* Home Depot shares rise as housing recovery boosts results
* Best Buy swings to a profit, but stock drops on margin
* Trina Solar posts profit after string of losses
* Dow down 0.1 pct, S&P down 0.3 pct, Nasdaq down 0.5 pct
By Caroline Valetkevitch
NEW YORK, Nov 19 U.S. stocks edged lower after
the Dow briefly broke above a key level for a second day and
shares of Best Buy dropped on worries about its margins.
Best Buy, one of the S&P 500's best performers this
year, reported a quarterly profit, reversing a year-ago loss,
boosted by cost controls. But there was also concern about
pressure on margins during the holiday season and the stock fell
8.7 percent to $39.76.
A recovery in the U.S. housing market helped Home Depot
top profit and sales estimates for the third quarter,
prompting the No. 1 home improvement chain to raise its
fiscal-year outlook for the third time this year. Its stock
earlier hit a lifetime high of $82.25. Home Depot was up 1.1
percent at $80.50, supporting the Dow and the S&P
The market is seen trading in a tight range as investors
wait for further clues from the Federal Reserve on how soon it
may begin reducing its stimulus. Fed Chairman Ben Bernanke
speaks on "Communication and Monetary Policy" at 7 p.m.
The major indexes continue to face resistance at key levels,
with the Dow breaking above 16,000 briefly and the S&P 500
hovering near 1,800, which it briefly crossed on Monday. Both
indexes were unable to hold those levels at Monday's close.
"Certainly they are psychological levels, and it might have
(significance) for investors who have missed this rally," said
Bruce Zaro, chief technical strategist, Delta Global Asset
Management in Boston.
On the Dow, "we were fairly quick to get from 15,000 to
16,000: 195 days. Typically it bumps its head up and comes back,
and I would expect to stay above these levels during the balance
of 2013," he said.
The Fed's stimulus and ultra-low interest-rate policy have
helped the S&P 500 gain more than 25 percent so far in 2013,
which would make it the best year for the index in a decade.
The Dow Jones industrial average was down 16.92
points, or 0.11 percent, at 15,959.10. The Standard & Poor's 500
Index was down 4.69 points, or 0.26 percent, at 1,786.84.
The Nasdaq Composite Index was down 18.63 points, or
0.47 percent, at 3,930.43.
"I'd say there's a very low probability the Fed does anything
between now and the end of the year," said Dan Veru, chief
investment officer of Palisade Capital Management, which has
$4.5 billion in assets and is based in Fort Lee, New Jersey.
That's likely to mean the market may be able to hold its gains
through the end of the year, he said.
On Wednesday, minutes from the Fed's October meeting are
scheduled to be released. At that meeting, the Fed decided to
stick with its bond-buying program. Investors have been bracing
for a pullback from the stimulus program since the summer.
At Monday's close, Best Buy was up 268 percent so far this
year. Consumer discretionary companies as a group
have outperformed the broader market.
Trina Solar Ltd were down 3.7 percent at $15.60,
reversing an earlier gain. It posted a profit after eight
quarters of losses as solar panel prices held steady after a
four-year decline and the company cut manufacturing costs.
Tesla Motors shares were up 1.7 percent at $123.70
in a volatile session. U.S. traffic safety regulators launched
an investigation into the luxury electric sports car maker's
Model S sedan after three car fires in six weeks.