Stocks up despite confidence dropoff

A late-session buying spurt gave stocks a moderate lift Tuesday as investors managed to overcome their disappointment over troubling readings on consumer confidence and manufacturing. But with volume extremely light, analysts said it was difficult to place any real significance on the upturn.

The plunge in the Conference Board’s consumer confidence index, which fell to 98.2 in August from 105.7 in July, kept stocks lower for much of the day and raised concerns on Wall Street that a lack of new jobs could extend the summer’s economic slowdown through the third quarter, or perhaps longer. Data on Midwest manufacturing activity also showed a sharp decline for the month.

With oil prices extending their losses, buyers did move back into the market at the end of the session. Still, the turnaround was likely exaggerated because of the light turnover; many investors have stayed out of the market entirely during the Republican National Convention.

“It’s hard to make anything out of this rise with the light trading we’re in right now,” said Brian Pears, head equity trader at Victory Capital Management. “No matter how you look at it, the economic numbers weren’t good. We’re really going to need to see evidence that this summer was a soft spot and not something prolonged.”

The Dow Jones industrial average was up 51.40, or 0.5 percent, at 10,173.92.

Broader stock indicators were narrowly higher. The Standard & Poor’s 500 index gained 5.09, or 0.5 percent, to 1,104.24, and the Nasdaq composite index was up 1.61, or 0.1 percent, at 1,838.10.

The major indexes ended August with the Dow rising 0.3 percent and the S&P edging 0.2 percent higher, while the Nasdaq tumbled 2.6 percent for the month.

The consumer confidence index reading fell far below the 103.5 expected by Wall Street, and, because consumers were focused on jobs, put even more of a focus on the government’s August employment report, scheduled for release on Friday. The government’s payroll figures have been disappointing Wall Street all summer — another lackluster number would likely recast the economy’s recent slowdown as a larger and more disturbing trend.

Advancing issues outnumbered decliners by more than 2 to 1 on the New York Stock Exchange, where volume came to 1.13 billion shares, compared with 846.95 million on Monday.

The Russell 2000 index of smaller companies was up 3.37, or 0.6 percent, at 547.93.

Overseas, Japan’s Nikkei stock average fell 0.9 percent. In Europe, Britain’s FTSE 100 closed down 0.7 percent, France’s CAC-40 fell 1.2 percent and Germany’s DAX index dropped 1.4 percent.