US STOCKS-Market higher after consumer confidence

(Updates with release of consumer confidence)

NEW YORK, Sept 30 (Reuters) - U.S. stocks held onto positive territory on Tuesday after a report showed a stronger-than-expected reading in a gauge of consumer confidence.

The report from the Conference Board provided an added positive spur as a gauge of manufacturing activity in the U.S. Midwest region also showed a stronger-than-expected reading, tempering fears about the economy's health.

A day after the House of Representatives rejected the proposed $700 billion rescue plan to reduce the U.S. financial sector, investors held out hope that leaders in Washington might work around any disagreements.

Investors snapped up beaten-down shares across the board, lifting shares of JPMorgan Chase (JPM.N) , up 9.6 percent at $44.95 on the New York Stock Exchange. Shares of Apple Inc (AAPL.O) , among Monday's worst decliners, jumped 4.3 percent to $109.83.

The Dow Jones industrial average .DJI was up 264.11 points, or 2.55 percent, at 10,629.56. The Standard & Poor's 500 Index .SPX was up 35.13 points, or 3.18 percent, at 1,141.52. The Nasdaq Composite Index .IXIC was up 55.43 points, or 2.79 percent, at 2,039.16. (Reporting by Ellis Mnyandu; Editing by Kenneth Barry)