U.S. stocks rose on Tuesday, lifting the S&P 500 to another record above 2,000, after better-than-expected reports — including a jump in orders for durable goods — cast favorable light on the U.S. economy.
“Today’s report, while not perfect, reinforces market optimism regarding the economy,” emailed Dan Greenhaus, chief strategist at BTIG, of the data, which had orders for durable goods rising 22.6 percent last month versus a 7.5 percent estimate. The bookings for longer-lasting goods came on increased demand for commercial aircraft.
“As the third quarter gets underway, we stick to our expectation for three percent growth and with it, higher equity prices,” Greenhaus noted.
Burger King Worldwide rose as sources told CNBC and other media outlets that Warren Buffett is helping to finance the fast-food chain’s acquisition of Tim Hortons. Best Buy fell after reporting a larger-than-expected drop in sales.
A measure of consumer confidence hit 92.4 in August, exceeding estimates of 89.
Another report had home prices rising at a slower rate in the year ending in June, with the S&P/Case-Shiller index of property values increasing 8.1 percent from June 2013.
In addition to economic reports, geopolitics was back in play, with the presidents of Russia and Ukraine meeting Tuesday in Belarus, and Palestinian officials saying a Gaza truce had been reached with Israel under Egyptian mediation.
The CBOE Volatility Index, a measure of investor uncertainty, rose 0.7 percent to 11.78.
Rising to an intraday record of 2003.86, the S&P 500 lately advanced 5.73 points, or 0.3 percent, to 2,003.65, with energy pacing sector gains among its 10 major industry groups.
After a brief dip into negative terrain, the Nasdaq gained 8.50 points, or 0.2 percent, to 4,565.85.
For every share falling, more than two gained on the New York Stock Exchange, where 123 million shares traded as of 10:50 a.m. Eastern. Composite volume approached 607 million.
Dollar-denominated commodities gained, with gold futures for December up $9.10, or 0.7 percent, at $1,288.00 an ounce and crude-oil futures for October shipment up 86 cents, or 0.9 percent, at $94.21 a barrel.
The S&P 500 crossed 2,000 for the first time on Monday, lifted by a round of corporate deals and optimism that the European Central Bank would embark on further moves to stimulate the European economy.
Coming Up This Week:
1:00 p.m.: $29 billion 2-year auction
Earnings: Brown Forman, Chico’s, Tiffany, Williams-Sonoma
1:00 p.m.: $35 billion 5-year auction
8:30 a.m.: Initial claims
8:30 a.m.: Q2 GDP (second reading)
10:00 a.m.: Pending home sales
11:00 a.m.: Kansas City Fed survey
1:00 p.m.: $29 7-year note auction
8:30 a.m.: Personal income/spending
9:45 a.m.: Chicago PMI
9:55 a.m.: Consumer sentiment