Wall Street ends slightly higher, helped by acquisitions
By Ryan Vlastelica | February 15, 2013 8:42 AM EST
The S&P 500 eked out a small gain for a third straight session on Thursday, helped by a flurry of merger activity, though investors see no catalysts to lift the market further with major averages near multi-year highs.
The market's slowed advance took the S&P 500 to its highest intraday level since November 2007 on Wednesday. While the index notched its third straight day of gains, none was more than 0.2 percent.
Shares of H.J. Heinz Co
Also supporting the market was data showing the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. The CBOE Volatility index <.VIX> fell 2.4 percent, dropping to 12.67.
"While I'm not bearish, I don't see many upside motivations at these levels," said Donald Selkin, chief market strategist at National Securities in New York, who cited the low level of the VIX as a sign the market was overbought.
Equities have struggled to break above current levels where they have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year.
"We need to digest some of our gains to go higher, but people are so eager to buy on the dips that we're not even seeing dips anymore. People are just chasing the market higher," said Selkin, who helps oversee about $3 billion in assets.
Stocks fell earlier after a report the euro zone's gross domestic product contracted by the steepest amount since the first quarter of 2009. In addition, Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.
The Dow Jones industrial average <.DJI> was down 9.52 points, or 0.07 percent, at 13,973.39. The Standard & Poor's 500 Index <.SPX> was up 1.05 points, or 0.07 percent, at 1,521.38. The Nasdaq Composite Index <.IXIC> was up 1.78 points, or 0.06 percent, at 3,198.66.
American Airlines and US Airways Group
Weakness in Europe contributed to a 5 percent drop in revenue from the region for Cisco Systems
General Motors Co
Only five more stocks rose than fell on the New York Stock Exchange, while 51 percent of Nasdaq-listed shares closed higher.
Volume was light, with about 6.36 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.
(Editing by Nick Zieminski and Kenneth Barry)
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