U.S. stocks finished mostly higher on Wednesday, with the Dow industrials achieving a closing high as blue-chip Microsoft jumped 4%. The gains came after European equities advanced, helped by factors such as a strong reading on U.K. factories and hopes the European Central Bank may take further easing measures on Thursday. Strategists said there was no specific U.S. headline that triggered buying, suggesting the backdrop for stocks simply remains supportive. "In the absence of bad news, the path of least resistance for equities is up," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. The Dow Jones Industrial AverageDJIA +0.82% climbed 128.66 points, or 0.8%, to end at 15,746.88, topping its prior record close on Oct. 29. The blue-chip index also achieved an intraday record of 15,750.29, finishing just below that level. MicrosoftMSFT -0.29% performed best among Dow components, gaining on news ofprogress in its search for a new CEO. The broader S&P 500 SPX +0.43% advanced 7.52 points, or 0.4%, to close at 1,770.49. The benchmark index was on track to top its Oct. 29 record close, but didn't manage to do so after paring some gains. It also held below its intraday peak of 1,775.22, which it hit Oct. 30. Consumer staples and utilities fared best among S&P sectors Wednesday, while consumer discretionary and health care underperformed. But Microsoft couldn't lift the tech-heavy Nasdaq Composite COMP -0.20% , which erased an earlier gain. The tech-heavy index closed down by 7.92 points, or 0.2%, at 3,931.95, as heavyweight Apple Inc. AAPL -0.31% dipped 0.3%. Social-media stocks also weighedon the Nasdaq. Mark Luschini, chief investment strategist at Janney Montgomery Scott, said theU.K. factories report helped overseas markets, but "there's no real U.S.-related event" that inspired the bulls. He suggested the "underlying backdrop" for stocks is just staying positive. In addition to Wednesday's advances, he pointed to stocks paring most of their losses by Tuesday's close. "That's indicative of a market that's biased to grind upward," Luschini said. Sandven at U.S. Bank also emphasized an encouraging environment for stocks. He cited factors such as a generally positive third-quarter earnings season and constructive investor sentiment, as well as fair valuations and continued expectations the Federal Reserve will hold off until March to taper its bond-buying program. Also read: Is a December taper really off the table? But Sandven also sounded a cautious note, saying a pullback of about 4% for the S&P 500 to its 50-day moving average, a key chart level, would be constructive. Sandven added that might not happen in November or December, given the market generally performs well in those months. "I just think we're a little bit ahead of ourselves," he said. "A modest pullback would be healthy." Wednesday's U.S. economic calendar was light. An index of leading economic indicators for September rose 0.7%, matching expectations. Ahead of the week's highlight — Friday's jobs report — investors will be focused on the ECB meeting and U.S. GDP data, both expected on Thursday. Some economists anticipate that some sort of easing measures will be announced by the ECB, though most are not expecting an interest-rate cut until December. Social-media company Twitter Inc. TWTR 0.00% is expected to price its initial public offering late Wednesday. In a MarketWatch poll, 49% of respondents said they would like to buy Twitter shares. n the earnings front, shares of Tesla Motors Inc.TSLA -0.83% dived and triggered a short-sale circuit-breaker after the electric-car maker only delivered 5,500 Model S units in the third quarter. The stock closed down 14.5%. Humana Inc. HUM +0.62% rose 2% after the health insurer's quarterly report indicated that membership continued to increase, while Abercrombie & Fitch ANF -0.18% fell 13.5% after the teen-apparel retailer late Tuesday said same-store sales sank. European stocks rallied, recouping prior-day losses, with the euro zone composite and services purchasing managers' indexes climbing from initial estimates reported for October. Asia markets were mixed, with a weaker yen supporting Tokyo stocks. Gold and oil prices were higher, while the dollar fell. Source: MarketWatch
