Stocks climbed slightly higher on Tuesday, the sixth daily gain in a row for the Dow, as Wall Street cheered the latest signs of an economic recovery and the reappointment of Ben Bernanke, the man some say prevented the recession from turning into a full-fledged depression.

Today's Markets

The Dow Jones Industrial Average rose 30.01 points, or 0.32%, to 9539.29, the Standard & Poor's 500 added 2.43 points, or 0.24%, to 1028 and the Nasdaq Composite picked up 6.25 points, or 0.31%, to 2024.23. The consumer-friendly FOX 50 gained 2.04 points, or 0.27%, to 750.25.

It's appropriate the Bernanke announcement coincided with the release of a pair of reports that reveal how much economic conditions have improved since the darkest days of the financial crisis the Fed chairman is credited with containing. A private research group said consumer confidence unexpectedly surged in August and a home price index revealed prices rose on a monthly basis for the second-straight month, something that hasn't happened in two years. 

The latest rally sent the Dow to its sixth consecutive daily gain and pushed all three major indexes to fresh 2009 highs. 

"The market has legs. It looks like it wants to roast up to [Dow] 10000 regardless of what anyone says,” said Frank Davis, director of sales and trading at LEK Securities. 

However, the markets ended well off their best levels as a 3% plunge in the price of crude oil put pressure on the energy sector, capping the day's gains. 

Still, the Dow was led higher by Boeing (BA) and Bank of America (BAC). On the downside, aluminum maker Alcoa (AA) and ExxonMobil (XOM) fell by almost 1% a piece. 

The Dow has surged more than 17% over the past six weeks as Wall Street continues to price in the chances of a second-half economic recovery. In fact, the benchmark index nearly closed on Tuesday 3,000 points above its 12 1/2-year low of 6457, set on March 9. The most striking thing about the rally is that it has yet to be slowed by a correction of 10% or more, much to the bears' dismay. 

So can the summer surge continue into the fall despite more expected job losses?

“I think it can,” said Richard Sparks, senior equity analyst at Schaeffer’s Investment Research, pointing to the amount of cash believed to be on the sidelines. “We’re up big, no doubt about it. But there’s still skepticism. That suggests you don’t have the euphoria you’d have after such a big run if it’s near an end.”

The Dow climbed more than 100 points after the Conference Board said its consumer confidence index jumped to 54.1 this month, up from an upwardly-revised reading of 47.4 the month before. The improving consumer attitudes come as news about the labor and housing markets have improved markedly in recent weeks. Economists had predicted the closely-watched index would inch up to just 47.5 for August. Traders pay close attention to the confidence figures as consumer spending accounts for more than two-thirds of the U.S. economy. 

Bernanke Boost

Stocks also benefited from the decision to tap Bernanke for a second term as the move removes some of the uncertainty hanging over the markets. While Bernanke is criticized by some for his failure to foresee how the subprime crisis would invade the financial markets, he is credited by many for making sure limiting the economic damage.

"Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and outside-the-box thinking that has helped put the brakes on our economic freefall," said President Barack Obama at a press conference announcing the decision. 

Bernanke, an academic appointed in 2006 by former President George W. Bush, has presided over one of the most tumultuous periods in economic history. In the past year, the Fed created new programs credited with calming the credit markets and acted to save a number of major companies, including insurer American International Group (AIG) and Citigroup (C). Now Bernanke has the tough task of deciding when and how the Fed should remove itself from the equation before causing a spike in inflation. 

While Bernanke's reappointment was expected, there had been speculation that Larry Summers, Obama's chief economic adviser, or another person might get the job. 

“Monetary policy isn’t going to be better just because he was reappointed but now the market doesn’t have that uncertainty that would be accompanying a new Fed chairman,” said Sparks.

Meanwhile, the S&P/Case-Shiller home price index revealed prices rose in June for the second straight month. The group's 10-city index rose 1.5% in June from May but remained down 15.1% from the year before. Home builders like Centex (CTX) and KB Home (KBH) ticked higher on the news. 

But the Bernanke and economic euphoria was tempered by the tumble in oil prices, which sent shares of energy stocks such as XTO Energy (XTO) and Halliburton (HAL) lower. After touching $75 a barrel, crude oil's five-day win streak came to an end. Crude settled at $72.05, down $2.32, or 3.12%. 

Corporate Movers

Goldman Sachs (GS) is expected to be the subject of inquiries from the Financial Industry Regulatory Authority and the Securities and Exchange Commission over a newly-disclosed weekly huddle between analysts and traders, The Wall Street Journal reported. Goldman analysts reportedly gave traders short-term stock tips that differed from long-term research but there haven’t been any accusations of securities law violations.

Big Lots (BIG) posted a 9.2% increase in second-quarter net income and lifted its full-year guidance. The discount retailer beat the Street with adjusted-earnings of 35 cents per share on a better-than-expected 1.7% decline in revenue to $1.09 billion.  Big Lots sees full-year adjusted EPS of $1.92 to $2.02, compared to the Street’s view of $1.93.

Burger King (BKC) weighed in with a better-than-expected 16% jump in net income. However, the fast food giant reported a 2% decline in revenue to $629.9 million, slightly less than the $634 million that analysts were looking for, as same-store sales fell by 2.4% worldwide.

Chicos (CHS) doubled its quarterly net income in the second quarter, sending its shares soaring to 52-week highs. The women’s apparel retailer posted an adjusted-profit of 10 cents a share, matching the Street’s view.

Staples (SPLS) disclosed a 38% dive in second-quarter net income and declined to issue new guidance, sending its shares tumbling 2%.  Staples said it earned 16 cents per share last quarter on a non-GAAP basis, matching the Street’s expectations.

Borders (BGP) posted a deeper-than-expected adjusted-loss of 21 cents per share as the bookseller’s revenue tumbled 17.7%. Borders superstores saw their same-store sales tumbled 17.9%, while Waldenbooks same-store sales fell 10.8%.

Medtronic (MDT) weighed in with a 38% slide in quarterly net income but the medical device maker’s adjusted- profit exceeded Wall Street’s expectations. For its fiscal first quarter, the largest maker implantable cardioverter defibrillators posted an adjusted-profit of 79 cents per share, compared to analysts’ forecast for 78 cents.

Bank of Montreal (BMO) beat the Street with non-GAAP EPS of C$1.05, considerably better than the 95 cents a share expected by analysts. BMO said it unexpectedly cut its loan-loss provisions this quarter from C$484 million to C$417 million, as fewer consumers defaulted on loans and asset prices rose during the period.

Global Markets

European markets set new 2009 highs. London's FTSE 100 rose 0.42% to 4916.80, Germany's DAX gained 0.68% to 5557.09 and France's CAC 40 added 0.78% to 3680.61.

Asian markets tumbled overnight as Japan's Nikkei 225 fell 0.79% to 10497.36 and Hong Kong's Hang Seng slid 0.49% to 20435.24.