By RTT News,
August 26, 2014, 02:15:00 PM EDT
S&P 500 Rises Above 2,000 - U.S. Commentary
(RTTNews.com) - Stocks are showing some modest gains in mid-afternoon trading on Tuesday. The advance has taken the S&P 500 above the 2,000 mark, as strong economic data contributed to buying interest.
Consumer confidence in the U.S. improved for the fourth consecutive month in August, fueling hope that the U.S. economy is starting to build steam. The Conference Board's consumer confidence index rose to 92.4 in the month, its highest level in almost 7 years.
Orders for U.S. durable goods surged by a record 22.6% in July as Boeing signed a record number of contracts for new jetliners. The figure measures orders for items meant to last at least 3 years - big ticket items like airplanes and household appliances.
Durable good orders is considered one of the most volatile economic indicators, since large orders for high-priced items can cause large month-to-month swings. Still, it is seen as a good measure of the heavy manufacturing sector.
In corporate news, Burger King Worldwide ( BKW ) has reached a deal to buy Canadian coffee and doughnut chain Tim Hortons, Inc. (THI, THI.TO). As part of the transaction, Burger King will shift its base to Canada, allowing it to avoid U.S. corporate taxes. Shares of Burger King have fallen 3.7%.
Meanwhile, consumer electronics retailer Best Buy ( BBY ) announced a profit that fell from last year, with revenues dropping both in the U.S. and overseas. Best Buy's shares have declined 6.7%.
Looking overseas, European stocks continued to advanced on Tuesday, bolstered by signs the U.S. economic recovery is on track. France's CAC 40 led the advance among the region's major averages, climbing 1.2%. Germany's DAX index rose 0.8% and the U.K.'s 100 pushing higher by 0.7%.
Asian stocks turned in a mixed performance on Tuesday, despite a record close on Wall Street overnight.
Chinese shares fell on concerns that a batch of initial public offerings opening for subscriptions later in the week will put pressure on market liquidity. China's benchmark Shanghai Composite index fell 1.0%. Japanese shares slipped 0.6%, while Seoul shares rose.
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