Associated Press Jump in consumer confidence pulls stocks from lows

Stocks post modest losses as financials lag; consumer confidence blows past forecasts in April

NEW YORK (AP) -- Investors set aside some of their worries about the economy Tuesday after a closely watched measure of consumer confidence soared in April.

Stocks ended with only modest losses and well off their lows. Concerns about the viability of banks and the spread of swine flu were balanced by news from the Conference Board reported that its Consumer Confidence Index surged to its highest level since November.

IBM Corp.'s decision to boost its dividend and spend more to buy back stock also gave the market a shot of confidence.

According to preliminary calculations, the Dow Jones industrial average slipped 8.05, or 0.1 percent, to 8,016.95 after being down as much as 86 in the early going ahead of the consumer confidence report.

Broader stock indicators also lost ground. The Standard & Poor's 500 index fell 2.35, or 0.3 percent, to 866.16, and the Nasdaq composite index fell 5.60, or 0.3 percent, to 1,673.81.

Todd Leone, managing director of equity trading at Cowen & Co., said investors have been growing more upbeat about prospects for the economy. That optimism followed a string of better-than-expected readings and has driven a market rally since early March.

"People aren't as afraid as they have been. We're definitely seeing more money come back into the market," he said.

That optimism took a hit ahead of the confidence reading as investors worried that a growth in swine flu cases could hurt industries such as travel and tourism. The World Health Organization raised its alert to Phase 4 out of 6, saying the flu spreads easily but is not a pandemic. more...