Stocks extend gains into 7th day following reports on consumer confidence, home prices

Stocks up for 7th day on housing, confidence data

NEW YORK — Stocks extended their gains into a seventh day following better readings on home prices and consumer confidence.

The reports Tuesday came in largely as expected, showing a continuing gradual improvement in the economy. The Conference Board said its index of consumer confidence rose to 52.9 in December from 49.5 in November. That was slightly better than the reading of 52 economists had forecast.

The index is still a long way from what is considered healthy. A reading of 90 or more signals a solid economy. However, the index has risen significantly from a historic low of 25.3 in February.

Earlier Tuesday, Standard & Poor’s/Case-Shiller said its home price index rose for a fifth straight month in October, edging up 0.4 percent. The index was off 7.3 percent from October last year, roughly in line with expectations.

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.

Trading was quiet, as it has been in recent days, as many investors took vacation between the Christmas and New Year’s Day.

Even in light volume though, the market has managed to climb, adding to the big gains logged since stocks hit 12-year lows in March, amid improving economic data. The Standard & Poor’s 500 index has posted gains for six straight days, rising 2.3 percent to reach a new high for the year.

“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.

In morning trading, the Dow Jones industrial average rose 23.05, or 0.2 percent, to 10,570.13. The Standard & Poor’s 500 index rose 1.32, or 0.1 percent, to 1,129.10, while the Nasdaq composite index fell 0.15, or 0.01 percent, to 2,290.93.

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.

Speiss said he expects to see the market build on its recent gains at the start of the new year and through the first quarter.

“We’re going to be building momentum,” he said.

Government bonds inched higher Tuesday ahead of an auction of $42 billion of five-year notes. The Treasury Department is issuing a total of $118 billion of debt this week as part of its ongoing efforts to fund its stimulus programs.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.83 percent from 3.85 percent late Monday.

The dollar slipped against other major currencies. Oil prices added 4 cents to $78.81 a barrel on the New York Mercantile Exchange. Gold prices dipped.

About four stocks rose for every three that fell on the New York Stock Exchange, where volume came to a low 145.1 million shares.

In other trading, the Russell 2000 index of smaller companies rose 0.10, or 0.02 percent, to 633.85.

Overseas, Japan’s Nikkei stock average inched up 0.04 percent and Hong Kong’s Hang Seng index gained 0.1 percent. In afternoon trading in Europe, Britain’s FTSE 100 was up 0.7 percent, Germany’s DAX index added 0.3 percent, and France’s CAC-40 rose 0.6 percent.