Stocks Jump on Consumer Confidence

Turns out we're getting more confident, however slowly. The Consumer Confidence Index reported a surge from 40.8 in April to 54.9 in May—the fourth largest surge in 32 years, and one that shattered economists' expectations. Consumers are also feeling better about business conditions, and the economy as a whole. And despite an earlier report on low housing prices, the widely-distributed consumer confidence numbers caused stocks to surge on Tuesday, with the Dow up nearly 200 points by its close on Tuesday, its largest gain since May 18. The S&P broke its four-day losses and rose 23 points. Consumer stocks lead today, with JPMorgan Chase and American Express marking the largest gains.