Bulls Lead a Strong ETF Rally

Oil prices rose, consumer confidence picked up and the terms of the General Motors (GM) settlement with the United Auto Workers union went public, sending stocks higher despite more bad news from the housing sector. Crude closed above $62 a barrel, and the Conference Board reported a May jump in its consumer confidence index to its highest level since September. On Wednesday, General Motors is scheduled to announce how many bondholders have accepted its terms, a major factor in whether the car maker files for bankruptcy. Union leaders on Tuesday met with management to review terms of a settlement that would make the UAW a 17.5% stakeholder in the reorganized company. Housing prices, as tracked by the Case-Shiller Index, slid 9.1% in the last quarter, worse than expected. The Dow Jones Industrial Average rose 196 points to close at 8473. To see a complete rundown on Tuesday’s trading session read our market story.

The iShares Cohen & Steers Realty Majors fund (ICF) rose 6.2% Tuesday as commercial real estate firms caught a wave of resurgent investor interest. The Vanguard REIT fund (VNQ) also rose 6.1%. Bank shares were among the most heavily traded names Tuesday, pushing the SPDR KBW Regional Banking fund (KRE) up 6.5%.

Betting against the market was the wrong move Tuesday, as the ProShares Short S&P 500 ETF (SH) slid 2.5%. The iShares MSCI South Korea Index fund (EWY) lost 1.5% as the country remained shaken by the weekend suicide of former president Roh Moo-Hyun, who left office disgraced by a corruption scandal.

Earnings and Conference Calls
American Eagle Outfitters, AutoZone, Blue Coat Systems, Charming Shoppes, Chico's FAS, Coldwater Creek, Cracker Barrel Old Country Store, Diamond Foods, Dollar Tree Stores, DSW, Jo-Ann Stores, Palm Harbor Homes, Sigma Designs, Staples, Synovis Life Technologies, TiVo, Ubisoft, Zale

Economic Data
7:00 a.m. May 22 Mortgage Application Refinance Index
7:45 a.m. ICSC Chain Store Sales
8:55 p.m. Redbook Retail Sales Index
10:00 a.m. April Existing Home Sales
4:30 p.m. May 22 API Oil Industry Report

A look at how the industry's most popular ETFs did on Tuesday: