* S&P 500 coming off first close above 2,000
* Upswing seen as intact but volume light
* Tiffany rises after results, Chico's lower
* Dow, S&P and Nasdaq all move less than 0.1 pct
(Updates to midday trading)
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 on
Tuesday, while the Dow Jones industrial average also ended near
a record 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 given such
potential headwinds as a reduction in Federal Reserve stimulus
and the tensions 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 rose 5.35 points or
0.03 percent, to 17,112.05, the S&P 500 gained 0.09 point
or 0 percent, to 2,000.11 and the Nasdaq Composite added
1.06 points or 0.02 percent, to 4,571.70.
A mere 4.54 points separated the S&P's high and low on
Wednesday, making for the narrowest one-day trading range since
Tiffany & Co rose 1 percent to $101.79 after
reporting second-quarter revenue that topped expectations and
raising its full-year profit view. Chico's FAS
Inc fell 3.1 percent to $15.53 after its results.
Analog Devices Inc was one of the biggest decliners
on the S&P 500, down 3.2 percent to $50.56 a day after reporting
Digital Ally Inc fell 8.2 percent to $13.11,
pulling back after a massive rally that had lifted shares 235
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 protests.
The tension 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,
something Russia later denied.
(Editing by Chizu Nomiyama and James Dalgleish)