NEW YORK - WALL Street ended mixed on Tuesday as data showing a rise in US consumer confidence and new home sales failed to generate enthusiasm and Federal Reserve minutes offered a downbeat economic assessment.

The Dow Jones Industrial Average managed a gain of 26.62 points (0.23 per cent) to end at 11,412.87 a day after a 2.08 per cent slide for the blue-chip index.

The technology-heavy Nasdaq fell 3.62 points (0.15 per cent) to 2,361.97 while the broad-market Standard & Poor's 500 index added 4.67 points (0.37 per cent) to 1,271.51.

The rise 'is welcome but it is trivial compared to the plunge over the past year', said Mr Ian Shepherdson at High Frequency Economics.

A separate report showed US new home sales rose 2.4 per cent in July from June to a pace that fell short of market expectations.

Meanwhile the S&P Case-Shiller home price index showed a record year-on-year drop of 15.9 per cent in housing prices in the 20 largest US markets.

'The fundamental pressure on (home) prices is still downwards,' said Mr Shepherdson.

Minutes released from the August 5 Federal Open Market Committee (FOMC) meeting showed members indicated their next move was still most likely a rate hike in view of inflationary pressures, but that the economic outlook remained murky.

'The Federal Reserve has become increasingly concerned about downside risks to growth to the economy. These concerns are highlighted in these FOMC minutes,' said Mr Brian Bethune, economist at Global Insight.

Keeping stock traders cautious, oil prices rebounded on concerns Hurricane Gustav could damage oil and gas installations in the Gulf of Mexico.

New York's main contract, light sweet crude for delivery in October, climbed US$1.16 (S$1.65) to close at US$116.27 a barrel.

'It is apparent that buyers are stuck in a wait-and-see mode regarding energy prices, more credit market write-offs, the housing situation, inflation, and geopolitical tensions,' said Mr Fred Dickson at DA Davidson & Co.

Buying interest in the battered financial sector helped underpin gains on Tuesday.

Among stocks in focus, American International Group rose 4.7 per cent to US$19.64, rebounding from sharp losses in the prior session from a credit downgrade.

Lehman Brothers, the investment bank on a roller-coaster ride amid fears about its future, gained 4.3 per cent to US$14.03.

Fannie Mae rallied 8.3 per cent to US$5.62 and Freddie Mac jumped 20.7 per cent to US$3.97 as the two ailing mortgage finance giants extended their rebound from 20-year lows last week.

Bonds edged higher. The yield on the 10-year US Treasury bond eased to 3.784 percent from 3.791 per cent on Monday and that on the 30-year bond dipped to 4.395 per cent against 4.403 per cent.

Bond yields and prices move in opposite directions. -- AFP