4:10pm: Is today's confidence overdone?
The Nasdaq continued to lead stocks higher in the afternoon on Tuesday buoyed by strong economic data.
At the close, the Nasdaq had added 1.7% at 13,556 points, the S&P 500 was up 1.1% at 4,378 points, and the Dow Jones had gained 0.6% at 33,927 points.
The small-cap Russell 2000 index finished the day up 1.7% at 1,855 points.
“As we end a first half which was expected to see an economy entering recession and a weak stock market, which didn’t happen, with a strong economy and the S&P 500 on track to be up 15%, it’s interesting to speculate if today’s confidence is perhaps overdone as we enter the second half,” commented FOREX.com analyst Paul Walton.
12:05pm: Stocks rebound as Dow looks to end six-session losing steak
US stocks were higher in noon trading following better-than-expected data on durable goods, consumer confidence and new home sales.
At midday, the Dow rose 152 points to 33,866, while the S&P 500 added 31 points at 4,359 and the tech-heavy Nasdaq gained 134 points to 13,470.
“All we’ve been hearing about this year is the pending recession, but the truth is the economy is on solid footing and the odds of a recession decreases with each piece of economic data,” Carson Group chief market strategist Ryan Detrick said.
Notable movers included shares of Walgreens Boots Alliance Inc, which slid 9% after the retail pharmacy chain lowered its full-year earnings guidance.
9:47am: Investors look to reverse Monday's losses
Shortly after the opening bell, the Dow was up 125 points, 0.4%, to 33,839, the Nasdaq Composite improved 54 points, 0.4%, to 13,380 and the S&P 500 added 16 points, 0.4%, to 4,345.
Investors reacted well to durable goods orders coming in higher than expected, even as the Case-Shiller home price index indicated unexpected price resilience. Consumer confidence data and new home sales numbers are expected to be released at 10 am.
7:45am: Traders await economic data
US stocks are expected to start mixed on Tuesday after a recent run of falls as investors eye the next batch of economic data and ready themselves for the end of June and the second quarter.
In pre-market trading, futures for the Dow Jones Industrial Average (DJIA) were down 0.1%, but those for the S&P 500 added 0.1%, and contracts for the Nasdaq-100 rose 0.4%.
The moves follow another losing session on Wall Street on Monday, when the Nasdaq Composite led the way down, dropping nearly 1.2% as investors took profits on some technology stocks. Meanwhile, the S&P 500 closed 0.5% lower.
The DJIA ended down only 0.04%, however, that was the sixth consecutive negative session for the blue-chip index, its longest losing streak since September 2022.
Despite Monday’s leg down, the S&P 500 and Nasdaq are still on pace to finish June more than 3% higher, while the DJIA is poised for a monthly advance of nearly 2.5%.
Among the batch of US economic data due for release on Tuesday are home sales, durable goods and consumer confidence.
TickMill Group’s market analyst Patrick Munnelly commented: "Stateside, durable goods orders for May are anticipated to show a sharp decline, largely influenced by volatility in the transportation sector. However, orders from other durable goods producers are projected to have a modest increase compared to the previous month, although still below last year's levels, indicating the challenges faced by manufacturing sectors worldwide.
"On a positive note, non-defense capital goods orders and shipments have experienced significant growth since the beginning of the year, potentially driven by incentives provided by the Biden administration to promote green investment.
"US consumer confidence measures continue to lag behind pre-Covid levels, likely reflecting ongoing concerns about inflation and higher interest rates. The June reading of the University of Michigan's consumer sentiment indicator showed a larger-than-expected rebound from the low recorded in May but remained below the levels seen at the beginning of the year.
"Today, the Conference Board's consumer confidence reading for June is also expected to show an increase, although it should be noted that the two measures do not always move in sync."