By Mark DeCambre and Sara Sjolin, MarketWatch

Best Buy surges 17% after beating Wall Street expectations

The Nasdaq Composite briefly touched an all-time intraday high on Tuesday as stocks shrugged off a second day in a row of falling oil futures to march firmly higher amid a rise in global equity benchmarks.

A reading of the sale of new homes and a better-than-expected second-quarter report from Toll Brothers Inc.(TOL) helped support buying appetite.

U.S. new-home sales surged to the highest level in nearly eight years in July, rising 12.4% to a seasonally adjusted annual rate of 654,000, the Commerce Department said Tuesday. (http://www.marketwatch.com/story/new-home-sales-roar-to-an-8-year-high-of-654000-in-july-2016-08-23)However a weaker-than-expected gauge of manufacturing may be tempering gains.

The Dow Jones Industrial Average , gained 69 points, or 0.4%, to 18,600, supported by a 1.2% rise in shares of Nike Inc. (NKE). The S&P 500 index advanced 9 points, or 0.4%, at 2,191. All 10 S&P 500 sectors were posting gains, led by a 0.6% climb in materials shares.

But the Nasdaq Composite Index was enjoying the best run among the three benchmarks, rising 0.5% to 5,271, and briefly etching out an all-time intraday high of 5,275.74.

Tuesday's gains follow lackluster action on Monday (http://www.marketwatch.com/story/dow-futures-tread-water-as-buyers-wont-jump-in-until-yellen-speaks-2016-08-22), when the mood turned cautious as oil prices tumbled. Hopes faded that members of the Organization of the Petroleum Exporting Countries will agree on a production freeze deal next month.

Investors also were playing a waiting game ahead of a retreat of Federal Reserve members and economists at Jackson Hole, Wyo., on Friday, where Chairwoman Janet Yellen will be watched for hints about U.S. monetary policy.

"We could continue to see an element of caution in the markets in the lead up to this. Investors are still not buying a 2016 rate hike, even following [Fed Vice Chairman] Stanley Fischer's comments over the weekend regarding the economy," said Craig Erlam, senior market analyst at Oanda, in a note. On Sunday, speaking at a conference sponsored by The Aspen Institute (http://www.marketwatch.com/story/feds-fischer-we-are-close-to-our-targets-2016-08-21), Fischer said the central bank is within reach of its twin goals of inflation of about 2% and healthy employment.

"The only question is whether [Yellen will] strongly hint at a hike this year or indicate that holding off to early next year may be warranted, at which point markets would push the hike right back once again," he added.

Read:Why economists aren't willing to give hawks like Fischer the benefit of doubt (http://www.marketwatch.com/story/economists-not-willing-to-give-hawks-like-fischer-benefit-of-doubt-2016-08-22)

The market is pricing in a 15% probability of a rate increase in September and a 48.1% chance of it happening in December, according to CME's Fed Watch Too (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html)l.

Read:Yellen to say 'ready' for another rate hike in Jackson Hole (http://www.marketwatch.com/story/yellen-to-say-ready-for-another-rate-hike-in-jackson-hole-2016-08-19)

The dollar edged lower against (http://www.marketwatch.com/story/dollar-slips-as-investors-remain-cautious-ahead-of-jackson-hole-2016-08-23) all major currencies on Tuesday as investors held off. The ICE dollar index slipped 0.2% to 94.362.

Economic news: In other economic data, a reading of manufacturing sentiment was softer in August (http://www.marketwatch.com/story/markit-flash-us-factory-pmi-softens-in-august-2016-08-23) after hitting its highest level in nine months in July. The flash manufacturing purchasing managers index from Markit fell to a reading of 52.1 this month from 52.9 in July.

See:

There were no Fed speakers scheduled to speak on Tuesday.

Oil blues: Crude-oil prices continued to slide, as Goldman Sachs said the oil market still looks weak and that prices are likely to stay in the $45-$50 range through next summer. The investment bank also said any OPEC production freeze would "likely prove self-defeating" because it could encourage producers outside the cartel to ramp up output.

Read:Not even OPEC can save the struggling oil market now, Goldman says (http://www.marketwatch.com/story/not-even-opec-can-save-the-struggling-oil-market-now-goldman-says-2016-08-23)

Crude-oil futures lost 0.8% to $47.03 a barrel on Tuesday (http://www.marketwatch.com/story/oil-prices-slide-further-as-iraq-prepares-to-ramp-up-exports-2016-08-23), while Brent dropped 0.9% to $48.74 a barrel.

Movers and shakers: Shares of Best Buy Co. Inc.(BBY) surged nearly 17% after the consumer-electronics retailer posted earnings ahead of forecasts (http://www.marketwatch.com/story/best-buys-stock-soars-toward-10-month-high-after-profit-sales-beat-expectations-2016-08-23).

Toll Brothers gained 1.7% as the home builder reported a 58% rise in third-quarter profit (http://www.marketwatch.com/story/toll-brothers-profit-matches-views-sales-top-2016-08-23).

Zoe's Kitchen Inc.(ZOES) tumbled 19% after the fast-casual restaurant chain late Monday cut its guidance for the fiscal year (http://www.marketwatch.com/story/zoes-kitchen-shares-fall-as-guidance-is-cut-2016-08-22-184854647).

Wells Fargo & Co.(WFC) may also move after the Consumer Financial Protection Bureau said Monday it fined the bank $3.6 million (http://www.marketwatch.com/story/cfpb-fines-wells-fargo-36-million-for-deceptive-student-loan-practices-2016-08-22) for illegal student loan servicing. Shares were up 0.1% in early trade.

Mobileye NV(MBLY) rose 6.9% and Delphi Automotive PLC(DLPH) gained 2.6% after news the two are joining forces to develop self-driving technology (http://www.marketwatch.com/story/delphi-mobileye-team-up-to-develop-self-driving-tech-for-car-makers-2016-08-23) for car makers.

Other markets: Asian shares closed mostly higher (http://www.marketwatch.com/story/little-movement-from-asian-markets-ahead-of-fed-meeting-2016-08-22), while European stocks rose across the board (http://www.marketwatch.com/story/european-stocks-step-higher-as-pmi-data-rolls-in-2016-08-23) after PMI data showed the eurozone recovery picking up pace (http://www.marketwatch.com/story/eurozone-economic-recovery-picking-up-despite-brexit-pmis-show-2016-08-23).

Metals prices were mostly higher, with gold up $2.00, or 0.2%, as the dollar, as measured by the U.S. ICE Dollar Index , slipped 0.1%.

(END) Dow Jones Newswires

August 23, 2016 10:41 ET (14:41 GMT)