* Home Depot shares rise as housing recovery boosts results
* Best Buy swings to a profit, but stock drops on marginconcerns
* Trina Solar posts profit after string of losses, sharesclimb
* Dow up 0.2 pct, S&P up 0.02 pct, Nasdaq up 0.04 pct
By Caroline Valetkevitch
NEW YORK, Nov 19 (Reuters) - The Dow Jones industrialaverage climbed above 16,000 for a second day, bolstered by arally in Home Depot shares after stronger-than-expectedearnings.
A recovery in the U.S. housing market helped Home Depot topprofit and sales estimates for the third quarter, prompting theNo. 1 home improvement chain to raise its fiscal-year outlookfor the third time this year. Its stock hit a lifetime high at$82.25. At midday, Home Depot was up 1.7 percent at $81,supporting the Dow and the S&P 500.
The major indexes continued to face resistance at key levelsa day after the Dow traded above 16,000 and the S&P 500 topped1,800 for the first time. Both indexes were unable to hold thoselevels at Monday's close.
Markets are seen trading in a tight range as investors waitfor further clues from the Federal Reserve on how soon it maybegin reducing its stimulus program.
"I'd say there's a very low probability the Fed doesanything between now and the end of the year," said Dan Veru,chief investment officer of Palisade Capital Management, whichhas $4.5 billion in assets and is based in Fort Lee, New Jersey.
"I think we're going to be sort of this drift-up marketbetween now and the end of the year. If you're not in themarket, you're looking for any modest pullback to get in. Therejust is a lot of cash and a lot of managers that areunderperforming because they've been perhaps too cautious."
The Fed's stimulus and ultra-low interest-rate policy havehelped the S&P 500 gain more than 25 percent so far in 2013,which would make it the best year for the index in a decade.
The Dow Jones industrial average was up 26.26 points,or 0.16 percent, at 16,002.28. The Standard & Poor's 500 Index was up 0.43 of a point, or 0.02 percent, at 1,791.96. TheNasdaq Composite Index was up 1.59 points, or 0.04percent, at 3,950.66.
Investors will look for any changes in tone from the Fed asChicago Fed President Charles Evans speaks on current economicconditions and monetary policy at 2:15 p.m. EST (1915 GMT) andFed Chairman Ben Bernanke speaks on "Communication and MonetaryPolicy" at 7 p.m. (0000 GMT).
On Wednesday, minutes from the Fed's October meeting arescheduled to be released.
Among the day's drags, Best Buy reported a quarterlyprofit, reversing a year-ago loss, boosted by tight costcontrols. But there was also concern about pressure on marginsduring the holiday season and the stock fell 8.4 percent to$39.90.
At Monday's close, Best Buy was up 268 percent so far thisyear, among the S&P 500's top percentage gainers for theyear. Consumer discretionary companies as a grouphave outperformed the broader market.
Trina Solar Ltd posted a profit after eight quartersof losses as solar panel prices held steady after a four-yeardecline and the company cut manufacturing costs, driving itsstock up 2.1 percent $16.53. That gain extended the stock's jumpof more than 10 percent in pre-market trading.
Tesla Motors shares reversed a pre-market loss torise 4.9 percent to $127.59. U.S. traffic safety regulatorslaunched an investigation into the luxury electric sports carmaker's Model S sedan after three car fires in six weeks. AtMonday's close, the stock was down 24 percent in November sofar.
- Stocks & Offerings
- Home Depot
- Trina Solar
- Dow Jones industrial average
- Best Buy