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.
- Cisco Systems (CSCO)
- Deere & Co. (DE)
- Kate Spade & Co. (KATE)
- Macy's (M)
- Pinnacle Foods (PF)
- SeaWorld Entertainment (SEAS)
- SodaStream International (SODA)
- Sony (SNE)