Stocks Take a Joy Ride With Upbeat Consumer

Updated from 4:25 p.m. EDT

The major indices in New York marched ahead after the long weekend as investors were energized by consumer confidence data and an Apple(AAPL) upgrade.

The Dow Jones Industrial Average was up 196.17 points, or 2.4%, at 8473.49, while the S&P 500 was higher by 23.33 points, or 2.6%, at 910.33. The Nasdaq fared the best, up 58.42 points, or 3.5% at 1750.43.

General Motors(GM) shares settled up one penny at $1.44 after falling as much as 12% earlier as it races to get the final pieces in place before a predetermined deadline that if unmet would result in a bankruptcy filing.

The United Auto Workers reportedly has agreed to a deal that will lead to the union owning 17.5% of the company and receiving $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year, according to media reports.

GM bondholders, meanwhile, have until midnight to decide whether to agree to give up $27 billion in debt for a collective 10% stake in the restructured company. Reuters reported at midday that bondholders had tendered only a low-single digit percentage of the total debt available, however.

Stocks opened lower on concerns about North Korea missile firings and dim data on home prices, but reversed course as investors derived more optimism from the Conference Board consumer confidence index.

The consumer confidence index increased unexpectedly to 54.9 in May, from 40.8 in April. The move represents the biggest gain in six years and brings it to its highest level in eight months.