CORRECTED - US STOCKS-Wall Street rises on consumer confidence reading

                                
 * Consumer confidence at 8-month high
                                
 * Morgan Stanley upgrades Apple
                                
 * GE CEO sees company growth "harder to come by"
                                
 * Dow up 2 pct; S&P up 1.9 pct, Nasdaq up 2.6 pct
                                
 * For up-to-the-minute market news click [STXNEWS/US]
  (Corrects to show consumer confidence data is from an
industry group, instead of government)
  (Updates to late morning)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, May 26 (Reuters) - U.S. stocks rose on Tuesday
after data from an industry group showed that consumer
confidence rose in May, boosting optimism that the recession
may be abating, and a broker upgrade of Apple Inc <AAPL.O>
lifted technology stocks.
                                
 U.S. consumer confidence soared in May to its highest level
in eight months, according to the Conference Board, as severe
strains in the labor market showed some signs of easing, though
Americans' mood remained depressed by historical standards. For
details, see [ID:nN26484791]
                                
 "Huge number -- much higher than expected, obviously giving
the market a good boost here," said Todd Clark, managing
director of stock trading at Nollenberger Capital Partners in
San Francisco.
                                
 "The extent of that could help consumer spending and
economic growth in general. It's a good thing," he said.
                                
 The Dow Jones industrial average <.DJI> gained 161.69
points, or 1.95 percent, to 8,439.01. The Standard & Poor's 500
Index <.SPX> added 16.70 points, or 1.88 percent, to 903.70.
The Nasdaq Composite Index <.IXIC> jumped 44.18 points, or 2.61
percent, to 1,736.19.
                                
 Apple Inc <AAPL.O> shares surged 5.2 percent to $128.84 and
was the top boost on the Nasdaq after Morgan Stanley upgraded
the iPhone maker to "overweight," saying the company is
emerging as the clear leader in the battle over mobile Internet
and will see iPhone-driven earnings growth over the next two
years. [IDnBNG62341]
                                
 The stronger-than-expected consumer confidence data helped
erase Wall Street's initial declines, as recent missile tests
by North Korea unsettled investors.
                                
 North Korea, despite international condemnation of its
latest nuclear test, fired two more short-range missiles off
its east coast on Tuesday and accused the U.S. of plotting
against its government. For details, see [ID:nSEO205060]
                                
 General Electric Co <GE.N> shares rose 2.1 percent to
$13.38 despite comments from Chief Executive Jeff Immelt that
the company's growth will be "harder to come by" in coming
years given the prospect the global economy may grow at a
slower pace once it emerges from the recession. [ID:nT234910]
                                
 Also on the economic front, prices of single-family homes
in March fell 18.7 percent from a year earlier, but the pace of
decline slowed for a second consecutive month, according to the
Standard & Poor's/Case-Shiller Home Price Indicies released on
Tuesday. [ID:nNYS005087]
                                
 Investors will also keep a close eye on the fixed income
front. The U.S. Treasury sells $40 billion of two-year notes on
Tuesday, $35 billion of five-year debt on Wednesday and $26
billion of seven-year paper on Thursday, matching a record for
weekly bond sales set in April.
                                
 Since reaching a bear-market low on March 9, the Dow has
gained nearly 29 percent and the S&P 500 has risen more than 33
percent.
  (Reporting by Chuck Mikolajczak; Editing by Padraic Cassidy)