S&P 500 reaches 1900 for first time; Keurig soars
The Standard & Poor's 500 index briefly crossed 1,900 for the first time Tuesday morning and continues to flirt with S&P 500's record. Keurig Green Mountain stocks also rose by 9.7 percent after Coca-Cola raised its stake in Keurig.
New York — The Standard & Poor's 500 index briefly crossed 1,900 for the first time Tuesday as investors assessed news on retail sales. Keurig Green Mountain jumped on reports that Coca-Cola had raised its stake in the company.
KEEPING SCORE: The Standard & Poor's 500 index was up one point, or 0.1 percent, to 1,898 as of 12:20 p.m. Eastern time, after climbing as high as 1,902 in early trading. The Dow Jones industrial average rose 28 points, or 0.2 percent, to 16,724. The Nasdaq composite slipped nine points, or 0.2 percent, to 4,134.
PERKING UP: Keurig Green Mountain surged $10.73, or 9.7 percent, to $121.43 after Coca-Cola raised its stake in the company. Coca-Cola, the world's biggest beverage company, disclosed in a regulatory filing on Tuesday that a subsidiary now has a 16 percent stake in Keurig.
RETAIL IS DETAIL: Growth of U.S. retail sales slowed in April as consumers shopped less online and cut back on purchases of furniture and electronics. The Commerce Department said retail sales rose 0.1 percent last month after surging 1.5 percent in March. The increase in March followed a harsh winter that curtailed shopping.
THE QUOTE: The stock market is gradually returning to normal after a sustained period of uncertainty following the financial crisis and the Great Recession, said Rob Stein, CEO of Astor Investment Management.
"It would not be surprising for volatility to pick up," said Stein. "But that doesn't take away from the fact that the economic fundamentals are supportive of equity prices."
DRUG SALES: McKesson jumped $5.02, or 3 percent, to $179.25 after the prescription drug distributor said Monday its net income rose 43 percent in its fiscal fourth quarter. Overall earnings got a boost from stronger results in North America and a decrease in costs.
FADING BEAUTY: Elizabeth Arden plunged $7.22, or 20 percent, to $28.45 after the beauty products company reported an unexpected quarterly loss and disclosed it has hired Goldman Sachs to help it explore strategic alternatives.
BONDS AND COMMODITIES: Bond prices rose. The yield on the 10-year Treasury note dropped to 2.61 percent from 2.66 percent late Monday. The price of oil rose 67 cents, or 0.7 percent, to $101.27 a barrel.