NEW YORK (Reuters) – Stocks slipped on Thursday as Goldman Sachs pulled financials lower and an unexpected rise in jobless claims added to bearish sentiment that put the S&P on track for its fifth day of losses in six.

Concerns about higher inflation overseas pushed investors toward defensive stocks, with the consumer staples group the S&P’s top performer.

The Dow industrials turned positive, as investors bought some big names in the consumer staples sector. The Dow’s top two percentage gainers were Coca-Cola Co (KO.N), up 1.3 percent, and Kraft Foods Inc (KFT.N), up 1.6 percent.

Goldman Sachs (GS.N) fell 2.8 percent to $155.71 and was the biggest drag on the S&P financial sector (.GSPF), which was the benchmark’s worst-performing group, down 0.8 percent.

Late Wednesday, a report from a Senate subcommittee said Goldman had sold mortgage-linked derivatives to clients at inflated prices and misrepresented the nature of the deals.

“This is a shot across the bow for Goldman, and this certainly won’t be the last you’ll see of headlines related to this,” said Michael Mullaney, a portfolio manager who helps manage $9.5 billion at Fiduciary Trust Co. in Boston. “This could stay in the forefront for the next several months and we’ll see additional ramifications in the stock.

The Dow Jones industrial average (.DJI) was up 1.55 points, or 0.01 percent, at 12,272.54. But the Standard & Poor’s 500 Index (.SPX) was down 1.61 points, or 0.12 percent, at 1,312.80. The Nasdaq Composite Index (.IXIC) was down 9.04 points, or 0.33 percent, at 2,752.48.

The S&P’s top-performing sector was consumer staples (.GSPS) up 0.6 percent. The group’s top performer was Supervalu Inc (SVU.N), which surged 16 percent to $10.53 after reporting strong earnings.

“A lot of people are looking for defensive plays for getting into the stock market,” Mullaney said. “They’re generally high-quality dividend-paying stocks with big overseas sales, and they’ve been due for a rebound.”

Google (GOOG.O) is scheduled to report results after the market’s close. Analysts forecast the Internet company will report revenue growth of 25 percent.

The stock rose 0.2 percent to $577.36, but options activity suggested investors were bracing for a decline in the share price after Google’s earnings report.

“There has been notably more put buying over the past two weeks leading up to earnings for Google,” said Ryan Detrick, senior technical analyst at Schaeffer’s Investment Research in Cincinnati, Ohio.

Ford Motor Co (F.N) fell 2.3 percent to $14.64 after the company agreed to expand a recall of the best-selling F-150 pickup trucks. U.S. safety regulators said the recall was due to a possible short circuit that could cause airbags to deploy unexpectedly.

On the economic front, U.S. initial jobless claims unexpectedly rose in the latest week, climbing back above 400,000.

The core U.S. Producer Price Index rose faster than expected in March, adding to concerns about inflation.

In China, inflation accelerated in March at a rate as fast as 5.4 percent from a year earlier, Hong Kong media said.

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

NEW YORK (Reuters) – Wall Street rose modestly on Tuesday, led by gains in the consumer discretionary sector after McDonald’s posted earnings above Wall Street’s estimates.

Stocks wavered between small gains and losses as energy shares weakened after China’s central bank raised interest rates to tackle inflation. But the market brushed off the news by midday and resumed the rally that has pushed the Dow and the S&P to their highest in 2 1/2 years.

Dow component McDonald’s Corp (MCD.N) posted stronger-than-expected global sales at established restaurants as demand in Europe rebounded. The stock rose 3 percent to $65.67.

“It would take something unforeseen to derail this rally, and China’s rate hike was something that investors were expecting. They are expecting that not only from China but from all over the world,” said Timothy Harder, chief in investment officer at Peak Investment Services is Denver, Colorado.

“The unwinding of pessimism is now slowly turning into optimism.”

