NEW YORK (CNNMoney.com) -- Stocks soared Tuesday, with the Dow gaining nearly 200 points after a report showing consumer confidence hit an eight-month high offset dismal housing news.

The Dow Jones industrial average (INDU) jumped 195 points, or 2.3%, according to early tallies. The S&P 500 (SPX) index gained 2.6%. The Nasdaq composite (COMP) gained 3.4%.

Tuesday marked the first time the Dow and S&P 500 closed in positive territory since May 18.

Stocks opened lower on concerns about North Korea, which had test-fired missiles after conducting a nuclear test Monday, along with worries over a report that showed a record plunge in U.S. home prices.

But a much stronger than expected consumer confidence reading offset those concerns and encouraged investors to jump back into the market after several down days.

The rally was broad-based, with 28 of the 30 Dow components advancing. IBM (IBM, Fortune 500), which jumped 3%, led the gainers.

Shares of energy producers rose as the price of oil closed at a 6-month high, above $62 a barrel. Consumer names, such as McDonalds (MCD, Fortune 500) and Wal-Mart (WMT, Fortune 500), also advanced.

The dollar, which slumped to a 5-month low last week, regained some ground against the euro. Gold prices retreated.

While Tuesday's consumer confidence report helped revive the optimistic tone that has driven stocks about 30%higher over the last few months, it could be hard for the market to keep that momentum going in a week full of key economic indicators.

A report on existing home sales is due shortly after the opening bell Wednesday. Durable goods orders and a revision of the first-quarter gross domestic product report are also on tap this week.

"We want to see more-constant positive economic numbers over a sustained period of time," said Stephen Carl, head of equity trading at Williams Capital Group.

Economy: The Conference Board's Consumer Confidence Index rose to 54.9 in May from 40.8 in April. Economists surveyed by Briefing.com had expected the index to rise to 42.

The index now stands at its highest level since September, when it reached 61.4. But that's still low by historical standards.

The report was "a good sign," said Todd Leone, head trader at Cowen & Co. "We definately saw buyers come into the market."

Investors pay close attention to measures of consumer confidence because spending by consumers makes up the bulk of U.S. economic activity.

"We are recovering slowly," Leone said. "It's going to take time, and this is just one number."

Separately, a closely watched index of home prices dropped a record 19.1% in the first quarter.

The S&P/CaseShiller Home Price Index, which tracks 20 of the largest housing markets, has plummeted 32.2% from its July 2006 peak and has declined for 32 straight months. It fell 18.2% in the previous quarter.

Companies: Investors are waiting to hear more about the fate of General Motors (GM, Fortune 500) and Chrysler.

Tuesday marks that last day that GM bondholders, who hold $27 billion in unsecured debt from the company, can accept an offer to swap $1,000 of the debt for 225 shares of the company. GM faces a June 1 deadline to produce a turnaround plan or file for what would be the largest industrial bankruptcy in the nation's history.

The leadership of the United Auto Workers union met Tuesday to review the tentative agreement reached last week with GM on changes to its 2007 labor deal. A source familiar with the agreement told CNNMoney.com that the union-controlled trust fund will receive a 17.5% stake in GM as a result of the deal.

Shares of GM rose 0.7%.

Meanwhile, the federal judge in Chrysler LLC's Chapter 11 case could decide Wednesday whether the automaker can pull its best-performing assets out of bankruptcy and sell them to a newly formed incarnation of itself, called Chrysler Group.

In other company news, shares of Apple (AAPL, Fortune 500) rose 6% after analysts at Morgan Stanley upgraded the iPhone maker's stock.

Bonds: Treasury prices slipped, with the yield on the benchmark 10-year at 3.51%. Treasury prices and yields move in opposite directions.

The Treasury sold $40 billion in 2-year notes Tuesday, kicking off a week packed with debt auctions. The 2-year note sale was strongly bid for, with $117.5 billion in bids coming in for $40 billion in debt.

Other markets: Oil for July delivery rose 68 cents to settle at $62.45 a barrel ahead of an OPEC meeting later this week. Traders expect the cartel to leave output unchanged at the meeting. Oil prices have settled above the $60 mark for four straight sessions and are now at a more than 6-month high.

In currency trading, the dollar was mixed against its major trading partners. The greenback rose against the euro but fell against the pound and the yen.

COMEX gold for June delivery fell $5.60 to settle at $953.30 an ounce.  

NEW YORK (CNNMoney.com) -- Stocks fell at Tuesday's open after another dour report on the housing market and tensions about North Korea dampened investor sentiment.

The Dow Jones industrial average (INDU) fell 47 points, or 0.5%, shortly after the opening bell. The S&P 500 (SPX) index and the Nasdaq composite (COMP) both slid 0.6%.

Oil prices dipped below $60 a barrel. The dollar rose against rival currencies. Bond prices fell.

Investors are also unwilling to place large bets ahead of the latest news from General Motors and Chrysler due later in the week.

Stocks ended last week essentially flat, but economic worries continue to hang over investors, who are coming back from a long weekend. U.S. markets were closed Monday for Memorial Day.

With the major indexes up around 30% from the lows of early March, "a lot of people jumping on the correction bandwagon," according to Anthony Conroy, head trader at BNY ConvergEx Group.

"I wouldn't be surprised to get a little back from what we've taken so far this year," Conroy said. "It all depends on what we're going to see with these economic numbers."

Economy: A closely watched index of home prices fell a record 19.1%. in first quarter.

The S&P/CaseShiller Home Price Index, which tracks 20 of the largest housing markets, has plummeted 32.2% from its July 2006 peak and has fallen 32 straight months. It fell 18.2% in the previous quarter.

