By Alexandra Scaggs
U.S. stocks ended a quiet Wednesday session little changed,
while the S&P 500 made a small advance to another record
close.
The S&P 500 index tacked on 0.10 point, less than 0.1%, to
2000.12, its 31st record this year. The index closed above 2000 for
the first time Tuesday.
The Dow Jones Industrial Average advanced 15.31 points, or 0.1%,
to 17122.01. The Nasdaq Composite Index edged down 1.02 points,
less than 0.1%, to 4569.62.
Stocks drifted between slight gains and losses for much of the
session. Trading was the slowest for any full session this year,
with the Dow trading in its third-narrowest range this year, and
moving just 44 points between its high and low. The S&P 500
traded in its seventh-smallest range this year.
"Volumes are incredibly light," said Ian Winer, director of
equity trading at Wedbush Securities. But after a dismal summer for
trading, "people are just wondering whether that matters... it's
less of a powerful [sentiment] indicator than it might have been in
years past."
There was little economic news on the calendar, so investors
instead eyed the latest corporate news and high-profile deals.
Shares of a handful of retailers were bolstered by strong
quarterly reports. Retailers have struggled this year, with the
SPDR S&P Retail exchange-traded fund up 1.6% to the broader
market's 8.2% advance.
"The industry has been under a dark cloud for so long," said
Lawrence Creatura, who manages $702 million in the Federated Clover
Small-Cap Value fund. "Expectations are practically subterranean...
[but] even industries that are under pressure can be mispriced, and
that seems to be where we're at with some retailers."
Express Inc. rallied 13% after its results exceeded Wall
Street's forecasts, and it lifted its full-year forecast. Michaels
Cos. jumped 8.2% after its sales were stronger than expected, and
it raised its outlook for the year.
Tiffany Co. gained 1% after reporting strong results and lifted
its projections for the year.
Corporate earnings growth and persistently low interest rates
have helped support this year's advance in U.S. stocks, which has
brought benchmarks to record levels.
Stocks have mostly recovered from a mid-July swoon sparked by
armed conflicts in Ukraine and the Middle East. In recent sessions,
the S&P 500 has recouped all of its 3.9% loss and hit new
highs, and the Dow has recovered a large part of its 4.5% decline.
It closed Wednesday just 0.1% below its record high.
A rising level of deals activity has also helped support the
market this year, say investors and strategists. Paul Karos, senior
portfolio manager with Whitebox Mutual Funds, said 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 2.1%, and
shares of Tim Hortons shed 1.7%.
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 part of the company, gained
1%.
Treasury prices continued to push higher, with the yield on the
10-year note remaining near its lowest level since June 2013. The
yield on the benchmark 10-year note fell to 2.361%, its
second-lowest level this year.
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 commodity markets, crude-oil futures edged up less than 0.1%
to $93.88 a barrel. Gold futures slipped 0.1% to $1,281.90 an
ounce.
Write to Alexandra Scaggs at alexandra.scaggs@wsj.com