The Dow Jones industrial average (.DJI) was up 35.57 points, or 0.29 percent, at 12,197.20. The Standard & Poor’s 500 Index (.SPX) was up 2.60 points, or 0.20 percent, at 1,321.65. The Nasdaq Composite Index (.IXIC) was up 1.50 points, or 0.05 percent, at 2,785.49.

The S&P consumer discretionary index (.GSPD) was up 0.6 percent and was the top performing among S&P 500 sectors.

Merger activity continued for a second day with Kindred Healthcare Inc’s (KND.N) planned acquisition of RehabCare Group Inc (RHB.N) to create a post-acute healthcare services company.

Kindred Healthcare jumped 23.6 percent to $24.08 and RehabCare soared 43.9 percent to $36.65.

But some earnings disappointed investors.

Teva Pharmaceutical Industries’ (TEVA.O) shares fell 6.4 percent to $51.50 after the world’s biggest maker of generic drugs reported results that fell short of forecasts.

Avon Products Inc (AVP.N) posted a steeper-than-expected drop in quarterly profit, pushing shares of the world’s largest direct seller of cosmetics down 5.2 percent to $27.83.

Beazer Homes USA (BZH.N) also reported a wider-than-expected first-quarter loss, sending the stock down 1.5 percent to $5.37.

In the latest move to battle inflation, China’s central bank raised interest rates by 25 basis points, its second increase in six weeks.

The S&P energy index (.GSPE) fell 0.6 percent to be the worst-performing sector on the index.

(Reporting by Angela Moon, Editing by Kenneth Barry)

LONDON – An unexpected decline in a closely watched gauge of U.S. consumer confidence and further depressing housing data weighed on stocks Tuesday though holiday-thinned trading kept the selling in check.

The Conference Board reported that its main consumer confidence index fell to 52.5 in December from an upwardly revised 54.3 the previous month amid ongoing concerns over jobs. The decline was unexpected — the consensus in the markets was for the index to push up to 56.

Further disappointment came with the news that house prices in 20 U.S. cities all fell in October, according to a survey from S&P/Case Shiller.

Though stock markets in both Europe and the U.S. pushed lower following the downbeat economic data, the response was fairly muted given light trading volumes — New York trading was additionally impacted by the heavy snowstorm over the past couple of days.

In Europe, France’s CAC-40 closed down 3.47 points at 3,858.72 while Germany’s DAX eked out a gain of just over a point to 6,972.10. British markets were closed for a holiday.

In the U.S., the Dow Jones industrial average was down less than a point at 11,554.38 around midday New York time, while the broader Standard & Poor’s 500 index fell less than a point to 1,257.22.

Aside from the state of the U.S. economy, investors continued to evaluate the effects of China’s decision over the weekend to raise its key interest rate by a quarter of a percentage point to 5.81 percent — its second increase in just over two months.

The Chinese monetary authorities are getting increasingly fidgety about rising prices and the hope is that higher borrowing costs will rein in inflation, which spiked to a 28-month high in November of 5.1 percent.

However, higher interest rates could well dampen down economic growth. That’s important for the world economy, because China has been a key motor over the past couple of years.

The surprise decision continued to weigh on Chinese stocks, and the Shanghai Composite Index fell 1.7 percent to close at 2,732.99, while Hong Kong’s Hang Seng index shed 0.9 percent to end at 22,621.73,

Japan’s benchmark Nikkei 225 stock average declined 63.36 points, or 0.6 percent, to finish at 10,292.63 amid renewed worries over a strengthening yen — a higher yen makes it more difficult for Japan’s exporters to compete in international markets.

For the third straight day, Japanese officials, including finance minister Yoshihiko Noda voiced their worries about the yen’s strength, which has seen the currency rise to near seven-week highs against the dollar.

As a result, investors will be on the lookout for any actual intervention in the markets by the Japanese authorities. In September, the Bank of Japan bought dollars and sold yen for the first time in six years in the hope of putting a ceiling, at the very least, on the yen appreciation.

By late afternoon London time, the dollar was down 0.6 percent at 82.21 yen.

