Stocks Reverse Early Gains to End Lower

U.S. stocks relinquished all of the opening gains by the end of the session and closed with sharp losses on Tuesday, as concerns about China’s economy heavily outweighed lower valuations that some investors earlier saw as bargains. The Dow Jones Industrial Average fell 204.91 points, or 1.29%, to 15,666.44. The S&P 500 dropped 25.60 points, or 1.35%, to 1,867.61. The Nasdaq Composite was down 19.76 points, or 0.44%, to 4,506.49.

Consumer confidence rose in August to the highest level since January and the second highest level since the end of the recession. The consumer confidence index climbed to 101.5 from a revised 91.0 in July, the Conference Board said Tuesday.

Oil futures settled back above $39 a barrel on Tuesday. West Texas Intermediate crude for October delivery climbed $1.07, or 2.8%, to settle at $39.31 a barrel on the New York Mercantile Exchange.

Treasury yields jumped Tuesday to their highest level in a week, after falling for four straight days. The yield on the 10-year Treasury broke above 2.10% after dropping on Monday below 2% for the first time in nearly four months.

The Public Service Commission of the District of Columbia on Tuesday denied Exelon Corp’s $6.8 billion bid for Pepco Holdings Inc, possibly delivering a knockout blow to the deal.