent to $21.79. The company posted earnings for the second quarter that met expectations.
Shares in fast food chain Burger King Holdings Inc (NYSE:BKC) gained 6.17 per cent to $18.75. The company reported earnings results for the fourth quarter but did not provide an outlook for the year ahead due to uncertainty in consumer spending. Shares in high-end homewares retailer Tuesday Morning Corporation (NASDAQ:TUES) added 3.6 per cent to $4.60 after reporting a loss for the fourth quarter that was smaller than the year before. The company says it expects the retail environment to continue to be economically difficult and uncertain.
And shares in post-secondary education company Corinthian Colleges Inc (NASDAQ:COCO) rose 7.44 per cent to $18.63 after the company reported fourth quarter earnings that topped analysts estimates. Corinthian also provided a full-year outlook.
Checking the NASDAQ Top 100: Making the most gains overnight was Warner Chilcott which rose 6.27 per cent to $21.69. Wynn Resorts and Bed Bath and Beyond were the next best performers. Looking at the downside, Electronic Arts was the worst performer, down 3.08 per cent to $18.85, followed by Activision Blizzard and Steel Dynamics.
