After Market: Another Record Day; S&P Tops 1,900 for First Time

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More records fell on Wall Street Tuesday, but there are still lots of doubters about the market. The Dow Jones industrial average (^DJI) rose for a fifth straight day, grabbing its second-straight record high along the way. The Standard & Poor's 500 index (^GPSC) briefly topped 1,900 for the first time, and the Dow Transports also set a new high.

Despite the records, or maybe because of them, many investors are worried the market is due for a correction.

Good news about business inventories and small business sentiment was offset by a disappointing increase in retail sales last month. The Dow gained 20 points, the S&P 500 edged slightly higher, but the Nasdaq composite (^IXIC) fell 13 points.

There were no big mergers announced Tuesday, but there was plenty of talk about deals that could happen. Keurig Green Mountain (GMCR) rose 7½ percent on news that Coca-Cola (KO) had boosted its stake in the single cup coffee maker. That prompted speculation that Coke could eventually buy the company outright.

Allergan (AGN) gained another 1 percent after Valeant Pharmaceuticals (VRX) said it plans to increase its hostile takeover offer.

But DirecTV (DTV) fell more than 1 percent despite reports that AT&T (T) is preparing a bid for nearly $50 billion. DirecTV shares have jumped 34 percent over the past six months.

Some homebuilders gained ground after the new head of the agency that oversees Fannie Mae and Freddie Mac said they should focus on making more credit available to potential homebuyers. D.R. Horton (DHI) gained 2 percent, while Lennar (LEN), Pulte (PHM) and KBHome (KBH) all gained about 1 percent.

Most of the big name Internet and social media stocks traded in a fairly narrow range for a change, even though LinkedIn (LNKD) fell 3 percent.

On the earnings front, the web hosting company Rackspace (RAX) jumped 8½ percent after beating expectations.

Drug wholesaler McKesson (MCK) gained more than 3 percent as both net and revenue jumped.

But cosmetics maker Elizabeth Arden (RDEN) tumbled 22 percent after posting an unexpected loss.

And DXP Enterprises (DXPE), which does maintenance and repairs for industrial companies, could use some repairs of its own. It slid 39 percent as both net and revenue fell short of expectations.

What to Watch Wednesday:
  • The Mortgage Bankers Association releases weekly mortgage applications at 7 a.m. Eastern time.
  • The Labor Department releases its Producer Price Index for April at 8:30 a.m.
  • The National Association of Home Builders releases its housing index for May at 10 a.m.
These major companies are scheduled to release quarterly financial statements:
  • Cisco Systems (CSCO)
  • Deere & Co. (DE)
  • Kate Spade & Co. (KATE)
  • Macy's (M)
  • Pinnacle Foods (PF)
  • SeaWorld Entertainment (SEAS)
  • SodaStream International (SODA)
  • Sony (SNE)
-Produced by Drew Trachtenberg.


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elendil3136

Better keep a decent sized cash position for when that correction happens.

May 13 2014 at 9:16 PM Report abuse +2 rate up rate down Reply
Happy-Bday ugly

All propelled by what the fed is doing, creating massive debt and a false economy, because this economy is in very bad shape and getting worse.

May 13 2014 at 7:47 PM Report abuse rate up rate down Reply
ectullis

Is this the result of Obsama printing billions of dollars a month?

May 13 2014 at 7:05 PM Report abuse -3 rate up rate down Reply
1 reply to ectullis's comment
elendil3136

Funny. My reading of the Constitution doesn't show that he has the power to print money. All spending bills must, by law, originate in the House. The Federal Reserve controls the money supply. Contrary to what most people believe, the Fed is not an official government agency. It is a private consortium of bankers, but they allow the President to name the Fed Chairman (How nice of them). Do some research before you open your partisan yap.

May 13 2014 at 9:12 PM Report abuse +1 rate up rate down Reply