NEW YORK (TheStreet) -- Markets came back with a bang on Tuesday, rallying for the first time in six sessions.
Equities moved confidently higher 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 189 points. The S&P 500 added 1.2% 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.
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. 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.
"We continue to expect very little in terms of a material shift in the policy stance," CRT Capital analysts wrote in a note. "With even [Fed member James] Bullard (and his hawkish bias) suggesting that it's 'a little too early to hike' it's safe to assume the liftoff is off the table. We continue to look to September as the first real possibility and December beyond that."
Better-than-expected earnings also propelled markets higher. BP (BP) 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.
Ford (F) gained 1.9% after the automaker beat estimates on the top- and bottom-lines. Strong volume and pricing drove North America to record-setting profit this quarter. UPS (UPS) 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) 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 2.9%.
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."
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.