Stock market closes at another high

Associated Press

NEW YORK

The stock market eked out another all-time high Tuesday, but the gains were slight as investors awaited more news to give them an indication about the strength of the economy.

Homebuilders got a lift after D.R. Horton reported a surge in net orders for the fourth quarter, the second encouraging report from the sector in as many days after Toll Brother reported strong revenue growth Monday. Juniper Networks slumped after the sudden departure of its CEO.

The stock market’s climb to record levels is being underpinned by record corporate earnings. As the reporting period for the third quarter winds down, companies have again managed to post strong earnings, allaying investors’ concern that slowing growth elsewhere in the world would crimp profits.

“The strengthening economy is definitely there in the earnings,” said Jerry Braakman, chief investment officer of First American Trust.

The Standard & Poor’s 500 index rose 1.42 points, or 0.1 percent, to 2,039.68. The Dow Jones industrial average climbed 1.16 points, or less than 0.1 percent, to 17,614.90. The Nasdaq composite climbed 8.94, or 0.2 percent, to 4,660.56.

Ninety percent of companies in the S&P 500 have reported their results for the third quarter. Average earnings for companies in the index are now projected to have risen 8.9 percent in the period, according to analysts at S&P Capital IQ. At the start of last month, earnings were forecast to grow only 6.7 percent.

Stocks likely will move “sideways to up” for the remainder of the year, said James Liu, Global Market Strategist at J.P. Morgan Funds. Earnings “continue to look good,” he said.

Though earnings remain strong, the market could face volatility as investors fret about the potential timing of the Federal Reserve’s first increase in interest rates since 2006.