Stocks Take the High Road

Investors shook off fresh evidence of a slowing economy and a hawkish Federal Reserve to focus on falling oil prices, sending stocks higher on Tuesday.

Faced with a steep drop in consumer confidence and Fed meeting minutes that said the Fed may raise interest rates again, traders instead cheered sub-$70 oil prices, as tech stocks gained for the third straight day.

On Wednesday, traders will be treated to the second reading on second-quarter GDP, likely to be revised higher from 2.5% to 3%. Thursday will see personal income and spending and a speech by Fed Chairman Ben Bernanke, while Friday will bring the Labor Department’s monthly jobs report.

Netease gained 3% on a $100 million buyback.

InfoSpace slipped on a WR Hambrecht sell rating.

Avici lost ground on a new CFO.

After the close, Google CEO Eric Schmidt was elected to Apple’s board.

The Nasdaq rose 11 to 2172, the S&P 500 climbed 2 to 1304, and the Dow gained 17 to 11,369. Volume rose to 2.17 billion shares on the NYSE, and 1.65 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 19-10 on the Nasdaq. Upside volume was 70% on the NYSE, and 69% on the Nasdaq. New highs-new lows were 161-41 on the NYSE, and 90-50 on the Nasdaq.

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