New York – Wall Street ended an erratic session little-changed Tuesday as investors upbeat about the latest round of takeover activity remained hesitant to take the market higher ahead of new economic data.
While stocks moved sideways, Treasury yields rose to a three-month high.
Investors have viewed acquisitions as a sign corporate executives are comfortable with the economy. However, stocks failed to gain much momentum as several deals were announced Tuesday, including billionaire investor Kirk Kerkorian’s plans to buy the Bellagio Hotel & Casino from MGM Mirage Inc.
“There’s no real drivers out there, and what we’re waiting for is some more economic data,” said Todd Salamone, director of trading at Schaeffer’s Investment Research in Cincinnati.
Further direction might come Thursday, when the Commerce Department reports on durable goods for April. The report could offer insight into the health of consumer spending, which accounts for two-thirds of U.S. economic activity.
With Tuesday bereft of major economic reports, Wall Street was watching talks between U.S. and Chinese government officials about trade and foreign-exchange policy. Chinese stocks rose to a record high for the second day in a row Tuesday, as investors there were encouraged by expectations for a stronger yuan and robust housing demand.
The Dow Jones industrials fell 2.93, or 0.02 percent, to 13,539.95.
Broader stock indexes were mixed. The Standard & Poor’s 500 slipped 0.98, or 0.06 percent, to 1,524.12. The index, considered by market professionals the best indicator of stock performance, passed its record close of 1,527.46 on Monday and again Tuesday for the first time since 2000.
The Nasdaq composite index rose 9.23, or 0.36 percent, to 2,588.02.
