Rise in home prices helps lift stocks; investors await consumer confidence reading

Stocks mostly higher following housing data

NEW YORK — Stocks are mostly higher Tuesday after a report showing a slight increase in home prices.

The Standard & Poor’s/Case-Shiller home price index rose for a fifth straight month in October, edging up 0.4 percent. However, the index was off 7.3 percent from October last year, roughly in line with what analysts expected.

The index is now up 3.4 percent from its bottom in May, but still almost 30 percent below its peak in April 2006. Only 11 of the 20 cities tracked in the report showed gains.

Later Tuesday morning, the Conference Board will release its consumer confidence index for December. Economists expect the index to increase to 52 from 49.5 in November. While still a long way from what is considered healthy — a reading above 100 signals strong growth — the index has risen significantly from a historic low of 25.3 in February.

Trading has been quiet in recent days, as many investors take vacation between the Christmas and New Year’s holidays. But even in light volume, the market continues to climb, adding to the big gains logged since stocks hit 12-year lows in March, amid improving economic data.

Reports showing an increase in durable goods orders and a decline in claims for unemployment benefits helped spur the market higher last week. On Monday, investors were encouraged by a jump in retail sales.

“If you look at the day-to-day news coming out, it’s been very positive,” said Tim Speiss, chairman of Personal Wealth Advisors practice at Eisner LLP in New York.

The Standard & Poor’s 500 index has risen for six straight days, gaining 2.3 percent to reach a new high for the year.

In early trading, the Dow Jones industrial average rose 27.28, or 0.3 percent, to 10,574.36. The Standard & Poor’s 500 index rose 1.65, or 0.2 percent, to 1,129.43, while the Nasdaq composite index was up 0.11, or roughly unchanged, at 2,291.19.