By Mark DeCambre, MarketWatch , Ryan Vlastelica

Russell 2000, Dow transports put in intraday records in morning trade

U.S. stock benchmarks traded higher early Tuesday, testing new peaks for the benchmarks as a recent uptrend put the market on track to extend gains to a third straight session. Tuesday's advance comes as the U.S. equity market is a day away for becoming the longest, uninterrupted bull market in history.

What are the major benchmarks doing

The Dow Jones Industrial Average rose 82 points to 25,837, a gain of 0.3%. The S&P 500 index advanced by 10 points to 2,867, a rise of 0.4%. The broad-market benchmark is a hair's breadth shy of its record at 2,872.87, last put in on Jan. 26.

Meanwhile, the Nasdaq Composite Index climbed 16 points to 7,867, a move of 0.6%.

The Dow Jones Transportation Average gained 0.8% at 11,452, after carving out an intraday peak at 11,475.40, marking the transport gauge's first since Jan. 16, while the small-capitalization Russell 2000 index rallied to an intraday record at 1,713.69, up 0.9%.

All three of the main indexes have risen for three straight sessions; on Monday, the Dow gained 0.4% while the S&P was up 0.2% and the Nasdaq rose 0.1%, with positive sentiment boosted by a pair of multibillion-dollar deals (http://www.marketwatch.com/story/stock-futures-inch-up-putting-indexes-near-records-2018-08-20).

At current levels, the S&P is less than 0.3% below all-time highs while the Nasdaq is about 1% below its record. The Dow is 3% under is own, but it is very close to exiting a correction (http://www.marketwatch.com/story/the-dow-is-on-the-verge-of-busting-out-of-correction-phase-for-the-1st-time-in-6-months-2018-08-20) it has been mired in since February.

Don't miss:Stocks may be finally about to break out of this trading range (http://www.marketwatch.com/story/stocks-may-be-finally-about-to-break-out-of-this-trading-range-2018-08-20)

What's driving the market?

With the second-quarter earnings season essentially over and no economic data on tap, investors are turning their attention to upcoming news from the Federal Reserve. The minutes from the central bank's latest meeting will be released on Wednesday, and on Friday, Fed Chairman Jerome Powell will give a speech at the Fed's annual summer retreat in Jackson Hole.

Both the minutes and the speech will be scoured for any insight (http://www.marketwatch.com/story/feds-powell-may-use-jackson-hole-speech-to-discuss-potential-trouble-ahead-2018-08-17) into what the Fed sees as potential problem spots for the economy--in particular, market participants will be looking to hear Powell's thoughts on trade policy and whether the currency crisis in Turkey could spread to other emerging markets or regions--as well as for any clues into the Fed's policy plans on interest rates.

Don't miss:Here's how Jackson Hole could impact the dollar, bonds and emerging markets (http://www.marketwatch.com/story/heres-how-the-jackson-hole-gathering-may-influence-the-dollar-bonds-and-emerging-markets-2018-08-20)

The speech could take on political overtones this year, after multiple media outlets on Monday reported that President Donald Trump had criticized Powell (http://www.marketwatch.com/story/trump-ramps-up-criticism-of-powell-reports-2018-08-20). Trump said he was "not thrilled" with the Fed chairman, who he had appointed to replace Janet Yellen, and that he expected "more help" from the central bank. Reuters reported that Trump said he would continue criticizing the Fed should it continue to raise short-term interest rates, which the central bank has indicated it will do at a steady clip.

This isn't the first time Trump has called out the Fed for raising rates. When he did so in July, Powell stressed that the Fed operated independently of political considerations.

Separately, investors are continuing to monitor trade relations between the U.S. and its major trading partners, with talks between the U.S. and China set to resume on Wednesday. While market participants are optimistic that progress could be made in the talks--potentially avoiding a potential trade war, which most analysts said would be a massive headwind for global economic growth--few expect the issue to be resolved.

On Monday, President Donald Trump told Reuters that he has "no time frame" (http://www.marketwatch.com/story/trump-wary-of-perjury-trap-says-he-could-intervene-in-mueller-probe-2018-08-20) for ending the trade dispute, and that he didn't "expect much" from the talks. His administration is also moving forward with tariffs (http://www.marketwatch.com/story/even-with-trade-talks-on-tap-us-moves-forward-on-new-tariffs-against-china-2018-08-20) that cover $200 billion in Chinese goods.

Meanwhile, U.S. stocks on Wednesday will mark 10 years and officially garner the title of the longest bull market on record, from the March 9, 2009, low, which represented the low of the financial crisis and which many consider the birth date of the current bull market.

Read:This bull market in U.S. stocks stands just a day away from the history books (http://www.marketwatch.com/story/the-stock-market-is-about-to-make-history-2018-08-14)

What are market analysts saying?

"I think that this is optimism on at least some partial resolution of the trade negotiations as investors are expecting progress [on that front]," Kate Warne, investment strategist at Edward Jones, told MarketWatch, referring to the market's recent rise.

"If we reach new highs that's great but I think it would be a reflection of the positive underlying fundamentals of very positive earnings growth and modest interest rates," Warne said.

What stocks are in focus?

Toll Brothers Inc. (TOL) rose nearly 12% after it reported its third-quarter results (http://www.marketwatch.com/discover) and gave a full-year sales outlook.

Coty Inc.(COTY) fell 6% after it reported fourth-quarter revenue that missed expectations (http://www.marketwatch.com/story/coty-shares-slide-33-premarket-after-revenue-miss-2018-08-21), although its adjusted profits topped forecasts by a penny per share.

Medtronic PLC (MDT) gained 4.3%. The medical device company posted first-quarter earnings and revenue that beat expectations (http://www.marketwatch.com/story/medtronics-stock-rallies-after-earnings-revenue-beat-expectations-2018-08-21). It also raised its organic full-year revenue outlook.

Kohl's Corp. (KSS) reported adjusted second-quarter earnings that beat expectations, along with revenue that was ahead of forecasts. It also raised its full-year adjusted profit view. The stock fell 2.5% in early trade.

J.M. Smucker(SJM) reported adjust first-quarter earnings that beat expectations. Shares of the company were off 0.4%.

After the market closes, Urban Outfitters Inc.(URBN) and Red Robin Gourmet Burgers Inc.(RRGB) are expected to report. Urban Outfitters shares were up 0.7%, while those for Red Robin showed a slight rise of 0.5%.

Shares of discount brokers slumped after a report that JPMorgan Chase & Co. (JPM) was taking aim with a plan to launch a new digital brokerage service that comes with free trades. TD Ameritrade Holding Corp.'s stock (AMTD) tumbled by about 6%, Charles Schwab Corp. (SCHW) shed 3.2% and E*Trade Financial Corp.'s stock (ETFC) slid 3.9% ahead of the open. J.P. Morgan's stock, meanwhile, gained 1.1%.

(END) Dow Jones Newswires

August 21, 2018 11:01 ET (15:01 GMT)