* S&P 500 coming off first close above 2,000
* Upswing seen as intact but volume has been light
* Tiffany rises after results, Chico's lower
* Indexes: Dow, S&P flat, Nasdaq down 0.1 pct
(Updates to open)
By Ryan Vlastelica
NEW YORK, Aug 27 U.S. stocks were flat on
Wednesday as investors found few reasons to extend a rally that
has taken indexes to repeated records, even though market
valuations were not seen as unduly stretched.
The S&P 500 closed above 2,000 for the first time ever on
Tuesday, while the Dow Jones industrial average also ended near
a high. Both indexes have risen in 10 of the past 13 sessions,
and the S&P has closed at a record 30 times this year, according
to S&P Dow Jones Indices.
The gains have come without any correction since 2012,
prompting analysts to call for a pullback, especially such
potential headwinds as a reduction in Federal Reserve stimulus
and the conflict between Ukraine and Russia. Much of the recent
gains have come on low volume, suggesting investors are wary of
jumping in at current levels.
Still, the S&P's price-to-earnings ratio is within
historical norms, suggesting stocks are not overvalued, though
further pronounced gains may be a challenge, given a dearth of
"Earnings are good and rates are low, which creates the kind
of environment that will keep pushing up markets gradually,"
said David Kelly, chief global strategist for JPMorgan Funds in
New York. "I'm not concerned about valuation yet, especially
compared to fixed income, but I see a yellow light instead of a
The Dow Jones industrial average fell 7.23 points or
0.04 percent, to 17,099.47, the S&P 500 lost 1.06 points
or 0.05 percent, to 1,998.96 and the Nasdaq Composite
dropped 5.59 points or 0.12 percent, to 4,565.05.
Tiffany & Co rose 1.6 percent to $102.38 after
reporting second-quarter revenue that topped expectations and
raising its full-year profit view. Chico's FAS
Inc fell 5 percent to $15.23 after its results.
Analog Devices Inc was the biggest decliner on the
S&P 500, down 3 percent to $50.62 a day after reporting its
Digital Ally Inc fell 3.3 percent to $13.80
following a massive rally that has lifted shares 260 percent in
August alone. The wearable camera maker has reported heightened
demand since Aug. 9, when a white police officer shot and killed
an unarmed black teen in Ferguson, Missouri, triggering weeks of
The situation between Russia and Ukraine has faded as a
market driver. In comments that could escalate the standoff,
however, Ukrainian Prime Minister Arseny Yatseniuk said Kiev
knew of plans by Russia to halt gas flows this winter to Europe.
(Editing by Chizu Nomiyama)