Eric Viloria, an analyst at Forex.com, doubts that “bold action” will be taken by Japanese policymakers anytime soon given recent positive economic data and stock market gains. However, he said the risk is a deterioration in production and exports will weigh on Japanese stocks and economic growth and that could trigger a reaction by policy makers.

Meanwhile, the euro was volatile all day, falling from a high of $1.3270 to $1.31.

Benchmark oil for February delivery rose 28 cents to $91.28 in electronic trading on the New York Mercantile Exchange.

____

AP Business Writer Kelvin Chan in Hong Kong contributed to this report.

NEW YORK (Reuters) – U.S. stocks were little changed on Tuesday as investors were reluctant to take large positions in either direction and largely shrugged off weaker-than-expected data on consumer confidence and home prices.

The S&P/Case-Shiller 20-city index showed prices of U.S. single-family homes fell almost double the expected pace in October. U.S. consumer confidence unexpectedly deteriorated month over month in December, hurt by increasing worries about the jobs market, according to a private report.

“Everybody has done what they need to do. The money that has been put in place has been put in place until the end of the year — in spite of the fact we may get some modestly surprising data,” said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.

The Dow Jones industrial average (.DJI) dropped 5.79 points, or 0.05 percent, to 11,549.24. The Standard & Poor’s 500 Index (.SPX) shed 0.58 points, or 0.05 percent, to 1,256.96. The Nasdaq Composite Index (.IXIC) dipped 4.16 points, or 0.16 percent, to 2,663.11.

General Motors Co (GM.N) gained 2.2 percent to $35.37 after several analysts initiated coverage of the automaker’s shares, including “overweight” ratings at Barclays Capital and Morgan Stanley.

Trading volumes, already light for the holiday season, were expected to remain thin as the northeastern United States digs itself out from a blizzard that disrupted air and rail travel at the end of the busy Christmas weekend.

The blizzard pushed oil prices up to just below 26-month high struck the previous session with U.S. crude for February up 27 cents at $91.27 a barrel.

Despite the weaker-than-expected consumer confidence data, holiday sales offered further evidence of a returning consumer according to several reports.

MannKind Corp (MNKD.O) jumped 7.9 percent to $8.60 after the inhaled-insulin developer said the U.S. health regulator would not be able to complete the review of Afrezza by December 29 and would require about four more weeks.

(Editing by Padraic Cassidy)

NEW YORK (Reuters) – U.S. stock index futures dipped on Monday as lingering worries about Europe’s ability to contain a credit crisis despite a bailout for Ireland more than offset signs of a U.S. consumer comeback.

U.S. shoppers appeared to be ready to open their wallets again after the recession, spending 6.4 percent more than last year during the Black Friday weekend, the traditional start to the holiday shopping season.

European stocks ticked 0.6 percent lower and the euro fell to two-month lows against the U.S. dollar after European Union finance ministers endorsed an 85 billion-euro loan package to help Dublin bridge its deficit and shore up the economy.

Nervousness about Ireland and the possibility it could lead to bigger problems as the euro zone works its way through a sovereign debt crisis has weighed on stocks in recent weeks.

U.S.-traded shares of European banks fell, with Deutsche Bank (DBKGn.DE)(DB.N) down 3.1 percent to $48.98 and Credit Suisse (CSGN.VX)(CS.N) off about 1 percent to $38.02. But an ETF of U.S. financial stocks (XLF.P) was unchanged in light morning trade.

“European concerns linger and the band-aid over the weekend doesn’t seem to make people comfortable,” said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut.

He said the recent outperformance in consumer-related stocks and with U.S. bank shares seeming to be holding better than their European peers could limit losses in the U.S. equities market.

S&P 500 futures dipped 0.2 point and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were unchanged, and Nasdaq 100 futures fell 2.25 points.

Adding to global jitters, South Korean President Lee Myung-bak vowed retaliation against any further provocation after the North attacked a South Korean island last week and anger grew at the South’s response.

