NEW YORK - Stocks are giving up an early advance after a reading on consumer confidence came in well below expectations.

The Conference Board says Tuesday its Consumer Confidence Index fell to 47.7 in October, well below a forecast of 53.1.

A reading above 90 means the economy is on solid footing.

Consumer strength is considered vital to a recovery because consumer spending is an important driver of the economy.

Stocks had been rising after a report that home prices rose for the third straight month in August.

The Dow Jones industrials are down 24 at 9,845. It had been up about 40 ahead of the report. The Standard & Poor's 500 index is down 5 at 1,062, while the Nasdaq composite index is down 18 at 2,123.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) - Stocks rebounded Tuesday, moving higher in morning trading after a new report showed home prices rose for the third consecutive month in August.

The gains came a day after investors uneasy about the strength of an economic recovery pummeled stocks for the second straight day and for the fourth time in the last five days.

Overseas, Asia markets fell overnight following declines Monday in the U.S. In Europe, markets have steadily advanced throughout the day.

The Standard & Poor's/Case-Shiller home price index, which measures housing prices in 20 major metropolitan markets, rose 1 percent in August from July, marking the third straight monthly improvement.

Prices fell 11.4 percent compared with August 2008, less than the 11.9 percent slide predicted by economists polled by Thomson Reuters. The year-over-year drop has slowed since February, indicating the housing market is starting to rebound.

In early trading, the Dow Jones industrial average rose 37.49, or 0.4 percent, to 9,905.45. The Standard & Poor's 500 index rose 3.59, or 0.3 percent, to 1,070.54, while Nasdaq composite index rose 4.36, or 0.2 percent, to 2,146.21.

Investors are also awaiting a reading on consumer confidence for signs on economic improvement.

The Conference Board is expected to report consumer confidence was unchanged in October compared with the previous month. Economists polled by Thomson Reuters predict the confidence index stood at 53.1 in October. A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.

Consumer strength is considered vital to a recovery because consumer spending accounts for more than two-thirds of all economic activity, and the country is entering the key holiday shopping period.

Traders are also getting a fresh dose of earnings throughout the day. United States Steel Corp. said it lost money for a third straight quarter as demand waned because of the struggling global economy. However, the company said production and shipments are increasing.

Credit card processor Visa Inc. reports after the market closes. Its results should provide insight into whether consumers are back in stores and spending money.

Stocks have struggled in recent days as the dollar has been strengthening, pushing the price of commodities lower. Commodities are traded in dollars, so a stronger dollar makes it more expensive for foreign investors to buy into the market. Weakness in the commodities market has pressured energy and materials stocks.

Fears of an overheated market has also been playing into the market's recent decline. Stocks had been surging almost nonstop since March. Analysts have been saying for weeks the market was due for a pause or modest retreat. Major indexes had hit their yearly highs last week.

The Dow fell 104 points, or 1.1 percent, on Monday. It was the second straight triple-digit loss for the Dow. That hadn't happened since the middle of June.

The S&P declined 1.2 percent, and is down 2.8 percent since it peaked last week.

A service of YellowBrix, Inc.