Dow hits all-time high; S&P extends record above 2,000

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 HortonsBest Buy fell after reporting a larger-than-expected drop in sales.

Read More Early movers: BKW, BB&, AMZN, CVX, TWX, DIS & more

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.

Symbol
Name
Price
Change
%Change
DJIA Dow Jones Industrial Average 17149.27 72.40 0.42%
S&P 500 S&P 500 Index 2004.68 6.76 0.34%
NASDAQ Nasdaq Composite Index 4568.12 10.77 0.24%

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.

Read More Geopolitical pressure could return as S&P reaches for 2,000

The CBOE Volatility Index, a measure of investor uncertainty, rose 0.7 percent to 11.78.

The Dow Jones Industrial Average rose 62.61 points, or 0.4 percent, to 17,139.48, just above its closing high, with Exxon Mobil leading blue-chip gains that extended to 26 of 30 components.

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.

Brendan McDermid | Reuters Trader on the floor of the New York Stock Exchange.

Brendan McDermid | Reuters
Trader on the floor of the New York Stock Exchange.

The benchmark 10-year Treasury yield used in figuring mortgage rates and other consumer loans held at 2.383 percent; the U.S. dollar edged lower against other global currencies.

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.

Read More After crossing 2,000, record-high close for S&P 500

Coming Up This Week:

Tuesday

1:00 p.m.: $29 billion 2-year auction

Wednesday

Earnings: Brown Forman, Chico’s, Tiffany, Williams-Sonoma

1:00 p.m.: $35 billion 5-year auction

Thursday

Earnings: Dollar General, Splunk, Abercrombie and Fitch, Toronto Dominion, Pall Corp, Signet, Canadian Imperial Bank

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

Friday

8:30 a.m.: Personal income/spending

9:45 a.m.: Chicago PMI

9:55 a.m.: Consumer sentiment

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