* Dow, S&P 500 hit intraday record highs
* Homebuilders rally; Keurig up on Coke's plan to raise
* April retail sales up 0.1 pct, less than expected
* Dow up 0.1 pct; S&P 500 up 0.1 pct; Nasdaq off 0.2 pct
(Updates to early afternoon)
By Caroline Valetkevitch
NEW YORK, May 13 U.S. stocks mostly edged higher
on Tuesday, with the S&P 500 briefly rising above 1,900 for the
first time and more developments on the deal front helping
Both the Dow and the S&P 500 hit record intraday highs and
then pulled back a bit, holding slim gains in afternoon trading.
In contrast, the Russell 2000 index of small-cap stocks
was down 0.7 percent.
"Technically new highs are usually a bullish event, but
we're not seeing news to really inspire people, so we're holding
in here at these new highs," said Michael O'Rourke, chief market
strategist at JonesTrading in Greenwich, Connecticut.
Homebuilders' shares gained, while the common stock of
mortgage finance giants Fannie Mae and Freddie Mac
jumped as Federal Housing Finance Agency Director Mel
Watt laid out new policies that could make it easier for many
Americans to obtain mortgages. Fannie Mae shot up 8.3 percent to
$4.59 while Freddie Mac jumped 6.9 percent to $4.49.
Keurig Green Mountain Inc was the S&P 500's biggest
percentage gainer, up 9.6 percent at $121.30 after Coca-Cola Co
said it will raise its stake in the company, the maker of
the popular Keurig one-cup coffee brewer, to 16 percent from 10
The Dow Jones industrial average rose 19.91 points or
0.12 percent, to 16,715.38. The S&P 500 gained 1.69
points or 0.09 percent, to 1,898.34, The Nasdaq Composite
dropped 6.36 points or 0.15 percent, to 4,137.503.
The dip in the Russell 2000 follows its biggest daily
percentage gain since early March. At its session low on Friday,
the index was down exactly 10 percent from the intraday record
high set in early March.
O'Rourke said he expects more consolidation in the Russell
2000, given how long it had outperformed the S&P 500.
Among homebuilders, the stock of D.R. Horton Inc rose
2.3 percent to $23.11. The PHLX housing sector index
gained 0.7 percent.
In deal news, DirecTV shares fell 0.8 percent to
$86.49 a day after sources told Reuters that AT&T Inc was
in active talks to buy the company in a deal that could be worth
close to $50 billion. AT&T's stock dropped 1.2 percent to
Data did little to change the view that the U.S. economy is
poised for faster growth this quarter. Retail sales rose 0.1
percent in April, less than expected, though the March reading
was revised upward.
(Editing by Bernadette Baum, Nick Zieminski and Jan Paschal)