NEW YORK — The Dow rose to its highest close of the year Tuesday, putting it within 1 percent of its record. Stocks gained after impressive results from two big consumer brands.
The Dow Jones industrial average rose 47.46 to 14,018.70 Tuesday. It’s now 146 points from its record close of 14,164.53 set in October 2007. The Standard & Poor’s 500 gained 2.42 points to 1,519.43, also close to its record.
In a quiet trading day, stocks were driven higher by beauty products maker Avon and luxury clothing and accessories company Michael Kors, whose results impressed investors. Consumer spending accounts for 70 percent of economic activity in the U.S.
Financial and home building stocks also fared well, led by Bank of America, which notched one of the day’s biggest gains.
Avon’s stock price jumped $3.51, or 20 percent, to $20.79 after the company posted a fourth-quarter loss that wasn’t as bad as analysts expected. The company also hopes to save $400 million by cutting costs. Michael Kors rose $5, or 9 percent, to $62 after reporting earnings that beat analysts’ predictions.
Bank of America was the biggest gainer on the Dow, adding 38 cents, or 3.25 percent, to $12.24. Stocks gaining in the index outnumbered those falling by a ratio of more than 4-to-1.
Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume was lighter than the recent average at 3.3 billion shares.
About 70 percent of companies in the S&P 500 have reported earnings for the fourth quarter. Analysts are projecting that earnings will rise 6.4 percent for the period, an improvement from the 2.4 percent growth reported in the third quarter, according to S&P Capital IQ.
Investors may have become too optimistic about the outlook for stocks, said Uri Landesman, president of hedge fund Platinum Partners.
“The market is priced for perfection,” said Landesman. “The odds of a disappointment are very, very high.”
A decline in bond prices since the beginning of the year has also slowed. The yield on the 10-year Treasury note, which moves inversely to its price, rose 2 basis points to 1.98 percent. The yield was 1.71 percent at the beginning of the year.
In other trading Tuesday, the Nasdaq composite was down 5.51 points at 3,186.49.
Among other stocks making big moves:
Masco jumped $2.22, or 13 percent, to $20.01 after the home improvement and building products company reported earnings that beat analysts’ expectations because of strong demand in North America.
Dun & Bradstreet, a provider of credit and business data, fell $6.60, or 7.7 percent, to $78.68 after the company reported that a fourth-quarter profit that came in below market expectations.
Business, Pages 30 on 02/13/2013