MARKET SNAPSHOT: U.S. Stocks Hold Gains After Confidence Data

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks marched higher Tuesday after housing data were mostly in line and consumer confidence rose by more than expected.

The S&P 500 (SPX) rose 14.15 points, or 0.8%, to 1,871.45. The Dow Jones Industrial Average (DJI) rose 118.58 points, or 0.7%, to 16,394.76

The Nasdaq Composite (RIXF) was 46.24 points, or 1.1%, higher at 4,272.10.

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U.S. home prices slipped in January for a third straight month after a particularly harsh winter, according to data released Tuesday, as strong year-over-year appreciation showed signs of moderating.

New U.S. homes sold at an annual rate of 440,000 in February, down 3.3% from January's one-year high, the government said Tuesday. Economists polled by MarketWatch forecast sales to total a seasonally adjusted 440,000

A gauge of U.S. consumer confidence rose to 82.3 in March from an upwardly revised 78.3 in February, the Conference Board said Tuesday.

Markets were reassured by comments from Philadelphia Fed president Charles Plosser, who said in an interview with CNBC that short-term interest rates should hit 4% at the end of 2016. He also said the market reaction to Federal Reserve Chairwoman Janet Yellen's comments after last week's Federal Open Market Committee meeting was "puzzling." He said her timetable of a rate hike six months after the end of bond buying "wasn't a wildly unexpected time frame." Her comments sparked a selloff for stock markets last Wednesday.

Plosser, who is a voting member of the Fed's policy committee, said the rate forecast isn't aggressive. The Philadelphia Fed chief is due to speak again at 7 p.m. Eastern. Atlanta Federal Reserve President Dennis Lockhart will speak as the market closes at 4 p.m. Eastern time.

(CCL)In corporate news, shares in Walt Disney Co. (DIS) were up 0.6% after the media giant said late Monday it was buying Maker Studios for as much as $950 million. The privately held studio is credited with making the Harlem Shake video go viral.

Vertex Energy Inc. (VTNR) shares were up 5% after the environmental services company said late Monday that net income rose to $7.88 million last year, a 115% jump from the prior year.

Volatile fuel-cell company stocks rose Tuesday, reversing losses from the prior session. Plug Power Inc. (PLUGD) rose 4.2% while FuelCell Energy Inc. (FCEL) was up 1.7%.

Himax Technologies Inc. (HIMX) sank 11% after Bank of America Merrill Lynch downgraded the semiconductor maker to underperform, saying the highly competitive market will make margin expansion difficult for Himax, according to news reports.

Walgreen Co. (WAG) rallied 4.5% after the company reported its fiscal second-quarter earnings, which fell slightly from the year-earlier period. The drugstore chain said it would close 76 stories later this year.

Shares of Sonic Corp. (SONC) rallied 10% after the company posted a 15% profit gain.

Shares of Carnival Corp (CCL) dropped 2.5% after the cruise company reported that it swung to a fiscal first-quarter loss. Its outlook for the next quarter came in below Wall Street's expectations.

In other markets, stocks in Asia showed a modest pullback, as investors continued to mull downbeat China manufacturing data from the weekend and a slightly disappointing Markit preliminary U.S. purchasing managers index. European stocks pushed higher, shrugging off soft German business-confidence data.

Gold prices (GCM4) gave up earlier gains and were lower. Oil (CLM4) prices ticked up. The ICE dollar index (DXY) , which measures the U.S. unit against a basket of six major rivals, rose to 80.05, from 79.923 late Monday.

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