Whistle-blowing web site WikiLeaks leaked a vast cache of U.S. diplomatic cables, including ones that showed Saudi King Abdullah repeatedly urged the United States to attack Iran.

Wal-Mart Stores Inc (WMT.N) made a $2.3 billion formal bid for 51 percent of Massmart Holdings Ltd (MSMJ.J) to give it a substantial presence in South Africa and pave the way for further expansion in the continent.

Commodity-related shares led U.S. stocks lower on Friday in a shortened post-holiday session. Markets were closed on Thursday for the U.S. Thanksgiving holiday.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

NEW YORK – After a two-month rally in U.S. stock markets, IPO investors appear eager to buy into China’s fast-paced growth and expanding middle class, and make selective bets on U.S. consumers’ slowly rekindled desire to shop and dine out.

This week, tutoring service TAL Education Group is up 65 percent since its IPO, which raised $120 million. Handbag maker Vera Bradley Inc. also gained 68 percent this week after its $176 million IPO, while restaurant chain Bravo Brio Restaurant Group Inc. rose 21 percent. And prepaid debit card provider NetSpend Holdings Inc. raised $203.5 million and has risen 23 percent despite regulatory difficulties at its primary issuing bank.

Volatile markets and economic uncertainty tend to squelch demand for initial public offerings. After a steep spring decline and a turbulent summer, the Dow Jones industrial average has risen more than 3 percent so far in October after its best September since 1939.

The gain in U.S. markets has most benefited investors who bought into Chinese companies listing in the U.S. Chinese companies have chalked up some of the biggest returns of the past 12 months this autumn. But consumer companies serving Americans have also tiptoed back to the IPO market.

While the U.S. economy is growing only modestly, investors are salivating at the prospect of big returns in China, the world’s No. 2 economy.

“You can’t ignore the demographics and economics of what’s happening in China,” said David Menlow, an analyst with IPOfinancial. The World Bank expects the Chinese economy to grow 8.5 percent in 2011, while the U.S. economy expands at a much more modest 2.9 percent.

So investors may be more selective with U.S. consumer IPOs, which have not been common since the U.S. downturn began. Buyers have not suddenly decided Americans are once again ready to spend big at the mall, analysts said.

Vera Bradley and Bravo Brio are impressive because they have grown while unemployment remains high, said Francis Gaskins of research firm IPOdesktop. Neither are discounters: Vera Bradley’s signature quilted handbag costs $52, while the average check per person at Bravo’s two chains are $19.28 and $25.14, respectively.

“We’ve been able to grow in difficult times,” said Vera Bradley CEO Michael Ray on Thursday. Now he’s noticing new costumers are picking up the company’s quilted bags, he said. “Signs are encouraging that the consumer is coming back.”

A few other U.S. apparel retailers have gone public recently — Express Inc. in June, Body Central Corp. earlier this month. A U.S. restaurant chain hasn’t gone public since Einstein Noah Restaurant Group Inc. in June 2007, according to IPO research firm Renaissance Capital.

The success of Vera Bradley and Bravo Brio may prompt other consumer companies to go public, but there’s nothing coming up in the next couple weeks. Toys ‘R Us filed plans for an IPO in late May, but hasn’t made a move yet, Gaskins said.

The wave of China offerings, however, continues into next week. Of the six companies on tap to go public, Chinese Internet retailer Mecox Lane Ltd. is getting a lot of attention from investors, said IPO Boutique’s Scott Sweet, who tracks and rates initial public offerings. Another Chinese company, vegetable producer Le Gaga Holdings Ltd., is also expected.

Still, not every China deal has been a success. Chinese pharmaceutical company ShangPharma Corp. fell 15 percent in its first day of trading Tuesday and remained below its offering price at the end of the week. That’s indicative of a discerning IPO buyer who doesn’t regard any broader sector or region of the world as a sure bet, especially after the market booms and crashes of the past five years.

Another deal, cholesterol drug developer Aegerion Pharmaceuticals Inc., priced shares of its IPO far below expectations Friday after twice delaying the offering. It closed up nearly 14 percent, however.

