By Alexandra Scaggs
U.S. stocks drifted around unchanged levels midday, pausing
after the S&P 500 index closed above 2000 for the first
time.
The Dow Jones Industrial Average tacked on 11 points, or 0.1%,
to 17117. The S&P 500 index rose less than 0.1% to 2000, and
the Nasdaq Composite Index edged up less than 0.1% to 4572.
Stocks drifted between slight gains and losses after Tuesday's
quiet trading session, when the S&P 500 made its 30th record
close for the year and the Dow hit a fresh intraday high.
There was little economic news on the calendar Wednesday, so
traders instead eyed the latest news on high-profile deals.
Broadly, a rising level of deals activity has helped support the
U.S. stock market this year, say investors and strategists. Paul
Karos, senior portfolio manager with Whitebox Mutual Funds, said
that he is buying shares of some companies that could attract
activist investors' involvement.
"Deals activity is likely to continue," said Mr. Karos, who
helps manage $100 million in the Whitebox Market Neutral Equity
Fund. "So we're looking for names where there are strong
fundamentals, and where there might be activist potential."
A deal for Burger King Worldwide to buy Tim Hortons Inc., backed
by investor Warren Buffett, came under criticism. The deal would
allow the hamburger chain to move its headquarters to Canada in a
so-called tax inversion. Shares of Burger King fell 3.4%, and
shares of Tim Hortons shed 1.6%.
Chinese e-commerce giant Alibaba Group filed fresh financial
results ahead of its initial public offering, which is expected
next month. Yahoo Inc., which owns a chunk of the company, gained
0.7%.
"The Alibaba IPO is going to be enormous for Wall Street," said
Michael Purves, chief global strategist for Greenwich, Conn.-based
brokerage firm Weeden Co.
The Dow has gained 3.2% and the S&P 500 is up 8.2% for the
year, through Tuesday's close. The S&P 500 has recovered from a
mid-July swoon, caused in part by a flare-up in concerns about
Ukraine and the Middle East. The Dow isn't far behind, hovering
0.2% below its July 16 record as of Tuesday's close.
Treasury prices continued to push higher, with the yield on the
10-year note remaining near its lowest level since June 2013. In
recent trading, the yield on the benchmark 10-year note fell to
2.371%, according to FactSet.
European stocks were mixed, with the Stoxx Europe 600 edging up
0.1%. Expectations for further easing from the European Central
Bank have been building in the wake of continued weak economic data
and remarks from ECB President Mario Draghi last week.
In other corporate news, Tiffany Co. rose 1% after it reported
better-than-expected second-quarter results and lifted its earnings
outlook for the year.
In commodity markets, crude-oil futures fell 0.4% to $93.53 a
barrel. Gold futures slipped 0.2% to $1,283.20 an ounce.
Write to Alexandra Scaggs at alexandra.scaggs@wsj.com