U.S. stocks were mixed Tuesday as a weak consumer-confidence reading offset the latest round of strong corporate earnings. Stocks traded in a narrow range throughout the day.

While companies' earnings and revenues have beaten expectations enough to return major indexes into the black for the year, investors are hesitant to lift stocks higher as economic data continue to disappoint.

The Dow was weighed down by its consumer-sensitive components as investors fretted over how they might be impacted if a drop in consumer confidence reported Tuesday by the Conference Board translates to a decline in consumer spending. American Express fell 1.8%, Home Depot dropped 1.1%, McDonald's slipped 0.7% and Walt Disney fell 0.5%.

DuPont kept the declines in check. Shares of the chemical giant jumped 3.9% after the company reported its second-quarter profit nearly tripled from the same time a year ago. Revenue increased more than expected on improved volume and higher selling prices.

After weighing soft economic data against encouraging corporate results for the past few weeks, investors have in recent days helped the major indexes break through their 200-day moving averages, a key level watched as a potential indicator of future strength.

European Market

European stocks closed higher Tuesday, led by a surge in the banks sector after investors breathed a sigh of relief that future bank regulations won't be quite as tough as anticipated. Strong bank earnings from UBS and Deutsche Bank also boosted sentiment among financials.

But it was the latest update of the so-called "Basel III" rules that drove bank stocks. The revised banking rule proposals, while tougher than current requirements, aren't nearly as draconian as the initial proposals announced in December.

French banks in particular benefited from the changed. Credit Agricole soared 10% to EUR10.63, Societe Generale surged 11% to EUR44.23 and BNP Paribas jumped 5.5% at EUR53.80. The Stoxx 600 Europe banks index closed up 4.7% at 225.40.

Regionally, the pan-European Stoxx 600 index rose 0.4% to 258.11. The U.K.'s FTSE100 added 0.3% to 5365.67 and Germany's DAX gained 0.2% to 6207.31. France's CAC-40 finished 0.8% higher at 3666.40. But the major measures pulled back from session highs when The Conference Board, a private U.S. group, reported that its consumer confidence index fell 3.9 points to 50.4 in July, its lowest reading since February.

On Wednesday, market participants will keep an eye on U.S. durable goods orders and the U.S. Fed beige book after the European markets close at 1800 GMT. In major market action among banks, UBS shares jumped 12%.

It swung to a second-quarter net profit of 2 billion Swiss francs ($1.9 billion), well above analyst expectations for a CHF1.26 billion profit. Shares of Deutsche Bank climbed 4%, as the bank reported a rise in quarterly profit.

In the energy sector, BP shares lost 2.6%. BP named Robert Dudley as its new chief executive, replacing Tony Hayward. It also reported a $17.2 billion loss in the second quarter, as it booked $32.2 billion in charges linked to its response to the Gulf of Mexico oil spill. In the same period a year ago, BP had posted a profit of $4.39 billion.

French food group Danone also reported earnings and its shares declined 4.2%. Its first-half net profit fell 10% to EUR838 million from EUR932 million in the same period a year ago, as higher commodity costs weighed on operating margins. Shares of business software giant SAP lost 2.2%.

The firm reported that its second-quarter net profit rose 15% to EUR491 million, topping analyst forecasts. License revenue in Europe, the Middle East and Africa declined 9% year-on-year to EUR241 million. The UniCredit analysts had been expecting EUR287 million of revenue from the region.

Also in Germany, car maker Daimler AG lifted its earnings before interest and tax guidance for 2010 to EUR6 billion. It had said it would raise guidance when it reported preliminary figures just over a week ago, but didn't give a figure. Shares dropped 3.9%, with the European auto sector broadly retreating following a recent strong run.

Asian Market

Asian markets ended mixed Tuesday as Hong Kong and Australian stocks advanced after earnings optimism fueled gains on Wall Street. Banks in Japan climbed after international central bankers and banking regulators said they had agreed new rules over how to calculate banks' core capital.

Japan's Nikkei Stock Average ended down 0.1% after rising in the previous three sessions, China's Shanghai Composite slid 0.5% each , and Hong Kong's Hang Sang Index rose 0.6%, stretching its winning run to a sixth straight session.

In Tokyo, the country's big three banks outperformed after the Basel Committee on Banking Supervision agreed Tuesday on broadening the rules over how to calculate banks' new core capital requirements.

Mitsubishi UFJ added 2.5%, Sumitomo Mitsui Financial rose 2.8% and Mizuho Financial tacked on 2.2%. Yahoo Japan Corp. added 1.2% after it confirmed previous reports that it would team up with Google to use the U.S. giant's search engine technology, sidestepping part-owner Yahoo! Inc.'s far-reaching online partnership with Microsoft Corp.

Chinese banks led the fall in Shanghai, taking a breather after rebounding strongly over the past few sessions, though some analysts said the recent rally could continue.

Agricultural Bank of China fell 0.7% after gaining 4.5% since July 19, and China Merchants Bank was down 1.1% after rising 4.5% over the same period.

Commodities and Metals

Base metals closed lower on the London Metal Exchange on Tuesday as investors used the recent elevation in prices as a selling opportunity. Analysts suggested recent price levels were "unrealistic" given ongoing concerns regarding the economic recovery in the U.S., Europe and elsewhere.

LME three-month copper, which closed higher in each of the past six sessions, fell $89 Tuesday, to close at $7,049 a metric ton. Oil prices fell nearly 2% Tuesday as stocks wavered between gains and losses and selling momentum took over after the day's two major pieces of macroeconomic news disappointed investors.

Crude oil for September delivery declined $1.48, or 1.9%, to $77.50 a barrel, its lowest price in nearly a week and the largest one-day drop since July 1. Gold futures dove to three-month lows, as relative calm across financial markets focused attention on recent outflows from the yellow metal.

Gold futures for August delivery settled down $25.10, or 2.1%, at $1,158 on the Comex division of the New York Mercantile Exchange, the lowest settlement price since April 26. The move came after data showed home prices rose in May from a year ago, beating analyst expectations.

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