NEW YORK – Stocks are falling on news that consumer confidence sank to its lowest point since February.

The Conference Board says Tuesday its consumer confidence index dropped to 48.5 in September from 53.2 in August, well below what analysts were expecting. That’s a bad sign for the economy and knocked stocks lower for the second day in a row.

Stocks were already slightly lower before the consumer confidence report came out. Traders are still worried about European banks and the large debt loads held by countries there.

The Dow Jones industrial average is down 80, or 0.7 percent, at 10,733. The S&P 500 is down 9, or 0.8 percent, at 1,134, while the Nasdaq composite is down 26, or 1.1 percent, at 2,344.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stocks dropped Thursday as traders remained cautious about the health of European banks.

The Dow Jones industrial average fell 36 points in early morning trading.

European markets fell sharply on continued worries about how banks on the continent will be able to handle mounting government debt. The bank worries overshadowed another upbeat report on Germany’s economy. Consumer confidence in Germany rose as more people are optimistic about job growth.

Growth in consumer confidence in Germany comes on the same day where a key report on consumer confidence in the U.S. is scheduled for release. The Conference Board is expected to say U.S. consumer confidence dipped slightly this month compared with August.

Economists polled by Thomson Reuters forecast the consumer confidence index dipped to 52.5 from 53.5 last month. It takes a reading of 90 to indicate a strong, healthy economy.

Confidence remains low in the U.S. as unemployment remains high and economic growth is tepid. But investors have been able to drive stocks sharply higher throughout September because economic data indicates the country is strong enough to avoid falling back into recession.

The Dow Jones industrial average has jumped 8 percent this month, putting it on pace for its best September since 1939.

In corporate news, dealmaking continued for a second day. Drug developer Endo Pharmaceuticals Holdings will buy Qualitest Pharmaceuticals for $1.2 billion. A wave of dealmaking Monday wasn’t enough to keep stocks from sliding Monday as traders pocketed some profits and some concerns remained about the health of Europe’s banks.

Research in Motion Ltd. announced it’s rolling out a competitor to Apple Inc.’s iPad, called the PlayBook. The PlayBook is set to launch in early 2011 in the U.S.

Drugstore chain Walgreen Co.’s profit easily topped forecasts, sending its shares sharply higher.

The Dow fell 35.64, or 0.3 percent, to 10,775.79 early morning trading.

The Standard & Poor’s 500 index fell 3.97, or 0.4 percent, to 1,138.19, while the Nasdaq composite index fell 12.31, or 0.5 percent, to 2,357.46.

LONDON – Renewed fears about the pace of the U.S. economic recovery hit stocks Friday after a survey showed consumer sentiment fell to its lowest level in over a year.

The University of Michigan reported that its main consumer sentiment index slipped to 66.6 in September from August’s 68.9. The drop was unexpected — the consensus in the markets was that the index would rise modestly to 70. The long-run average is around 85

The data provided further evidence that the U.S. consumer is faltering amid mounting talk of a double-dip recession, especially as consumer spending accounts for around 70 percent of the world’s largest economy.

“The broader story is that the slow bleed in consumer sentiment appears to be continuing, probably because of an array of reports that this recovery is not generating nearly the same number of jobs as past recoveries,” said Alan Ruskin, an analyst at Deutsche Bank.

“Going into the weekend it looks like traders are willing to simply chop risk,” said Ruskin.

The impact in the markets was to turn modest gains into modest losses.

In Europe, the FTSE 100 index of leading British shares closed down 0.4 percent at 5,508.45 while Germany’s DAX fell 0.6 percent to 6,209.76. The CAC-40 in France was 0.3 percent lower at 3,722.02.

In the U.S., the Dow Jones industrial average was down 0.1 percent at 10,586.21 while the broader Standard & Poor’s 500 index was 0.1 percent higher at 1,126.07.

