NEW YORK (MarketWatch) — U.S. stocks climbed on Tuesday, bouncing back from last week’s losses after data showed consumer confidence rising in May and the real-estate market picking up speed.

U.S. Treasury prices fell, pushing the 10-year yield to a 13-month high, while the dollar DXY, -0.04% strengthened and Japan’s yen USDJPY, +0.08% softened.

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The Conference Board reported confidence rose to a five-year high in May, with consumers more upbeat about the economy over the next six months.

Separately, the S&P/Case-Shiller home-price index for March found home prices rose 10.9% from the year-ago figure.

“Economic optimism is as high as a kite,” emailed Kevin Giddis, a fixed-income analyst at Raymond James, noting the better-than-expected housing numbers and the rise in consumer sentiment.

Notching another record close, the Dow Jones Industrial Average DJIA, -0.46% rose as much as 218 points, and ended with a gain of 106.29 points at 15,409.39, with all but four of its 30 components rising.

The advance had the Dow Jones Industrial Average extending its Tuesday winning streak to a 20th session, the longest Tuesday winning streak ever, according to Ryan Detrick, senior technical strategist at Schaeffer’s Investment. Read more on the Dow’s Tuesday win streak.

The S&P 500 index SPX, -0.84% added 10.46 points to 1,660.06, with financials pacing sector gains and telecommunications the leading laggard.

U.S. home prices rose in March, marking the fastest year-over-year growth rate in nearly seven years. Getty Images

Shares making noteworthy moves Tuesday included Tiffany & Co. TIF, -0.57% , up 4% after the jewelry retailer reported quarterly earnings above expectations.

Tesla Motors Inc. TSLA, -4.14% jumped nearly 14% in the wake of the electric-car maker’s stock-and-note offering last week that netted nearly $1 billion.

Exelon Corp. EXC, -0.91% fell 7.5% after Deutsche Bank AG downgraded the operator of nuclear reactors to hold from buy.

Read more on the drop in utility stocks.

In deal news, Fidelity National Financial Inc. FNF, +0.59% has agreed to acquire Lender Processing Services Inc. US:LPS for around $2.9 billion. Under the terms of the deal, Lender Processing, a technology company that services the mortgage and real-estate industries, can seek further offers until July 7.

The Nasdaq Composite COMP, -1.26% gained 29.74 points to 3,488.89.

For every three stocks falling, roughly three gained on the New York Stock Exchange, where 724 million shares traded. Composite volume surpassed 3.3 billion.

On the New York Mercantile Exchange, oil rose for the first session in five, with crude futures for July delivery CLN23, rising 86 cents to $95.01 a barrel.

Gold futures for August delivery US:GCQ3 fell $7.80 to $1,379.70 an ounce on the Comex division of the Nymex.

Bulls rule

Wall Street’s rally follows a long holiday weekend, with investors returning to gains in Asia and Europe.

U.S. equities have advanced, with the S&P 500 up 147% since March 2009, in a bull market fed by three rounds of bond buys by the Federal Reserve and as corporate earnings exceeded expectations.

But not all strategists are voicing optimism about the rally, saying investors chasing performance could be driving stocks to unsustainable levels.

In Tokyo, the yen pulled back over concerns about rising Japanese government bond yields. That allowed Japanese stocks to overcome a volatile session and close higher, with the Nikkei 225 index NIK, +0.02% gaining 1.2%. Other Asian markets also closed higher.

U.S. stocks fell for the first week in five last week on fears that the Fed would begin to pare back its bond-buying program.

“The Fed continues to speak to the market, but only in ways that would suggest that they are truly divided as a board. While the Fed chairman suggested that the current buying program could be reduced, he stopped short of offering the metrics that would lead them to do just that,” wrote Giddis.

“The broader metrics are known: a 6.5% unemployment rate and the inflation rate above 2.5%. Neither of which are present today,” he added.