NEW YORK (CNNMoney.com) -- Blue chips held on to gains heading into midday, with the Dow still flirting with an all-time high thanks to a surprisingly strong read on consumer confidence.

But the gains were limited and the Nasdaq composite slipped amid see-sawing oil prices, a jump in Treasury bond yields and some investor reluctance after the recent advance.

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The Dow Jones industrial average (up 23.78 to 11,599.59, Charts) added 0.2 percent about 2-1/2 hours into the session. On Monday, the blue-chip indicator ended the session within 150 points of its all-time high of 11,722.98, hit on Jan. 14, 2000.

The broader Standard & Poor's 500 (up 1.60 to 1,327.97, Charts) index also added 0.2 percent. On Monday it closed at a fresh 2006 high and its highest point since Feb. 2001.

The Nasdaq composite (down 5.30 to 2,243.77, Charts) lost a few points, struggling to stay positive after leading the rally in the previous session.

Stocks surged Monday on bets that the slowdown in the economy, the pullback in energy prices and the decline in bond yields mean the Federal Reserve won't lift interest rates again any time soon.

Such bets remained in place Tuesday and were further enhanced by a strong read on consumer confidence. But with the Dow and S&P 500 pushing up against multi-year highs, gains were tentative.

A strong read on September consumer confidence gave investors some support. Released shortly after the start of trade, the index rose to 104.5 in the month, topping forecasts for it to rise to about 102.5 from an upwardly revised 100.2 in August.

The strong report was not a real surprise, considering that it covered a period when gasoline prices fell and stocks did well, said Jeff Kleintop, chief investment strategist at PNC Advisors.

What is notable about the report, Kleintop said, is that although it shows the consumer is feeling better, it doesn't suggest consumer spending is likely to ramp up enough to recharge the economy and force the Fed to raise rates again. Consumer spending fuels roughly two-thirds of the economy.

"The report was good news, showing the consumer is slowing, but not collapsing, even with the slowdown in the housing market," he said. "For now, it was what the stock market wanted to hear."

Home builder Lennar said Tuesday morning that quarterly earnings fell from a year ago and warned that fourth-quarter earnings would miss analysts' estimates and its own earlier forecast.

Lennar (down $0.49 to $46.39, Charts) shares dipped less than 1 percent, as investors by now are getting used to bad news out of the home building sector.

After the close Monday, home improvement retailer Lowe's (up $0.10 to $28.94, Charts) said it will post full-year earnings at or near the low end of its previous guidance as a result of weaker than expected sales. Shares were little changed Tuesday.

Also late Monday, chipmaker PMC-Sierra (down $0.64 to $5.91, Charts) warned that third-quarter revenue will be in a range lower than it previously forecast due to weaker business activity. Shares slumped 9.5 percent.

A number of chipmakers declined, with the Philadelphia Semiconductor (down 6.33 to 454.24, Charts) index, of the SOX, falling 1 percent.

Oil and gold stocks jumped, giving the broader market some support.

Exxon Mobil (up $0.89 to $65.95, Charts) and Valero Energy (up $1.02 to $49.17, Charts) gained, while the Amex Oil (up 17.86 to 1,059.26, Charts) index added 1.4 percent.

A surge in gold stocks lifted the Amex Gold Bugs (up $7.33 to $298.58, Charts) index 2.5 percent.

Market breadth was mixed. On the New York Stock Exchange, winners beat losers 8 to 7 on volume of 730 million shares. On the Nasdaq, decliners topped advancers by 5 to 4 as 915 million shares changed hands.

Oil prices reversed course, turning a bit higher after falling in the morning. U.S. light crude oil for November delivery rose 40 cents to $61.85 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $1.20 to $597.10 an ounce.

Treasury prices slipped after rising for a week. The decline lifted the yield on the benchmark 10-year note to 4.58 percent from 4.54 percent late Monday. Bond prices and yields move in opposite directions.

In currency trading, the dollar gained versus the yen and euro.

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