By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose on Tuesday, with the
S&P 500 hitting an intraday record after closing above 1,900
for the first time. Broad-based gains were led by financials and
utilities sectors.
Analysts are watching trading volumes to see if they will
validate new highs on the S&P 500. The benchmark index closed
at a record level on Friday amid the lightest trading volume this
year.
While headline number on a number of reports on Tuesday were
positive and better than expected, details worried investors.
Orders for big-ticket items climbed thanks to demand for military
equipment, but bookings fell in most civilian categories. Home
prices rose in March for the first time in five months, however
annual growth is still slowing. Consumer confidence edged up in
May, matching expectations. Markets were closed on Monday for
Memorial Day holiday.
The S&P 500 (SPX) rose 9.4 points, or 0.5%, to 1,909.79. The
Dow Jones Industrial Average (DJI) gained 64 points, or 0.4%, to
16,670.71.
The Nasdaq Composite (RIXF) added 38 points, or 0.9%, to
4,224.45.
The Russell 2000 index (RUT) added 14 points, or 1.2%, to
1,139.92.
Follow MarketWatch's live blog of today's stock-market
action.
Colin Cieszynski, chief market strategist at CMC, says that
traders came back from the long-weekend in a good mood.
"Gold is positively hammered and the fact that the S&P 500
is trading above the 1,910 level suggests there is a real flow of
capital back into riskier assets and away from havens,
Cieszynski.
"After new highs in the industrials and transports a few weeks
ago, this is a confirmation that there is breadth to this rally.
However, the fact that the Vix is so low means that investors are
getting complacent, so that is worrying," he added
Quincy Krosby, market strategist at Prudential Financial, said
headline numbers on Tuesday's economic reports were good, but one
could also find negative details.
"Durable-goods orders rose, but capex part actually declined.
Corporations are still hesitant to invest in capital expenditures.
For this market to go higher, companies must deliver top-line
growth, because we know the Fed is winding down the QE," Krosby
added.
U.S. home prices rose in March, but annual growth is slowing
down, with Las Vegas and other "boom-bust" markets posting slower
gains, according to data released Tuesday covering 20 major
cities.
A spike in demand for military hardware boosted orders for U.S.
durable goods in April, but bookings fell in most civilian
categories following even larger increases in the prior month than
previously reported.
The Conference Board said its consumer confidence index in May
rose to 83 -- matching the MarketWatch-compiled economist consensus
-- from 81.7 in April. Both the present situation and expectations
index advanced.
Hillshire soars on acquisition offer
An offer to buy Hillshire Brands Co. (HSH) for $45 a share came
from Pilgrim's Pride Corp. (PPC). Hillshire shares were up 21% to
$44.88. Hillshire earlier this month proposed to buy Pinnacle Foods
Inc. (PF) for $4.3 billion. Pinnacle shares fell 5.9%.
In corporate news, shares in car-parts retailer AutoZone Inc.
(AZO) were slightly higher after the company reported fiscal
third-quarter earnings in line with analysts' expectations.
Gold, oil fall
In other financial markets, European stocks traded mostly
higher, while Asia closed mixed. In Russia, the MICEX blue-chips
index dropped 2.6% as Ukraine's army said it has retaken Donetsk
International Airport, with more than 30 pro-Russian militants
killed in the process, media reports said.
Futures for oil (CLN4) slipped, while futures for gold (GCM4)
fell 1.2%. The dollar (DXY) also traded lower compared with
Friday.
More must-reads from MarketWatch:
Why stocks are being held back from a big breakout
Euroskeptics advance, yet practical results limited
Hong Kong's trial of the century puts system in dock
Subscribe to WSJ: http://online.wsj.com?mod=djnwires