Dow gains 100 points; materials jump 1 percent

U.S. stocks traded higher on Tuesday as investors awaited housing data and continued to look ahead to Federal Reserve Chair Janet Yellen's speech at the end of the week.

The Dow Jones industrial average gained 100 points, with Goldman Sachs (GS) contributing the most gains. The benchmark S&P 500 gained approximately 0.4 percent, with materials rising 1 percent, leading all sectors higher. The Nasdaq composite gained 0.45 percent, as Apple gained more than half a percent.

"What we're seeing since Brexit, ... is a relentless underlying strength in the market," said Adam Sarhan, CEO at Sarhan Capital. "The market refuses to fall."

Stocks have recently traded in a very tight range, amid low volume and volatility. The CBOE Volatility index (VIX) (^VIX), widely considered the best gauge of fear in the market, posted one of its best trading days since Brexit, but has held at near two-year lows.

The S&P posted its 31st straight session without a 1 percent move on a closing basis on Monday. Still, the three major indexes managed to record all-time highs last week.

On the data front, new home sales data for July are scheduled for release at 10 a.m., with economists expecting sales to have fallen to a seasonally adjusted rate of 580,000. In June, new home sales rose to their highest level in almost 8-1/2 years.

Other data due Tuesday include the Markit Manufacturing PMI for August.

Investors were also preparing for Yellen's speech, due Friday at 11 a.m.

"So far the chances are more or less half and half that the Fed may take another stab at the interest rate. It may be safe to say that traders are somewhat prepared for this, therefore it will be no big surprise if the Fed does increase the interest rate this year," Naeem Aslam, chief market analyst at Think Markets, said in a Tuesday note to clients.

"That's going to be the massive event this week, other than GDP," Sarhan said. "I think she's got two speeches: one for if GDP misses and one for if GDP beats."

The second read for second-quarter GDP is due Friday at 8:30 a.m.

Investors also digested quarterly results from Best Buy and Toll Brothers, among other firms. Best Buy shares soared 15.5 percent in the premarket after beating expectations on both earnings and revenue. Toll Brothers' stock gained about 1.2 percent.

U.S. Treasurys fell, with the two-year note yield near 0.74 percent and the benchmark index around 1.75 percent.

Overseas, European equities rose, with the Stoxx 600 index rising 0.9 percent. Asian stocks closed mixed overnight, with the Nikkei 225 falling 0.61 percent and the Shanghai composite gaining 0.16 percent.

On tap this week:

*Planner subject to change.

Tuesday

Earnings: Intuit (INTU), Trina Solar

10 a.m. New home sales

1 p.m. $26 billion 2-year note auction

Wednesday

Earnings: HP, Royal Bank of Canada, Guess, Express, WPP Group, Heico, Williams-Sonoma, Workday

9 a.m. FHFA home prices

9:45 a.m. Manufacturing PMI

10 a.m. Existing home sales

1 p.m. $34 billion 5-year note auction

Thursday

Earnings: Toronto-Dominion Bank, Canadian Imperial Bank, Tiffany, Movado, Burlington Stores, Dollar General, Dollar Tree, Michaels Cos, Autodesk, GameStop, Pure Storage, Splunk

8:30 a.m. Initial claims, durable goods

1 p.m. $28 billion 7-year note auction

Friday

Earnings: Big Lots (BIG)

Fed Chair Janet Yellen speaks at Jackson Hole, Wyoming

8:30 a.m. Real GDP Q2 (second); international trade

9:45 a.m. Services PMI

10 a.m. Consumer sentiment