The Dow Jones Industrial Average see-sawed throughout the session, swinging intra-day by 158 points, as investors weighed weak consumer confidence data against more deal making activity. The blue-chip index ended 46 points, or 0.4% higher, at 10,858. The S&P 500 gained 5 points, or 0.5%, to 1,147, while the Nasdaq rose 9 points, or 0.4%, to close at 2,379.
Sentiment, which had been mixed throughout the day, turned decidedly positive towards the end of the trading session, with the advance-decline ratio improving to 7 to 3 from an even split earlier in the afternoon.
Consumer confidence fell to a reading of 48.5 in September, from August's level of 53.2, according to the Conference Board's index. The month's figure was well below the target of 53 that economists had been projecting, according to Briefing.com.
"Much like the unemployment rate, consumer confidence has been stuck in a sub-par range even as the economic recovery unfolded," said Jim Baird, partner and chief investment strategist for Plante Moran Financial Advisors.
"Until there is meaningful improvement in labor markets and great certainty that a double-dip recession will be averted and growth will reaccelerate, it seems highly unlikely that the sullen mood of consumers will be lifted," he added.
Doug Roberts of Channel Capital Research believes that the markets will stick to a broad trading range between 1010 and 1170 or 1180 on the S&P 500 until the third quarter results start pouring in. "Nimble traders will make money in this market. For others, it is going to be pretty frustrating," he said.
Roberts expects things to pick up after the elections. "If the Republicans takes the house, that will impede regulation and could offer an upside to the markets," he said.
Elsewhere in commodity markets, the December gold contract settled higher by $9.7, at $1,308.30 an ounce.
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