Wall Street little changed near record highs

Invetsors find few incentives to extend rally

US stocks were little changed Tuesday during a holiday-abbreviated week as investors found few incentives to extend a rally that has repeatedly taken indexes to fresh highs.

Wall Street has soared this year, boosted by expectations Federal Reserve stimulus will continue. While some data, including consumer confidence on Tuesday, has indicated that growth continues to be anemic, the Fed's program is expected to keep a floor under equities for as long as it continues.

Still, many investors have called for a pullback given the scope of the equity rally and signs of weakness.

"We're fairly valued in the longer term, but it wouldn't be surprising to see short-term corrections since right now there's no reason to jump into the market in full force," said Mike Sorrentino, the New York-based chief strategist of the Global Financial Private Capital.

 

In the latest data, a reading on consumer confidence fell to 70.4 in November, from 71.2 last month. Analysts were looking for a read of 72.9.

Tiffany & Co jumped 7.3% to $86.86 after the luxury retailer reported third-quarter sales that topped expectations and raised its forecast for full-year profit.

"I have some concerns about discretionary spending for low-end consumers, though the high-end segment looks pretty good," said Sorrentino, who has a position in Tiffany.

Trading is expected to be light this week, likely amplifying volatility, with financial markets closed Thursday for the Thanksgiving holiday. Markets will also close early the following day, known as Black Friday, which heralds the unofficial start of the US holiday shopping season.

The Dow Jones industrial average was up 7.13 points, or 0.04%, at 16,079.67. The Standard & Poor's 500 Index was down 0.63 points, or 0.03%, at 1,801.85. The Nasdaq Composite Index was down 1.24 points, or 0.03%, at 3,993.33.

Wall Street has been on a tear recently, with both the Dow and S&P 500 rising for seven straight weeks. The S&P is up 26.4% this year, while the Nasdaq moved above 4,000 on Monday for the first time in 13 years.

While hopes for continued Fed stimulus have largely buoyed those gains, some recent market volatility has been related to uncertainty over when the program will end. The CBOE Volatility index rose 1.3% on Tuesday, though it remains at levels that are considered historically low, below 13.

"The VIX indicates a certain amount of complacency in the market, but with the Fed holding steady, it seems likely that we'll just stick in a narrow trading range for now," said Donald Selkin, chief market strategist at National Securities in New York.

Jos. A. Bank Clothiers Inc surged 11% to $56.28 after Men's Wearhouse offered to buy the company for $55 per share in cash. Men's Wearhouse rose 5.3% to $49.51.

JA Solar Holdings Co Ltd fell 11% to $9.50 after reporting a quarterly loss.

Stocks were barely impacted by a CaseShiller report Tuesday showing home prices rose 1% in September, more than the 0.8% that had been expected.