The figures were a disappointment for investors who had earlier marked up shares after positive earnings news from technology companies such as Oracle and BlackBerry maker Research in Motion helped shore up sentiment.

The technology sector is widely seen as a bellwether of the recovery, as companies’ and households’ demand rises as the economic outlook brightens.

Over the past week or so, stocks have rebounded as fears of a return to recession in the U.S. — the so-called ‘double-dip’ — have diminished after a run of solid economic data. However, the prevailing view is that the recovery will continue to be fairly subdued, possibly requiring further support from policymakers, both in government and at the U.S. Federal Reserve.

Figures showing that U.S. consumer prices rose 0.3 percent in August — roughly in line with expectations — had little impact on the markets on a day when trading was somewhat volatile, given that many futures and options contracts have to be settled in both Europe and the U.S.

The U.S. inflation data are unlikely to convince the Fed of the need to boost money supply by buying bonds from financial institutions.

“Today’s inflation report indicates that the Fed’s monetary policy is unlikely to change in the foreseeable future due to the absence of inflationary or deflationary pressures,” said Michael Woolfolk, an analyst at Bank of New York Mellon.

Earlier in Asia, Japan’s benchmark Nikkei 225 stock average gained 116.59 points, or 1.2 percent, to 9,626.09 as exporters continued to move higher in the wake of the Bank of Japan’s decision earlier this week to intervene directly in the currency markets to stem the export-sapping appreciation of the yen.

By mid afternoon London time, the dollar was down 0.1 percent at 85.74 yen, way up from the 82.87 yen 15-year low it was trading at before the intervention.

One side-effect of the intervention over the last couple of days has been a strengthening in the euro against the dollar. The euro was down 0.1 percent at $1.3046, having earlier hit a five week high of $1.3159.

Analysts said that Japan’s defense of its currency, its first intervention in six years, has made the euro a favorite bet with traders against the dollar.

Elsewhere in Asia, South Korea’s Kospi rose 0.9 percent to 1,827.35, Hong Kong’s Hang Seng added 1.3 percent to 21,970.86 and Australia’s S&P/ASX 200 advanced 0.7 percent to 4,638.90.

Benchmark crude for October delivery was down 76 cents at $73.81 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost $1.45 to settle at $74.57 a barrel on Thursday.

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Associated Press Writer Alex Kennedy in Singapore contributed to this report.

NEW YORK – Stocks are reversing course after a surprise drop in consumer sentiment.

Major indexes gave up early morning gains Friday and are now fluctuating in a narrow range after a preliminary reading on September consumer sentiment fell unexpectedly. The University of Michigan/Reuters sentiment index has fallen to 66.6 when economists were expecting it to rise to 70.

Stocks had regained some momentum earlier in the day because of upbeat earnings from Oracle and Research in Motion.

The Dow Jones industrial average is down 10, or 0.1 percent, at 10,585. The S&P 500 is up less than 1 at 1,125, while the Nasdaq composite is up 3, or 0.1 percent, at 2,306.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — New signs of strength in the technology sector drove stocks higher Friday.

Strong profits reports from BlackBerry maker Research in Motion and software company Oracle are encouraging because it means companies are investing in new technology, often considered a leading indicator for an improving economy. Research in Motion also tried to quell unease surrounding ongoing disputes about data security.

The Dow Jones industrial average rose about 50 points in early morning trading. The Standard & Poor’s 500 index, often used as a benchmark by professional investors, rose 0.6 percent and is approaching the high end of its recent trading range.

Oracle and Research in Motion’s results have helped restart a September rally that has lost some momentum in recent days. September is historically a poor month for stock returns, but this year so far major indexes have climbed sharply as many economic indicators have topped modest growth forecasts.

A report later Friday on consumer sentiment could provide an additional lift to stocks. As reports have indicated continued growth in recent weeks, traders have become more confident the economy will not fall back into a recession.

A preliminary reading of the University of Michigan/Reuters sentiment index likely climbed to 70 from 68.9 last month. Rising consumer confidence would bode well for the market because it could lead to a jump in retail sales, a primary driver of the economy.

