Can the Dow Bounce Even Higher Today?

After a bullish Monday, the market will prepare to digest numbers from both the 20-city Case-Shiller Index and the Consumer Confidence Index on Tuesday. Here's a breakdown on what these numbers could mean for the Dow Jones Industrial Average (INDEX: ^DJI) following yesterday's 1.2% climb.

Case-Shiller continues to crumble?
The Case-Shiller numbers will detail price moves for January, as the report has a two-month lag. The last Case-Shiller Index reported a 4% decline for December home prices, and the market expects another 3.8% decline for January. Predicting a housing bottom has become a pastime for many investors who are looking to invest in real estate-related stocks such as Home Depot (NYS: HD) . That company seems to be resistant to most housing bad news, however, as it has already recovered from last week's lower-than-expected new home sales and is up more than 18% for the year.

Continued lowered prices will keep eroding the Case-Shiller from its highs during the housing boom:


Case-Shiller HPI: Composite 20 Chart by YCharts

Consumer confidence holds steady?
The market expects the Conference Board's Consumer Confidence Index to weigh in at 70.1, down from last month's 70.8. These are both significantly better than January's confidence at 61.5, with last month's large improvement from fewer consumers stating that business conditions were bad and fewer saying that jobs were hard to get.

Improved consumer-confidence numbers may keep the market roaring, as could Ben Bernanke's comments yesterday that "continued accommodative policies" could be used to push unemployment lower and boost consumer demand. His comments helped push Coca-Cola (NYS: KO) , Pfizer (NYS: PFE) , and Walt Disney (NYS: DIS) all to 52-week highs. While Coke continues to grow with a 5% increase in global volume last quarter, Pfizer investors looked past the 25% loss in fourth-quarter sales after losing its patent on Lipitor, and Disney investors weren't dismayed that John Carter lost an estimated $200 million for its studio segment in the second quarter.

Later in the week
Look for numbers on initial and continuing jobless claims, a revised GDP estimate for the fourth quarter, and trends in personal incomes.

But remember ...
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At the time thisarticle was published Fool contributorDan Newmanholds no shares of the companies mentioned above. Follow him on Twitter, where he goes by @TMFHelloNewman.The Motley Fool owns shares of Coca-Cola.Motley Fool newsletter serviceshave recommended buying shares of Walt Disney, Pfizer, Coca-Cola, and Home Depot. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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