U.S. stocks rose in midday trading today, sending the Standard & Poor’s 500 Index above 2,000, after a report showed the biggest ever jump in durable-goods orders and consumer confidence unexpectedly increased.
Amazon.com Inc. added 2.4 percent after the company said it’s buying video-game service Twitch Interactive Inc. in one of its biggest-ever acquisitions. Best Buy Co. dropped 5 percent after posting a same-store sales decline that was steeper than analysts had projected. Tim Hortons Inc. jumped 9 percent after Burger King Worldwide Inc. agreed to acquire it in a $11.4 billion cash-and-share deal.
The S&P 500 rose 0.2 percent to 2,002.67 at 12:05 p.m. The index touched an intraday record of 2,005.04. The Dow Jones industrial average added 57.60 points, or 0.3 percent, to 17,134.47 today. The Nasdaq Composite Index increased 0.3 percent for a fourth day of gains.
“There’s not a lot of direction in the market so far,” Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. “The 2,000 number got a lot of attention, but let’s get back to basics and see how the economy is doing.”
Data today showed orders for U.S. durable goods jumped 23 percent in July as bookings surged for commercial aircraft. An air show in the U.K. helped drive a 318 percent jump in plane orders, the most January 2011. A 0.5 percent drop in orders for non-military capital goods excluding aircraft last month followed a June increase of 5.4 percent.
The Conference Board’s consumer confidence index rose to 92.4 in August, the highest since October 2007, from a revised 90.3 a month earlier, the private research group said.
The S&P 500 has advanced for the past three weeks and more than $1 trillion has been added to the value of American equities since a two-month low on Aug. 7 amid speculation central banks will continue to keep interest rates near zero even as the economy strengthens.
“I am still bullish on the U.S. market, but I do expect the S&P 500 to consolidate and slip back to 1,950-80 range as it’s due for a rest once it climbs to 2,000,” said Manish Singh, who helps manage $2 billion at Crossbreed Capital in London. “Any dip will be a shallow one. The central-bank and data narrative is still supportive of risk.”
U.S. shares of Canada’s Tim Hortons added 9 percent to $81.47, after rallying 19 percent Monday. Burger King slid 3.2 percent to $31.38, reversing an earlier 2.5 percent gain. The hamburger chain on Monday surged 20 percent after saying it is in talks with Tim Hortons. Burger King will move its headquarters to Canada, enabling the second-largest U.S. burger chain relocate to a lower-tax country.
Premier Inc. rose 5.1 percent to $31.91 after forecasting full-year adjusted earnings of $1.39 to $1.44 a share, exceeding the average analyst estimate of $1.38. The purchasing network owned by health-care providers also agreed to buy software company Aperek Inc. for $48.5 million.
Amazon.com added 2.4 percent to $341.89 after the company said said it’s paying $970 million in cash for Twitch, the online gathering place for gamers. The acquisition gives the Web retailer a forum of more than 55 million monthly active users, where people discuss games or watch others as they play.
DSW Inc., a shoe retailer, jumped 9.7 percent after reporting higher-than-estimated profit.
Best Buy lost 5 percent to $30.38 after the world’s largest electronics chain said second-quarter comparable sales fell 2.7 percent. That was steeper than the 2.2 percent drop forecast by analysts on average. Same-store sales will decline by a “low single digit” percentage rate in the third and fourth quarter, the company said.
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