* Pfizer rises after results, boosting the Dow
* Apple shares volatile following results, outlook
* Retail sales dip in Sept, shutdown weighs on confidence
* Indexes up: Dow 0.3 pct, S&P 0.2 pct, Nasdaq 0.1 pct
By Ryan Vlastelica
NEW YORK, Oct 29 (Reuters) - U.S. stocks rose modestly onTuesday, with the market's upward momentum continuing as the S&P500 hit another record high and drug company Pfizer rallied onits results.
The gains came despite some weak economic data, whichunderpinned expectations that the U.S. Federal Reserve wasunlikely to begin reducing its stimulus policy.
Volatile movement by Apple Inc following itsresults also capped gains. With the S&P 500 on track for itsninth rise out of the past 10 sessions, some analysts said therally may be running out of steam.
The Dow Jones industrial average was up 39.74 points,or 0.26 percent, at 15,608.67. The Standard & Poor's 500 Index was up 3.77 points, or 0.21 percent, at 1,765.88,exceeding Monday's record of 1,762.11. The Nasdaq CompositeIndex was up 2.46 points, or 0.06 percent, at 3,942.59.
Equities have been on a tear for the past couple weeks, withthe benchmark S&P 500 hitting a series of record highs onexpectations the Federal Reserve will keep its bond buying inplace after its policy committee meets Tuesday and Wednesday.The Dow is less than 1 percent away from its all-time closinghigh.
"The market is becoming more selective right now," saidKaufman. "We still don't have many sellers, but buying isbecoming subdued. At some point the selling will kick in andwe'll see a pullback."
Pfizer Inc rose 1.3 percent to $31.13, boosting theDow after the pharmaceutical company reported third-quarterearnings that beat expectations.
Apple late Monday forecast first-quarter revenue of $55billion to $58 billion, compared with expectations for $55.65billion. Shares rose as much as 1.8 percent in early trading butsubsequently dipped 0.2 percent to $528.09.
"Apple had a strong report and that's helping the market atlarge given how influential it is in its size," said WayneKaufman, chief market analyst at Rockwell Securities in NewYork. "We've been recommending the stock for a while, and as itis entering what is typically its strongest period, I don'tforesee too many problems for the stock from here."
Aetna Inc reported adjusted third-quarter earningsthat missed expectations and gave a full-year profit outlookthat was largely below estimates. The stock fell 1.5 percent to$60.84.
With half of S&P 500 companies having reported, 69.1 percenthave topped profit expectations, above the long-term average of63 percent, according to the latest Thomson Reuters data.However, only 53.9 percent have beaten revenue estimates, belowthe 61 percent rate since 2002.
In economic news, U.S. retail sales dipped 0.1 percent inSeptember, compared with economists' expectations of a 0.1percent increase. Producer prices rose 0.1 percent in September,as expected.
Home prices rose 0.9 percent in August, more than had beenexpected, according to the S&P/Case Shiller index. Consumerconfidence fell more than expected in October, dropping to 71.2,below forecasts for a reading of 75. Confidence was likelypressured in the month by the partial U.S. government shutdown.
Michael Kors rose 1 percent to $77.24 afterStandard & Poor's said the company would be added to the S&P 500as of Nov. 1, replacing NYSE Euronext.
Yahoo Inc rose 4.9 percent to $33.93 afterBernstein upgraded the stock to "outperform."
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