MARKET SNAPSHOT: U.S. Stocks Edge Up; Dow On Pace For Record Close

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Oil, gold relinquish Monday gains

NEW YORK (MarketWatch) -- U.S. stocks moved higher on Tuesday buoyed by a better-than-expected reading of U.S. construction data for October and robust car sales in November.

The S&P 500 (SPX) was broadly higher, with nearly all 10 main sectors trading in positive territory, almost the exact opposite trading scenario on Monday when markets slumped. Energy stocks rallied, even as oil prices fell. The Dow Jones Industrials Average (DJI) moved above its previous closing high, reached on Nov 28, and was tracking a record close.

Also moving higher were the Nasdaq Composite (RIXF) and Russell 2000 (RUT) , which was registering yearly gains after Tuesday's step sharp move higher.

Economic data: Construction spending data, released Tuesday morning, were up by 1.1% in October to a seasonally adjusted annual rate of $971 million, reported the U.S. Commerce Department Tuesday at 10 a.m. Even more significant data come Friday with the highly anticipated jobless data.

Meanwhile, Stanley Fisher, vice chairman of the Federal Reserve, speaking at The Wall Street Journal CEO Council annual meeting in Washington, D.C., said continued labor market improvement and just "some signs" that inflation is beginning to stir would be enough for the U.S. central bank to lift-off interest rates. If inflation continues to move lower, then the Fed will have to take that into account, Fischer said.

Commodities volatile: Oil and precious metals were giving up gains earned in the prior session. After more than 4% rebound for oil prices on Monday, January crude prices(CLF5) were down more than 2%. Opinion: OPEC cannot outlast the U.S. on oil prices

Gold prices also gave back some of Monday's rally, with February futures(GCG5) off 1.9% and the precious metal falling below $1,200 an ounce level. What silver's biggest move in two years means

Investment banks continued to roll out their predictions for 2015. Citigroup is forecasting the S&P 500 will return 8.5% by the end of 2015, for a level of 2,200, and sees outperformance for Japan and emerging-market stocks. That prediction is in line with that of Dan Greenhaus, strategist at BTIG, who said the main reason for his own muted expectations is the fact that the first rate hike by the Federal Reserve -- expected next year -- will be taken badly by stocks. Fed to stay aggressive in 2015 as it battles 'lowflation'

Stocks in focus:General Motors Co.(GM.XX) shares rose after the car maker reported a 6.5% rise in sales in last month, the best November sales figures in several years. Ford Motor Co.(F) shares were higher, as the fall in November sales was as expected.

Shares of Royal Caribbean Cruises Ltd.(RCL) jumped after being added to the S&P 500.

Avanir Pharmaceuticals Inc.(AVNR) soared after the company said it will be acquired by Japan's Otsuka Pharmaceutical Co. in a $3.5 billion deal, which will pay $17 per share for Avanir.

Shares of Cypress Semiconductor Corp.(CY) Spansion Inc.(CODE) surged after the companies announced a $4 billion stock merger late Monday. See Movers & Shakers column

Overseas markets: The FTSE 100 index was eyeing its first win in four days as oil and mining stocks rebounded from Monday's trade. Energy stocks were also driving gains for Europe , and rally action was also seen across Asia. The Shanghai Composite rallied 3%, led by brokerages and banks. The People's Bank of China held back from draining funds from the banking system on Tuesday, which analysts said has triggered speculation that a cut in reserve requirements could come soon.

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