S&P 500 Eclipses 1,900 for First Time, Dow Books Another All-Time High
NEW YORK ( TheStreet) -- The S&P 500 on Tuesday broke above 1,900 intraday for the first time and booked an all-time closing high along with the Dow Jones Industrial Average .
The markets shrugged off a weak April retail sales report after a strong result in the prior month.
The Dow closed up 0.12% to 16,715.44, while the S&P 500 gained 0.04% to 1,897.45. The Nasdaq moved in the opposite direction, sliding 0.33% to 4,130.17.
"We have concerns about the fundamentals -- the median stock in the S&P has an elevated PE (price earnings ratio) and we suspect a correction of 10% to 20% in the market this year would be much more normal (at this point)," said David James, senior vice president of James Investment Research.
- Retail sales in April rose 0.1% from the prior month but were short of expectations for a 0.4% increase. But a revised 1.5% jump in March was the biggest since March 2010, according to the Commerce Department. U.S. import prices fell 0.4% in April after a 0.4% advance in March.
- In stock news, Pfizer
indicated it was open to changing the structure and terms of its proposed $106 billion takeover of AstraZeneca but that it would remain "disciplined on price." The chief executives of both companies are appearing before a U.K. parliamentary hearing to discuss the deal. Pfizer shares rose 0.24%, and AstraZeneca increased 0.63%.
- The European Union's highest court ruled on Tuesday that individuals can ask Google
to remove links to documents in search results for their names, centering on the right "to be forgotten." Google said the decision was disappointing and that it would analyze the implications. Shares traded 0.6% higher.
- Keurig Green Mountain
soared 7.6% after Coca-Cola said it plans to increase its stake in Keurig to 16% from 10%. Coca-Cola was up 0.71%.
dropped 1.2% as Reuters reported that AT&T is in active talks to buy the satellite TV provider. AT&T lost 1%.
- Valeant Pharmaceuticals
said Tuesday it plans to improve its takeover offer for Allergan at the company's May 28 investor day. Allergan shares added 0.98% on Tuesday to $161.28.
- Elizabeth Arden
plunged 22.8% after posting a fiscal third-quarter loss of 84 cents a share after Monday's close, falling short of expectations that it would break even.
- Tech stocks were mixed: Cisco
was off 1.4% and Twitter was more than 1.6% lower, while Amazon and Netflix closed higher.
- China released April retail sales and industrial output , both of which were slightly below expectations. Industrial production slowed to 8.7% in April from a year earlier after rising 8.8% in March, while retail-sales growth slipped to 11.9% from 12.2% over the same period for the world's second-largest economy.
- Investor confidence in Germany fell for a fifth consecutive month during May to its lowest level in more than a year. The ZEW institute said Tuesday that economic expectations for Europe's largest economy dropped to 33.1 down from 43.2 in April. Expectations were for a result of 40 points.
- In international markets, the FTSE closed up 0.31% while Germany's DAX rose 0.54%. The Hang Seng closed 0.41% higher while the Nikkei jumped 1.95%.
- The Dow and S&P 500 closed at record highs on Monday amid Chinese capital markets reforms and a mostly peaceful weekend vote in Ukraine.
-- By Andrea Tse, Jane Searle and Joe Deaux in New York