At 10 a.m. ET, the Conference Board is due to release its report on May consumer confidence. Economists think confidence rose in May, with the index climbing to 42 from 39.2 the month before.

World markets: Stocks in Asia fell after North Korea fired short-range missiles following its nuclear test Monday. European shares also tumbled across the board.

Autos: The fate of General Motors (GM, Fortune 500), a major uncertainty on Wall Street, may become more clear. The automaker has set a May 26 deadline for its bondholders to reach a restructuring agreement, major hurdle GM needs to clear in order to avoid bankruptcy.

Bonds: Treasury prices fell, with the yield on the benchmark 10-year at 3.4%. Treasury prices and yields move in opposite directions.

Oil and currencies: Oil for July delivery fell $2.02 to $59.66 a barrel ahead of an OPEC meeting later this week. Traders expect the cartel to leave output unchanged at the meeting.

In currency trading, the dollar rose against its major trading partners, including the euro, the pound and the yen.  

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to tumble at Tuesday's open, as oil prices fell, tensions about North Korea rose and investors awaited a reading on consumer confidence.

At 8:18 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were lower.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Stocks ended last week essentially flat, but economic worries continue to hang over investors, who are coming back from a long weekend. U.S. markets were closed Monday for Memorial Day.

With the major indexes up around 30% from the lows of early March, "a lot of people jumping on the correction bandwagon," according to Anthony Conroy, head trader at BNY ConvergEx Group.

"I wouldn't be surprised to get a little back from what we've taken so far this year," Conroy said. "It all depends on what we're going to see with these economic numbers."

Economy: At 10 a.m. ET, the Conference Board is due to release its report on May consumer confidence. Economists think confidence rose in May, with the index climbing to 42 from 39.2 the month before.

A key home price index, durable goods orders and a revision of first-quarter gross domestic product are all on tap for later in the week.

World markets: Stocks in Asia fell after North Korea fired short-range missiles following its nuclear test Monday. European shares also tumbled across the board.

Autos: The fate of General Motors (GM, Fortune 500), a major uncertainty on Wall Street, may become more clear. The automaker has set a May 26 deadline for its bondholders to reach a restructuring agreement, major hurdle GM needs to clear in order to avoid bankruptcy.

Oil: Oil prices tumbled $0.96 to $60.71 a barrel in electronic trading ahead of an OPEC meeting later this week. Traders expect the cartel to leave output unchanged at the meeting. 

Stocks have been in somewhat of a holding pattern recently, ending last week essentially flat, after the major indexes rallied some 30% from the lows of early March.

The sense of economic optimism that propelled the market higher over the last few months has faded, and investors are now looking for more concrete signs of recovery.

If no such signs emerge, analysts say the market could be in for a significant pullback. But if the outlook brightens, a painful selloff may be avoided.

"The market will be looking to see if there's actually something fundamental behind the 30% rally," said Abigail Doolittle, a portfolio manager at Johnson Illington Advisors. "If there is, maybe these levels can be sustained."

Next week brings a host of key indicators that could put the economic picture into sharper focus. Also the fate of General Motors, a major uncertainty on Wall Street, may become more clear as the automaker's restructuring efforts kick into high gear.

The market will also have to contend with lingering concerns about the credit ratings of some major economies. Last week, ratings agency Standard & Poor's lowered its outlook for the United Kingdom, raising concerns about the credit worthyness of the United States as the governemnt expands record deficts.

That said, another week of treading water could be considered a victory. Some market pros think a period of "sideways" trading could be healthy. It suggests the market is "building a base" from which stocks can eventually move higher.

"The market is coiling for a significant move, but the longer it stays firm, the more likely the next leg will be higher," said Nick Kalivas, equity analyst at MF Global in Chicago.

Monday: Markets closed for Memorial Day holiday.

Tuesday: The Conference Board, a private business research group, will release its monthly report on consumer confidence shortly after the opening bell. Economists think confidence rose in May, with the index climbing to 42 from 39.2 the month before.

The S&P/CaseShiller Home Price Index, which tracks 20 of the largest housing markets, is expected to show prices fell 18.4% in March after a record 18.63% drop the month before. The index is due at 9 a.m. ET.

General Motors (GM, Fortune 500) bondholders face a deadline to make concessions under the troubled automaker's restructuring plans. GM could face bankruptcy at the end of this month if its turnaround efforts fall short of government requirements.

Wednesday: An industry report is expected to show sales of existing homes increased slightly in April. The report from the National Association of Realtors is due at 10 a.m. ET.

Office supply retailer Staples (SPLS, Fortune 500) is due to report earnings before the opening bell. Analysts think the company earned 21 cents per share in the first quarter, down from 30 cents per share a year ago.

Discount retailer Dollar Tree (DLTR, Fortune 500) is expected to report first-quarter earnings of 59 cents per share, up 23% from a year ago, when it releases results in the early morning.

Thursday: April durable goods orders, weekly jobless claims and new home sales are all due in the morning. Durable goods are forecast to rise modestly after a dip in March. New home sales are seen rising by 7,000 units. The government's weekly oil inventory report, which is normally released Wednesday at 10:30 a.m. ET, will be out at 11 a.m. ET.

After the closing bell, personal computer maker Dell (DELL, Fortune 500) is expected report first-quarter earnings of 23 cents per share, down from 38 cents a year ago.

Friday: Gross domestic product, the broadest measure of economic activity, likely shrank at a 5.5% annual rate in the first quarter, according to estimates for the government's preliminary GDP report. That's an improvement from 6.1% drop the government reported in April. The report is set to be released at 8:30 a.m. ET.

Other economic reports include the Chicago purchasing managers index and a revision of the University of Michigan's measure of consumer sentiment.