* U.S. consumer confidence hits highest since October 2007
* Best Buy tumbles after results, DSW rises
* Digital Ally gains further, has tripled this month
* Indexes up: Dow 0.4 pct, S&P 0.3 pct, Nasdaq 0.3 pct
(Updates to midday trading)
By Ryan Vlastelica
NEW YORK, Aug 26 U.S. stocks rose on Tuesday,
with both the Dow and S&P 500 hitting fresh intraday records on
the back of strong consumer data suggesting the market's
long-running rally could continue.
The day's gains were broad, with only the telecom
and utility sectors lower on the day. Both groups are
viewed as defensive plays that underperform in periods of
economic expansion. Energy shares, which are highly
correlated to the pace of growth, led the day's gain with a 0.8
The S&P climbed back above 2,000, which it had breached for
the first time on Monday. With Tuesday's move, both the Dow and
the S&P have risen in 10 of the past 13 sessions, while the
Nasdaq is up for 11 of the past 13 sessions. However, much of
the market's recent gains have come on low volume, suggesting
many traders may be reluctant to jump in at current levels.
"It's hard to read too much into today's activity, since
volume is so low. People aren't going to do anything too
aggressive until there's some kind of catalyst, either positive
or negative," said Michael O'Rourke, chief market strategist at
JonesTrading in Greenwich, Connecticut. "We're still in an
uptrend, but it will be tough to move significantly higher from
U.S. consumer confidence rose more than expected in August,
climbing to its highest since October 2007. Separately, U.S.
durable goods orders jumped 22.6 percent in July, the biggest
gain on record, though the number was skewed by strong
international demand for aircraft. Excluding transportation,
orders fell 0.8 percent.
The market's momentum is still seen as intact and the S&P's
price-to-earnings ratio is within historical norms, leading many
analysts to believe stocks are not overvalued. Nonetheless,
pronounced further gains may be a challenge amid potential
headwinds such as a reduction in Federal Reserve stimulus and a
simmering conflict between Ukraine and Russia.
The Dow Jones industrial average rose 66.4 points or
0.39 percent, to 17,143.27, the S&P 500 gained 6.1 points
or 0.31 percent, to 2,004.02 and the Nasdaq Composite
added 15.00 points or 0.33 percent, to 4,572.35.
Best Buy Co Inc fell 5.1 percent to $30.35 after the
electronics retailer reported second-quarter revenue that missed
expectations and forecast a drop in same-store sales in the
second half of the year. DSW Inc rose
8.5 percent to $30.79 after adjusted earnings topped forecasts.
Digital Ally Inc extended its meteoric rise,
climbing 17 percent to $14.62 on heavy volume. The recent fatal
police shooting of an unarmed black teenager in Missouri has
fueled interest in the company's wearable camera, and the stock
has almost quadrupled this month alone.
Amazon.com Inc late Monday agreed to buy
live-streaming gaming network Twitch Interactive for about $970
million in cash. Shares rose 2.3 percent to $341.84.
(Editing by James Dalgleish)