By Rodrigo Campos
NEW YORK (Reuters) - U.S. stocks edged higher on Tuesday after weak consumer confidence figures, with investors saying the data bolsters expectations the Fed will pump more money into the economy, which would support equities.
The S&P 500 has risen 9 percent so far in September, making it one of the best months for the index in 20 years.
"Currently the bullish case (for stocks) is a 'win-win,'" said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.
"If the economy is good, that's good for stocks. If the economy is bad, it's good for stocks because the Fed is going to quantitatively ease."
Although he said the bullish case is "common knowledge," Battipaglia said he did not subscribe to it.
U.S. Treasury debt prices also rose as the weaker-than expected data added to expectations that the Federal Reserve will give the economy more support.
But the rally in bonds could be a bubble, Byron Wien, the vice chairman of Blackstone Advisory Partners, told Reuters Insider. He sees stocks moving higher, with little chance of another recession. http://link.reuters.com/nyn74p
The Dow Jones industrial average <.DJI> gained 38.49 points, or 0.36 percent, to 10,850.53. The Standard & Poor's 500 Index <.SPX> rose 3.21 points, or 0.28 percent, to 1,145.36. The Nasdaq Composite Index <.IXIC> edged up 3.17 points, or 0.13 percent, to 2,372.95.
Walgreen Co
Continuing the spurt of recent M&A activity, Endo Pharmaceuticals Holdings Inc
September data showed U.S. consumer confidence fell to its lowest level since February, underscoring lingering worries about the strength of the economic recovery, while home prices dipped in July.
Shares of Apple Inc
Representatives from Apple and Hewlett-Packard declined to comment, and analysts quickly dismissed the rumor.
Apple shares slid 2.1 percent to $285.13 and HP rose 0.8 percent to $41.58.
(Reporting by Rodrigo Campos; Editing by Jan Paschal)