The Dow jumped 50.86, or 0.5 percent, to 10,646.07 in early morning trading.

The S&P 500 rose 6.39, or 0.6 percent, to 1,131.05, while the tech-heavy Nasdaq composite index rose 16.33, or 0.7 percent, to 2,319.58.

Traders will be closely watching the 1,131 level on the S&P 500 because that is the high end of its recent trading range. For traders that make moves based on technical indicators breaking out above that level would indicate the market is ready to extend its rally and could trigger a rush of buying. Being unable to move significantly above could lead to a sell-off. Many automated trading platforms have buy and sell orders set around such indicators.

NEW YORK – A surprise jump in consumer confidence gave stocks a modest lift, but gains were kept in check as investors remain cautious about the strength of the economy.

A report Tuesday showed confidence climbed more than expected in August. That gave traders a reprieve from a string of reports throughout the month that indicated economic growth continues to slow. A report earlier in the day indicated manufacturing activity slowed in the Midwest in August.

“Market pessimism in the very near-term has hit a nadir,” said John Brady, a senior vice president at MF Global. The small rise in confidence took the edge off the downbeat mood, Brady said. However, he cautioned any gains might be short lived because traders are hesitant to make big moves before Friday’s key monthly employment report. The unemployment rate likely inched higher in August as employers avoid major hiring.

The Dow Jones industrial average rose about 54 points in midday trading after being down as much as 68 earlier in the day. Broader indexes also rose, reversing earlier declines.

Retailers like Macy’s Inc. and Best Buy Co. were among the biggest beneficiaries of the better-than-expected consumer confidence report. Growing confidence could eventually lead to a jump in retail sales.

Reports throughout August have indicated economic growth is slowing and consumer confidence doesn’t necessarily mean spending will rise significantly. Some investors worry the slowdown could continue throughout the second half of the year and lead the country back into recession. Stocks have been pummeled throughout the month because of uncertainty about the pace of the rebound.

Tuesday’s regional manufacturing report was the latest to follow that trend. The drop in the Chicago Purchasing Managers Index was similar to declines seen in other regional manufacturing reports earlier this month.

The Conference Board said its consumer confidence index rose to 53.5, from a revised 51 in July. Economists polled by Thomson Reuters expected a slight increase. While the jump in confidence did provide some relief for the market Tuesday, it still is far from indicating a strong economy. A reading above 90 indicates a healthy economy.

In midday trading, the Dow rose 53.92, or 0.5 percent, to 10,063.80. The Standard & Poor’s 500 index rose 5.16, or 0.5 percent, to 1,054.08, while the Nasdaq composite index climbed 4.85, or 0.2 percent, to 2,124.82.

About two stocks rose for every one that fell on the New York Stock Exchange, where volume was 352.8 million shares.

The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.50 percent from 2.53 percent late Monday. It fell as low as 2.48 percent earlier in the day. The 10-year note yield is often used as a gauge to set interest rates on mortgages and other consumer loans.

Chicago PMI fell to 56.7 in August from 62.3 last month. The drop was slightly worse than economists forecast. The manufacturing sector has shown weakness during the third quarter after being among the strongest sectors early in the year.

A better-than-expected report on home prices was largely written off as getting a lift from a now expired home buyer tax credit. The S&P/Case-Shiller Home Price Index grew 1 percent between May and June, the third straight monthly gain. Those gains are likely to slow because of the expiration of the government’s tax credit. July sales figures indicated a steep drop now that the surge in buying because of the tax credit has worked its way out of the data.

Best Buy rose 43 cents to $31.89. Macy’s climbed 49 cents, or 2.6 percent, to $19.68.

Overseas, Japanese stocks were hammered as the yen hovers near a 15-year high against the dollar. Many Japanese companies like Sony, Panasonic and Toyota rely heavily on exports, so a stronger yen cuts into their profits. Japan’s Nikkei stock average tumbled to a 16-month low, falling 3.6 percent.