Consumer confidence soared in July to its highest level since 2007 as consumers are becoming more confident in the economy's recovery efforts, according to CNBC.

The Conference Board's Consumer Confidence Index (CCI) rose to 90.9. That's well above expectations of 85.3. It's the highest CCI level since October 2007.

Consumers seem to be confident about the present and the future as well. The Present Situation index rose to 88.3 from 86.3 and the gauge of future expectations rose to 92.7 from 86.4.

With the rise in confidence, consumers are seeing stocks surging and gas prices falling. In the last few weeks, gas prices have dipped even with rising tensions in several different areas in the world.

Capital Economics thought the jump in the CCI was a little suspicious.

"Admittedly, it might be that the Conference Board's survey captured more of the most recent drop back in gasoline prices. But we still wouldn't be surprised if this index dropped back in August," wrote Paul Ashworth, chief U.S. economist, in a research note to clients.

Ashworth added that his firm believes that wage growth will accelerate in the second half of 2014 and the Fed will begin raising rates in March of 2015.

On the news, stocks headed higher Tuesday morning but retreated on geopolitical issues around the world.

The European Union is increasing sanctions against Russia.

"Investors are clearly hyper-sensitive right now to things happening in Europe and Russia, and whether it's worsening or not," said Dan Greenhaus, chief global strategist at BTIG.

Releasing its earnings that beat analysts expectations, Merck & Co. was up over two percent Tuesday.

Telecommunications companies AT&T, Verizon Communications, Frontier Communications and CenturyLink are all up Tuesday.

The Dow Jones Industrial Average climbed nearly 74 points Tuesday morning but was down later in the morning. In afternoon trading, it is up about 30 points.