MARKET SNAPSHOT: S&P 500 Hits Intraday Record

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Grantham: Another 10% run and then S&P will crash

NEW YORK (MarketWatch) -- U.S. stocks moved higher on Tuesday, with the S&P 500 hitting an intraday record in early trade.

The gains were relatively modest and follow a five-day spell when the S&P 500 moved by less than 0.1% amid low volumes, suggesting that the rally may be losing steam, if not uber cautious.

Market reaction to inflation data, as well as news of a snap election in Japan and better-than-expected data from Germany, has been largely muted ahead of the opening bell.

The S&P 500 (SPX) hit an intraday record, while and the Dow Jones Industrial Average (DJI) moved above its previous closing highs.

The Nasdaq Composite (RIXF) outperformed other benchmarks, moving higher.

In economic news, U.S. producer prices rose unexpectedly, in October, largely because of a spike in an erratic category that measures profit margins for wholesalers and retailers.

Outside of the U.S., as expected, Japanese Prime Minister Shinzo Abe announced plans to call a snap election and to delay a planned sales-tax hike by 18 months, after data showed Monday the country fell into a recession.

A survey from ZEW showed improved German sentiment on the economy -- a sign the country's fortunes may be turning around, the ZEW institute said.

Next on the economic calendar is a release of home builders' index for November due at 10 a.m. Eastern.

Running out of steam: The U.S. stock market remains on course to "run deep into bubble territory" before crashing, wrote Jeremy Grantham, co-founder and chief investment strategist of Grantham Mayo van Otterloo, in a quarterly newsletter released Monday. He said bubble territory starts at 2,250 on the S&P 500, roughly another 10% gain from here. (Also see: A turning point for the S&P? http://www.marketwatch.com/story/decision-making-time-for-the-sp-2014-11-17.)

Billionaire investor Carl Icahn told a Reuters conference on Monday that he's also worried about a market selloff, though not for the next three to five years. (Read more in Need to Know http://www.marketwatch.com/story/bone-chilling-temps-put-the-us-and-the-stock-market-in-a-deep-freeze-2014-11-18.)

Mislav Matejka, strategist at J.P. Morgan Cazenove, said in a note dated Monday it has switched to overweight on the eurozone and cut U.S. equity exposure to underweight. Among the reasons: The eurozone has underperformed sharply, and valuations are improving versus the U.S.

Among Fed speakers, Minneapolis Federal Reserve Bank President Narayana Kocherlakota is schedule to give a speech on clarifying monetary policy objectives, in St. Paul, Minn at 1:30 pm Eastern Time.

Stocks to watch: Home Depot Inc. (HD)(HD)(HD) reaffirmed fiscal-year 2014 guidance and announced earnings per share of $1.15 in the third quarter. Manchester United Ltd. (MANU) posted lower revenue across all segments for its September quarter as the team failed to qualify for the Champions League during one of its worst seasons in more than two decades.

Dick's Sporting Goods Inc. (DKS) profit dipped due to weakness in its gold and hunting segments.

Urban Outfitters Inc. (URBN) reported a drop in third-quarter earnings on Monday, which weighed on shares in late trading.

(Read more about the day's notable stocks in Movers & Shakers column: http://www.marketwatch.com/storyno-meta-for-guid.)

Gold jumps as dollar falls: The news from Japan's Abe weighed on the dollar (USDJPY) versus the yen, which sent gold (GCZ4) prices higher by about 1.3%.The Nikkei 225 index rebounded 2.2% ahead of the announcements from Japan's Prime Minister.

European stocks and the euro (EURUSD) rose after ZEW report. Oil prices (CLZ4) were little changed.

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