NEW YORK (TheStreet) -- U.S. stocks reversed course again on Tuesday morning to move higher after consumer confidence unexpectedly rose in September.
The S&P 500 was up 0.25%, the Dow Jones Industrial Average added 0.07%, and the Nasdaq fell 0.26%.
U.S. consumer confidence rose in September to 103 from a revised 101.1 in August, according to the Conference Board. The reading was its highest level since January and was near an eight-year high. Economists had expected the measure to fall to 96 after extreme market volatility over the month.
Stocks closed sharply lower on Monday on a myriad of concerns: the Federal Reserve's decision to delay an interest rate hike continued to cause unease; China's industrial profits supported fears of a slowdown; and concerns over increased regulatory scrutiny in the biotech sector pressured health care stocks.
Biotech stocks moved higher after a week of pressure since Democratic presidential candidate Hillary Clinton vowed to address "price gouging" in the industry. The health care sector was the best performer on markets as Gilead Sciences (GILD) - Get Report , Celgene (CELG) - Get Report , Biogen (BIIB) - Get Report and Valeant Pharmaceuticals (VRX) all moving higher. The iShares NASDAQ Biotechnology Index ETF (IBB) - Get Report climbed 2%.
U.S. house prices rose 0.6% in July, driven by increases along the West Coast including in Portland and San Diego. The S&P/Case Shiller 20-city composite showed a 5% increase over the past 12 months.
Wall Street was also looking ahead to the highly anticipated monthly release of U.S. jobs numbers out Friday. Economists expect 200,000 jobs to have been added to nonfarm payrolls in September, up from 173,000 in August. The unemployment rate is forecast to remain steady at 5.1%.
San Francisco Fed President John Williams has joined the chorus of Fed members arguing for a rate increase later this year. Williams said near-full employment and rising home prices as reasons to tighten monetary policy for the first time in a decade.
"I don't think we are at a tipping point yet -- but I am looking at the path we're on and looking out for potential potholes," Williams said in a speech at the UCLA Anderson School of Management. "I am starting to see signs of imbalances emerge in the form of high asset prices, especially in real estate, and that trips the alert system."
Yahoo! (YHOO) will charge ahead with a plan to spinoff its stake in Alibaba (BABA) - Get Report despite not having received approval from the Internal Revenue Service. The risky move could cost Yahoo! billions if the IRS challenges the spinoff in a future audit. Earlier this month, the IRS denied a request for a favorable ruling of the plan. Yahoo! expects to complete the $22 billion spinoff by the end of the year.
IHS (IHS) shares were on watch after the analytics company reported a better-than-expected third quarter. Profit of $1.56 a share beat estimates by 9 cents, while revenue jumped nearly 6% to $587.95 million.
Reynolds American (RAI) announced a deal to sell its Natural American Spirit international businesses to Japan Tobacco. The all-cash deal is worth nearly $5 billion and is expected to close in early 2016 depending on regulatory approval.
Pepco Holdings (POM) and Exelon (EXC) - Get Report have asked District of Columbia regulators to reconsider a rejection of their pending merger. The electric companies filed a motion on Monday, arguing that the $6.8 billion merger would stabilize rates and improve service.
Advanced Micro Devices (AMD) - Get Report added nearly 1% on reports it had discussed the sale of a 25% stake to private-equity firm Silver Lake Partners. However, talks have reportedly hit a roadblock after the two sides failed to agree on price and strategy.