U.S. Markets Shake Off Consumer Confidence, Finish Higher

New York, NY (AHN) - U.S. markets shook-off a record low consumer confidence reading, helped by the GMAC financing news. All three major indices added more than 2 percent as investors went bargain hunting heading into the New Year.

The Conference Board reported Tuesday its confidence index fell to 38, the lowest reading on record and down from 44.7 in October. Economists had expected an increase to 45. The index was pushed down by deteriorating sentiment on the job market.

GMAC Financial Services received word from the Treasury Department that it will receive $5 billion from the TARP fund. The financing company immediately turned around and said loan criteria for car purchases will be relaxed back to normal levels. The news should provide a boost for GM sales.

The Dow Jones Industrial average added 184 points or 2.2 percent. 28 of 30 Dow components finished the session with a gain.

The S&P 500 rose 21 points or 2.4 percent. All ten major economic sectors finished higher on Tuesday. Alcoa, up 9.9 percent on no particular news, was the Dow leader.

Energy stocks provided strength, the sector added 1.8 percent. Financials were also strong with JP Morgan and Wells Fargo adding 4.1 percent and 3.5 percent, respectively.

Tech was the strongest with the Nasdaq Composite adding 40 points or 2.7 percent. The chip stocks led the way as the Philadelphia Semiconductor Index added 4.5 percent.

Crude oil gave back some of yesterday's gains, falling 99 cents a barrel to settle at $39.03. Tuesday's poor economic data pressured the commodity as investors fear demand will continue to wane.

On the economic front, the S&P/Case Shiller Housing Index, which tracks housing values, dropped 19 percent in October from a year ago. The index is down more than 20 percent from prices at the peak of the housing bubble.

Wednesday's market will see the release of both oil and natural gas weekly inventory data due to the holiday.