Markets Rise on Economic Reports and Deal Talk

By THE ASSOCIATED PRESS August 26, 2014

Encouraging economic news again pushed the Standard & Poor's 500-stock index past 2,000 on Tuesday, a day after the index closed just short of the milestone number. The Dow Jones industrial average was also on track for its own record high.

KEEPING SCORE At midday, the Dow Jones industrial average was up 0.31 percent and the S.&P. 500 rose 0.23 percent. The Nasdaq composite index was up 0.36 percent.

By early afternoon in Europe, Germany's DAX was up 0.2 percent and France's CAC-40 was up 0.6 percent. In Britain, the FTSE 100 added 0.4 percent.

CONFIDENT CONSUMER The Conference Board said its consumer confidence index rose this month to the highest point in nearly seven years. Strong job gains helped buoy the index, which has been rising for four months. The optimism suggests that Americans will be more likely to spend in the months ahead, an important part of the economy.

Interactive Feature | Standard & Poor's 500-Stock Index

THE QUOTE "It tells you that the consumer is probably back in the game," said Jim Russell, senior equity strategist at United States Bank Wealth Management. "We need the consumer to participate fully in the unfolding economic recovery."

HOUSING RED FLAG? A crucial housing market barometer showed that home prices increased at a slower pace in June. The Standard & Poor's/Case-Shiller 20-city home price index rose 8.1 percent in June from a year earlier. That's down from a 9.4 percent gain in May. The deceleration should help ease some of the price pressures on would-be buyers.

GAMING PLAY Amazon rose 2.3 percent after saying that it would buy the video streaming company Twitch for $970 million.

SALES SLUMP Best Buy sank 5.1 percent after the electronics retailer reported that its fiscal second-quarter net income plunged 45 percent as sales weakened.

OVER THERE In Europe, Germany's DAX rose 0.8 percent, while the CAC-40 in France rose 1.2 percent. In Britain, the FTSE 100 rose 0.6 percent after being closed Monday for a holiday. The Shanghai Composite Index in China declined 1 percent, while Tokyo's Nikkei 225 shed 0.6 percent. In Hong Kong, the Hang Seng declined 0.4 percent.

BONDS AND COMMODITIES Bond prices rose. The yield on the 10-year Treasury note was little changed at 2.39 percent. U.S. crude for October delivery rose 54 cents to $93.89 in New York.

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