NEW YORK (CNN/Money) -
U.S. stock markets managed to rally for the second straight session Tuesday, as rangebound trading gave way to a small surge in the last hour, led by blue chips.
The Dow Jones industrial average (up 52.07 to 10381.70, Charts) added 0.5 percent, and the Standard & Poor's 500 (up 4.53 to 1127.00, Charts) index and the Nasdaq composite (up 8.06 to 2000.63, Charts) both gained 0.4 percent.
Market breadth was positive on light volume.
Stocks surged Monday on a combination of bullish corporate news, lower oil prices and relief buying after several down weeks. But trading Tuesday was more muted, as investors took in a higher-than-forecast consumer confidence report, which nevertheless showed confidence weakening.
Wednesday brings a pair of economic reports. Due shortly after the open, Chicago PMI, a regional manufacturing read, is thought to have fallen to 61.0 in March, according to Briefing.com estimates, from 63.6 in February. Wednesday also brings the February read on factory orders, thought to have risen 1.5 percent after falling 0.5 percent in January.
Also due early Wednesday: earnings reports from retailers Best Buy (BBY: up $0.11 to $48.40, Research, Estimates) and Circuit City (CC: down $0.26 to $10.70, Research, Estimates). Best Buy is thought to have earned $1.39 per share, up from $1.16 per share a year earlier, according to a consensus of economists surveyed by First Call. Circuit City is thought to have earned 36 cents per share, unchanged from a year earlier.
But the week's biggest news is the monthly payrolls report, due out Friday before the open.
"Friday's payrolls number is certainly the week's biggest news, and you may see some hesitation ahead of that," said Tom Schrader, managing director of equity trading at Legg Mason.
Due before the market open Friday, the March unemployment rate is expected to hold steady at 5.6 percent, according to economists surveyed by Briefing.com. But employers probably added 123,000 jobs to payrolls, according to the forecasts, after adding a surprisingly low 21,000 last month.
"The consumer confidence (index) this morning was better than expected, and the lack of negative pre-announcements has given people the impression that first-quarter earnings are going to be good," Schrader added.
For many bulls, the labor market is the last laggard in an economic recovery, and therefore, a strong payroll number would be a big positive. But if the payroll number is too strong, it could create worries that interest rates could start rising sooner than expected, as rising rates tend to make stocks less attractive relative to some other investments.
What moved
Shares of Dow component American Express (AXP: up $1.05 to $51.91, Research, Estimates) gained around 2 percent on news that it will follow MasterCard and Visa by offering credit cards in China. Amex said it has set a deal with the Industrial and Commercial Bank of China to offer a dual-currency credit card.
General Motors (GM: up $1.00 to $47.60, Research, Estimates) gained 2.1 percent after a Wall Street Journal article quoted the company's top market analyst as stating that March sales would be up as much as 10 percent from February.
Shares of PepsiCo (PEP: up $1.07 to $53.28, Research, Estimates) rose about 2 percent after the company raised its first-quarter earnings forecast, saying it now expects to earn 46 cents a share in the quarter, compared with the current analyst consensus for shares of 44 cents.
Among other movers, shares of two biotechs were unusually active on the Nasdaq.
Vascular Solutions (VASC: up $3.17 to $9.78, Research, Estimates) soared nearly 48 percent after the company received regulatory approval for a treated bandage that helps stop bleeding. The product was developed for use in trauma centers and other emergency treatment facilities.
NPS Pharmaceuticals (NPSP: up $1.95 to $28.89, Research, Estimates) gained 7.2 percent in active trading after it said that a late-stage study of its drug was effective in reducing the rate of new or worsened fractures in post-menopausal women with osteoporosis.
On the downside, Intel (INTC: down $0.26 to $27.43, Research, Estimates) slid just under 1 percent after agreeing to pay $225 million to settle claims that it infringed on competitor Intergraph's patents. The news sent shares of Intergraph (INGR: up $3.28 to $23.67, Research, Estimates) up nearly 17 percent.
On the New York Stock Exchange, advancers beat decliners by more than two to one as 1.30 billion shares changed hands. On the Nasdaq, losers edged winners by nearly three to two as 1.58 billion shares traded.
After the market opened Tuesday, the Conference Board's March tally on consumer confidence came in a bit above estimates, although below the previous month. Confidence slipped to 88.3 from an upwardly revised 88.5 in February. Economists surveyed by Briefing.com were expecting a dip to 86.
The results seem to support other data suggesting that consumer spending was solid in March, significant because consumer spending fuels two-thirds of the U.S. economy. The confidence number is also being watched for hints about Friday's March employment number.
Treasury prices edged lower, pushing the 10-year note yield up to 3.89 percent from 3.88 late Monday. Bond prices and yields move in opposite directions. The dollar inched higher versus the yen and was weaker versus the euro.
Among commodities markets, NYMEX light crude oil futures gained 80 cents to settle at $36.25 a barrel. COMEX gold gained $4.60 to settle at $422.80.
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