S&P 500 Posts First-Ever Finish Above 2,000 -- U.S. Commentary

(RTTNews) - U.S. stocks edged higher on Tuesday, with the S&P 500 posting its first-ever finish above the 2,000 mark as strong economic data and a flurry of merger news contributed to buying interest.

Led by energy stocks, the S&P 500 rose 2.1 points, or 0.1%, to 2,000.02 after touching an intraday record just above 2,005. The index first broke above 2,000 on Monday.

The Dow Jones Industrial Average also set all-time highs today, led by Pfizer. The Dow gained 29.83 points, or 0.17%, to 17,106.70.

The Nasdaq gained 13.29 points, or 0.3 percent, to 4,570.64.

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 fell 4.5%.

Hewlett-Packard (HPQ) is recalling hazardous power cords. The company warned the cords can overheat. Shares were up 2%.

Apple (AAPL) has offered to replace iPhone 5 batteries which may be defective. The recall effects devices suddenly that experience shorter battery life or need to be charged more frequently. Shares were down 0.65%.

Google (GOOG) was flat after the search engine giant said it acquired special-effects upstart Zync.

Amazon (AMZN) will purchase gaming site Twitch for about $970 million in cash by the end of the year. The confirmation of sale contradicts previous rumors that Google had reached a deal to buy the company for $1 billion. Amazon added 2.3%.

Orbitz Worldwide (OWW) said American Airlines Group has withdrawn its fares from the online travel website. Orbitz lost 4.5%.

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 6.8%.

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.