NEW YORK (TheStreet) -- Stocks moved confidently higher on Tuesday after five days of losses as crude oil prices rebounded and the Federal Reserve kicked off a two-day meeting.
The Dow Jones Industrial Average rose by triple digits, adding 1.1% or 198 points. The S&P 500 added 1.3% and the Nasdaq gained 1%.
Energy stocks were the best performers on markets as crude oil recouped part of the losses sustained over a four-day losing streak. West Texas Intermediate crude closed 1.2% higher to $47.98 a barrel on Tuesday.
Major oilers Exxon Mobil (XOM) - Get Report, Chevron (CVX) - Get Report, ConocoPhillips (COP) - Get Report, and PetroChina (PTR) - Get Report were all higher, while the Energy Select Sector SPDR ETF (XLE) - Get Report added 3%.
Fed officials are set to debate whether the U.S. economy can withstand a move off of crises-level interest rates in their two-day meeting Tuesday. The Fed will release a policy statement on Wednesday afternoon. Economists do not expect the Fed to move rates this meeting, but will be looking for signs as to the likelihood of a September hike.
"While it's a foregone conclusion that the Fed won't be raising rates tomorrow -- neither pundits, nor economists, nor markets (via fed funds futures contract implied probabilities) are pricing in a rate hike by any means -- it seems that everyone will be watching the FOMC tomorrow as a guide for the September policy meeting," said Christopher Vecchio, currency analyst at DailyFX.
Consumer confidence in July dropped to 90.9 from 99.8 in June, according to The Conference Board data. Economists expected a reading of 99.6. The drop was tied to a decrease in the expectations component of the survey.
"This probably reflects the rise in gasoline prices over recent months and the fall in equity prices linked to the crisis in Greece," Adam Collins, assistant economist at Capital Economics, wrote in a note. "While the sharp fall in consumer confidence may look worrying following the weakness of retail sales in June, the broader picture is that consumer confidence still remains at a reasonable level."
BP (BP) - Get Report added 3.4% despite the oil giant taking a big profit hit on lower oil prices and a $10.8 billion charge tied to the 2010 Gulf of Mexico oil spill. Revenue tumbled 35.5% to $60.65 billion.
UPS (UPS) - Get Report moved 5.2% higher after reporting better-than-expected earnings. The delivery company earned $1.35 a share, 8 cents above estimates. Total shipments increased 2.1% to 1.1 billion packages.
Pfizer (PFE) - Get Report earned 56 cents a share in its recent quarter, 4 cents above estimates, while sales fell 6.3% to $11.9 billion. The pharmaceutical giant raised full-year guidance for profit and revenue. Shares gained 2.3%.
Baidu (BIDU) - Get Report plummeted 18% after reporting weaker-than-expected guidance for its third quarter. The Chinese search engine said it expects to earn as much as 18.58 billion renminbi, below an estimated 18.79 billion renminbi.
U.S. home prices increased 1.1% in May, boosted by gains in all cities monitored, according to the Case-Shiller 20-city composite index. Prices rose 4.9% from a year earlier, slightly lower than 5% in April and below an estimated 5.6% increase.