US STOCKS-Wall St edges up, S&P rises back above 2,000

Reuters - UK Focus

* U.S. consumer confidence hits highest since October 2007

* Best Buy tumbles after results, DSW higher

* Digital Ally (NasdaqCM: DGLY - news) gains again, has tripled this month

* Indexes up: Dow 0.3 pct, S&P 0.2 pct, Nasdaq 0.1 pct (Updates to mid-morning, adds confidence data)

By Ryan Vlastelica

NEW YORK, Aug 26 (Reuters) - U.S. stocks edged higher onTuesday, with the S&P 500 rising to a fresh record on strongconsumer data, but gains were capped as investors found fewreasons to make major changes to their portfolios amid along-running rally.

The S&P breached 2,000 for the first time on Monday, andwhile it closed under that level it still ended at a new high.Including Tuesday's move, both the Dow and the S&P have risen in10 of the past 13 sessions, while the Nasdaq is up for 11 of thepast 13 sessions. Much of the market's recent gains have come onlow volume, suggesting many traders may be reluctant to jump inat current levels.

"People aren't going to do anything too aggressive untilthere's some kind of catalyst, either positive or negative, andwe may end up consolidating around 2,000 for a while," saidMichael O'Rourke, chief market strategist at JonesTrading inGreenwich, Connecticut. "We're still in an uptrend, but it willbe tough to move significantly higher from here."

U.S. consumer confidence rose more than expected in August,climbing to its highest since October 2007. Separately, U.S.durable goods orders jumped 22.6 percent in July, the biggestgain on record, though the number was skewed by stronginternational demand for aircraft. Excluding transportation,orders fell 0.8 percent.

The market's momentum is still considered intact, and theS&P's price-to-earnings ratio is within historical norms,leading many analysts to believe stocks are not overvalued.Nonetheless, pronounced further gains may be a challenge amidpotential headwinds such as a reduction in Federal Reservestimulus and a simmering conflict between Ukraine and Russia.

The Dow Jones industrial average rose 48.2 points or0.28 percent, to 17,125.07, the S&P 500 gained 3.47points or 0.17 percent, to 2,001.39 and the Nasdaq Composite added 4.17 points or 0.09 percent, to 4,561.51.

Best Buy Co Inc fell 6 percent to $30.07 after theelectronics retailer reported second-quarter revenue that missedexpectations and forecast a drop in same-store sales in thesecond half of the year. DSW Inc rose9.4 percent to $31.01 after adjusted earnings topped forecasts.

Digital Ally Inc extended its meteoric rise,climbing 25 percent to $15.59 on heavy volume. The recent fatalpolice shooting of an unarmed black teenager in Missouri hasfueled interest in the company's wearable camera, and the stockhas almost quadrupled this month alone.

Amazon.com Inc late Monday agreed to buylive-streaming gaming network Twitch Interactive for about $970million in cash. Shares (Frankfurt: DI6.F - news) rose 0.7 percent to $336.50.

Kite Pharma Inc (NasdaqGS: KITE - news) rose 16 percent to $25.87 a dayafter positive results in an early-stage study for anexperimental cancer immunotherapy. Among otherbiotech names, Achillion Pharmaceuticals (NasdaqGS: ACHN - news) was up 3.4percent to $11.15 while Regeneron Pharmaceuticals (NasdaqGS: REGN - news) rose0.8 percent to $350.78. (Editing by Bernadette Baum and James Dalgleish)

View Comments (0)