Stocks Close Notably Higher Following Upbeat Consumer Data - U.S. Commentary

(RTTNews) - After fluctuating early in the session, stocks moved notably higher over the course of the trading day on Tuesday. With the upward move on the day, the major averages largely offset the losses posted in the previous session.

The major averages moved roughly sideways going into the close, hovering firmly in positive territory. The Dow climbed 133.47 points or 0.7 percent to 18,228.30, the Nasdaq advanced 48.22 points or 0.9 percent to 5,305.71 and the S&P 500 rose 13.83 points or 0.6 percent to 2,159.93.

Buying interest was generated following the release of a report from the Conference Board showing an unexpected improvement in U.S. consumer confidence in the month of September.

The Conference Board said its consumer confidence index jumped to 104.1 in September from an upwardly revised 101.8 in August.

The increase came as a surprise to economists, who had expected the index to drop 98.8 from the 101.1 originally reported for the previous month.

"Consumer confidence increased in September for a second consecutive month and is now at its highest level since the recession," said Lynn Franco, Director of Economic Indicators at The Conference Board.

She added, "Overall, consumers continue to rate current conditions favorably and foresee moderate economic expansion in the months ahead."

Meanwhile, traders were also digesting last night's first presidential debate between Hillary Clinton and Donald Trump.

While some pundits gave the edge to Clinton, the debate did not seem to feature any substantial blows that will lead to a significant shakeup in the race for the White House.

Recent polls have shown Clinton and Trump running neck-and-neck, suggesting that uncertainty about the outcome of the race could prevail for the next several weeks.

Sector News

After seeing notable weakness in the previous session, airline stocks showed a strong move back to the upside. The NYSE Arca Airline Index surged up by 2 percent after ending Monday's trading at its lowest closing level in a month.

Southwest Airlines (LUV), Delta Air Lines (DAL), and American Airlines (AAL) turned in some of the sector's best performances on the day.

Significant strength also emerged among semiconductor stocks, as reflected by the 1.8 percent gain posted by the Philadelphia Semiconductor Index. Integrated Device Technology (IDTI) and Micron (MU) posted standout gains.

Biotechnology, internet, software, and networking stocks also saw considerable strength, while energy and gold stocks came under pressure amid a sharp pullback by commodities prices.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday. Japan's Nikkei 225 Index advanced by 0.8 percent and Hong Kong's Hang Seng Index jumped by 1.1 percent, while Australia's All Ordinaries Index fell by 0.5 percent.

Meanwhile, the major European markets ended the day modestly lower. While the German DAX Index dipped by 0.3 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both edged down by 0.2 percent.

In the bond market, treasuries extended the upward trend seen over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.3 basis points to a three-week low of 1.556 percent.

Looking Ahead

A report on durable goods orders in the month of August is likely to attract attention on Wednesday along with speeches by several Federal Reserve officials.

Traders are likely to keep a close eye on Fed Chair Janet Yellen's testimony before the House Financial Services Committee, although the hearing will focus on the Fed's supervision of big banks.