By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks showed modest gains on
Tuesday afternoon, with the S&P 500 staying on pace for its
first-ever finish above the milestone level of 2,000.
A stronger-than-expected reading on consumer confidence provided
a lift, and investors took a somewhat mixed report on durable-goods
orders in stride.
The S&P 500 (SPX) rose 3 points, or 0.1%, to 2,001 after
touching an intraday record just above 2,005. Energy(XLE) fared
best among the 10 S&P sectors, while utilities(XLU) and
industrials(XLI) performed worst and lost ground.
The Dow Jones Industrial Average (DJI) advanced 40 points, or
0.2%, to 17,117. The blue-chip index achieved an intraday record of
17,153.80, but it's now trading below its July 16 record close at
17,138.20. The Nasdaq Composite (RIXF) tacked on 15 points, or
0.3%, to 4,572, yet again eyeing its highest close since March
2000.
Today's economic data: An August reading on consumer confidence
came in at 92.4, above forecasts for 88.5, and a separate report
said U.S. home prices rose 1% in June. Orders for U.S. durable
goods skyrocketed a record 22.6% in July because of a surge in
contracts for Boeing Co. (BA) aircraft, but bookings actually fell
for most other industries.
The confidence reading was encouraging, and the durables report
was "mixed to positive," said Terry Sandven, chief equity
strategist at U.S. Bank Wealth Management. "The backdrop is still
favorable for equities to trend higher," he told MarketWatch.
While U.S. economic reports came in mostly positive, some
analysts cautioned that overseas headlines still can rattle stocks.
It's "any change in the geopolitical landscape that has the
potential to cause the most volatility," said Joao Monteiro,
analyst at Valutrades, in a note. See: Cease fire reached between
Israel and Hamas and Peace-talk hopes diminished for Russia,
Ukraine
More on S&P 500 and 2,000: The S&P 500 topped 2,000 for
the first time on Monday in intraday action, but the benchmark
finished the session about two points shy of that big round number.
Read: The S&P 500 topped 2,000. Should you care?
"It's nice that the broad equity markets are meeting milestones,
but I think a more attractive, more compelling driver is company
earnings," said Sandven of U.S. Bank. He noted that consensus
forecasts call for earnings growth of 11% in 2014 and then another
11% gain in 2015.
Movers and shakers: Best Buy Co. (BBY) shares fell nearly 7%
amid a sluggish outlook. The struggling retailer is the day's worst
performer in the S&P 500.
Burger King Worldwide Inc. (BKW) and Canada-based Tim Hortons
Inc. (THI) confirmed Tuesday that they plan to combine to create a
new company in an $11 billion deal. They are getting financing help
from Warren Buffett's Berkshire Hathaway Inc. (BRK/A). Burger King
shares lost 5% after surging Monday, while Tim Hortons' U.S.-listed
shares gained 8%.
Shares of Kite Pharma Inc.(KITE) rose 17% after the biotech
reported the majority of patients responded positively to its
cancer-drug candidate.
Follow more of the day's notable stock moves here.
Other markets: The Stoxx Europe 600 closed higher, and the FTSE
100 came back from a U.K. holiday to play catch-up with gains it
missed out on Monday. Asian stocks finished mixed. Gold(GCV4) found
some renewed strength as the dollar (DXY) eased.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires