Stocks recharge after rout
Investors start off the last day of the quarter on the right foot despite report showing that home prices fell to record lows.
NEW YORK (CNNMoney.com) -- Stocks gained Tuesday as investors tiptoed back into equities after a two-session retreat, on the last trading day of a choppy quarter on Wall Street.
The Dow Jones industrial average (INDU) rose 49 points, or 0.6%. The S&P 500 (SPX) index gained 5 points, or 0.6%. The Nasdaq composite (COMP) rose 18 points, or 1.2%.
Stocks slumped Monday amid worries about the auto and bank industries. The blue-chip Dow sank 254 points, or 3.3%.
But investors appeared ready to recoup some of those losses Tuesday, which brings an end to the first quarter.
"A lot of that is just the fear subsiding a bit," said Dan Cook, senior market analyst at IG Markets in Chicago, noting that Monday's trading was consumed by anxiety, as well as anger towards the automakers and the U.S. government's bailout plan. "It was more emotional than driven by anything substantial."
Manus Cranny, market analyst for MF Global in London, said the markets were partly recovering from their "overreaction" to Monday's "shock news" that "the U.S. government is not prepared to write a blank check for Detroit."
Going forward, he said investors will focus on President Obama's meeting in Europe at the G20 summit.
G-20: President Obama is headed to London for the G-20 summit of world leaders. Leaders will discuss ways to fix the global financial crisis at the meeting on Thursday.
Economy: A slew of economic reports are on tap for Tuesday, including the latest readings on home prices.
The S&P/Case-Shiller Home Price Index showed record declines in home prices. The 20-city index declined 2.8% month-to-month and fell 19% year-to-year. The 10-city index slipped 2.5% month-to-month and dropped 19.4% year-to-year.
Reports on the Chicago PMI, a regional measure of manufacturing, and consumer confidence for the month of March will be released after the bell.
Cook of IG Markets said he is disregarding the consumer confidence report because "if any consumers are confident, it means they haven't read the papers."
Autos: President Obama appointed an auto czar Monday who will focus on funneling federal funds to people and places hurt by the auto industry meltdown.
The move came after the White House said automakers General Motors (GM, Fortune 500) and Chrysler would have to do more in order to receive further aid and forced out GM's chairman Rick Wagoner. GM shares fell 11% Tuesday.
World markets: Global stock markets were mostly higher. In Asia, auto shares gained across regional markets. Japan's Nikkei, however, ended the session about 1.5% lower. European stocks advanced in afternoon trading.
Oil and money: Oil for May delivery rose 29 cents to $48.70 a barrel on the New York Mercantile Exchange, after falling 7% Monday. The dollar fell versus the euro and the British pound but rose against the yen. 
