The U.S. stock market slightly rises as economic data and Bernanke's nomination for reappointment boost investor sentiment.
* Housing prices and consumer confidence data improve investor confidence.
* Bernanke's nomination for reappointment overshadows concerns about the budget deficit.
* The Dow Jones Industrial Average rose by 0.32%, while the S&P 500 and Nasdaq indices increased by 0.24% and 0.31%, respectively.
According to Reuters, on August 25, the U.S. stock market closed higher on Tuesday, as economic data and the news of Bernanke's nomination for reappointment as Federal Reserve Chairman reassured investors, offsetting concerns about the U.S. budget deficit.
The Conference Board reported on Tuesday that the U.S. Consumer Confidence Index rose to 54.1 in August, with the July index revised up to 47.4 from a previous value of 46.6. Analysts surveyed by Reuters had estimated a median value of 47.5 for the August Consumer Confidence Index.
The S&P/Case-Shiller Home Price Index released on Tuesday showed that the index for June, covering 20 metropolitan areas in the U.S., rose by 1.4% compared to May, nearly three times the increase in May, which was 0.5%, marking the first increase in nearly three years.
Consumer confidence data and earnings reports helped drive retail stocks higher, with women's apparel retailer Chicos FAS Inc (CHS.N: Quote) reporting strong earnings, rising 7.6% to $12.79, and discount retailer Big Lots Inc (BIG.N: Quote) surging 6.5% to $25.60.
Macy's Inc (M.N: Quote) rose 3.5% to $15.85, and the S&P Retail Index increased by 1.8%.
The component of economic recovery is the rebound in consumer spending. The market is now hopeful that strong consumer confidence data will lead to improved consumer spending data, according to Keith Springer, President of Financial Advisory Services.
Homebuilder stocks strengthened, with Lennar Corp (LEN.N: Quote) rising 2.8% to $14.97, and KB Home (KBH.N: Quote) increasing by 3.3% to $18.08.
The largest U.S. homebuilder, Pulte Homes Inc (PHM.N: Quote), jumped 3.5% to $13.06, and the Dow Jones Home Construction Index rose by 3%.