Consumer confidence survey helps US stocks rally
US stocks rebounded on Tuesday after a survey showed consumer confidence is at a nine-year high, a sign Americans will keep spending in the months to come.
The market opened lower after two days of losses but quickly recovered. The consumer confidence report gave major indexes a boost and they displayed a big gain by early afternoon.
Technology companies jumped and solid results from cruise line operator Carnival sent travel-related companies higher.
Energy companies slumped with oil prices as hopes for an international cut in fuel production faded.
US consumer confidence reached its highest level this month since August 2007, according to the Conference Board.
The group said its index rose to 104.1 as consumers grew more optimistic about the labour market.
After its slow start, the Dow Jones industrial average jumped 133.47 points, or 0.7%, to 18,228.30.
The Standard & Poor's 500 index picked up 13.83 points, or 0.6%, to 2,159.93. The Nasdaq composite gained 48.22 points, or 0.9%, to 5,305.71.
Travel companies made some of the biggest gains on the S&P 500 after cruise operator Carnival reported a solid profit and strong revenue in the third quarter and raised its forecast for its full-year results.
Carnival rose 1.88 US dollars (£1.44), or four per cent, to 48.35 dollars (£37.12) while competitor Royal Caribbean added 3.38 dollars (£2.59), or 4.8%, to 74.35 dollars (£57.09).
Amazon rose 16.95 dollars (£13.01), or 2.1%, to 816.11 dollars (£626.72) as consumer stocks made big moves.
Netflix, which has slumped this year after its stock doubled in 2015, regained 2.51 dollars (£1.92), or 2.7%, to 97.07 dollars (£74.54).
Microsoft helped pull tech stocks higher as it picked up 1.05 dollars (80p), or 1.8%, to 57.95 dollars (£44.50). IBM advanced 2.79 dollars (£2.14), or 1.8%, to 156.77 dollars (£120.38).
Oil prices fell after investors were disappointed again that Opec countries did not make a deal to limit production.
A representative for Iran said there probably will not be any such agreement this week and that oil-producing nations should discuss the issue in November.
US crude fell 1.26 dollars (96p), or 2.7%, to 44.67 dollars (£34.30) a barrel in New York.
The international standard, Brent crude, lost 1.38 dollars (£1.05), or 2.9%, to 45.97 dollars (£35.30) a barrel in London.