MARKET SNAPSHOT: S&P 500 Gains, On Pace For First-ever Close Above 2,000

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks showed modest gains on Tuesday afternoon, with the S&P 500 staying on pace for its first-ever finish above the milestone level of 2,000.

A stronger-than-expected reading on consumer confidence provided a lift, and investors took a somewhat mixed report on durable-goods orders in stride.

The S&P 500 (SPX) rose 3 points, or 0.1%, to 2,001 after touching an intraday record just above 2,005. Energy(XLE) fared best among the 10 S&P sectors, while utilities(XLU) and industrials(XLI) performed worst and lost ground.

The Dow Jones Industrial Average (DJI) advanced 40 points, or 0.2%, to 17,117. The blue-chip index achieved an intraday record of 17,153.80, but it's now trading below its July 16 record close at 17,138.20. The Nasdaq Composite (RIXF) tacked on 15 points, or 0.3%, to 4,572, yet again eyeing its highest close since March 2000.

Today's economic data: An August reading on consumer confidence came in at 92.4, above forecasts for 88.5, and a separate report said U.S. home prices rose 1% in June. Orders for U.S. durable goods skyrocketed a record 22.6% in July because of a surge in contracts for Boeing Co. (BA) aircraft, but bookings actually fell for most other industries.

The confidence reading was encouraging, and the durables report was "mixed to positive," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "The backdrop is still favorable for equities to trend higher," he told MarketWatch.

While U.S. economic reports came in mostly positive, some analysts cautioned that overseas headlines still can rattle stocks. It's "any change in the geopolitical landscape that has the potential to cause the most volatility," said Joao Monteiro, analyst at Valutrades, in a note. See: Cease fire reached between Israel and Hamas and Peace-talk hopes diminished for Russia, Ukraine

More on S&P 500 and 2,000: The S&P 500 topped 2,000 for the first time on Monday in intraday action, but the benchmark finished the session about two points shy of that big round number. Read: The S&P 500 topped 2,000. Should you care?

"It's nice that the broad equity markets are meeting milestones, but I think a more attractive, more compelling driver is company earnings," said Sandven of U.S. Bank. He noted that consensus forecasts call for earnings growth of 11% in 2014 and then another 11% gain in 2015.

Movers and shakers: Best Buy Co. (BBY) shares fell nearly 7% amid a sluggish outlook. The struggling retailer is the day's worst performer in the S&P 500.

Burger King Worldwide Inc. (BKW) and Canada-based Tim Hortons Inc. (THI) confirmed Tuesday that they plan to combine to create a new company in an $11 billion deal. They are getting financing help from Warren Buffett's Berkshire Hathaway Inc. (BRK/A). Burger King shares lost 5% after surging Monday, while Tim Hortons' U.S.-listed shares gained 8%.

Shares of Kite Pharma Inc.(KITE) rose 17% after the biotech reported the majority of patients responded positively to its cancer-drug candidate.

Follow more of the day's notable stock moves here.

Other markets: The Stoxx Europe 600 closed higher, and the FTSE 100 came back from a U.K. holiday to play catch-up with gains it missed out on Monday. Asian stocks finished mixed. Gold(GCV4) found some renewed strength as the dollar (DXY) eased.

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