Wall Street rally stalls, S&P 500 skims November 2007 high
By Angela Moon | February 14, 2013 5:28 AM EST
Stocks were little changed on Wednesday amid investor caution after the S&P 500 index briefly hit its highest intraday level since November 2007.
The benchmark index got a boost from Comcast Corp
Equities have been strong performers until recently, buoyed largely by healthy growth in corporate earnings, which helped the S&P 500 to rise 6.5 percent so far this year. The Dow industrials are about 1 percent away from an all-time intraday high, reached in October 2007.
Those gains have left the market vulnerable to a pullback as investors are likely to take profit amid a dearth of new catalysts. While analysts see an upward bias in stocks, recent daily moves have been small and trading volumes light with indexes at multi-year highs.
"I was expecting a 12-15 percent return on the S&P for the whole year of 2013, and we have done about half of that in just 5-6 weeks," said Jack De Gan, principal at Harbor Advisory in Portsmouth, New Hampshire.
"We will hit resistance, but the fundamentals and (microeconomic) picture are looking good, so if there is a correction, it's going to be a brief one."
The Dow Jones industrial average <.DJI> was down 39.17 points, or 0.28 percent, at 13,979.53. The Standard & Poor's 500 Index <.SPX> was up 0.80 points, or 0.05 percent, at 1,520.23. The Nasdaq Composite Index <.IXIC> was up 7.01 points, or 0.22 percent, at 3,193.50.
Investors shrugged off the latest economic data, which showed that retail sales rose just 0.1 percent, as expected, in January as tax increases and higher gasoline prices restrained spending.
The S&P 500 was well above its 50-day moving average of 1,460.92, a sign the market could be overbought.
Comcast agreed late Tuesday to buy General Electric Co's
Deere & Co
According to the latest Thomson Reuters data, of the 353 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.
Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.
Industrial and construction shares fell, though President Barack Obama, in his State of the Union address late Tuesday, called for $50 billion in spending to create jobs by rebuilding degraded roads and bridges. ID:nL1N0BC2VX]
The Dow Jones Home Construction index <.DJUSHB> was off 0.5 percent.
(Editing by Kenneth Barry and Bernadette Baum)