* Consumer confidence unexpectedly falls in November
* Tiffany & Co rises after results, JA Solar falls
* Jos. A. Bank rallies after on offer to buy from Men'sWearhouse
* Indexes up: Dow 0.21 pct, S&P 0.23 pct, Nasdaq 0.50 pct
By Chuck Mikolajczak
NEW YORK, Nov 26 (Reuters) - U.S. stocks inched higher onTuesday during a holiday-shortened trading week, but investorsremained cautious about placing new bets after the market'srapid rally has sent indexes to record highs.
The S&P 500 has risen nearly 27 percent this year, primarilybolstered by expectations the Federal Reserve's stimulus willcontinue at least until the end of the year.
Economic data has indicated growth continues to be sluggish,but the Fed's program is expected to keep a floor under equitiesfor as long as the central bank keeps its $85 billion per monthin bond purchases in place.
Still, many investors have also expected a pullback inequities given the scope of the equity rally that has put thebenchmark S&P index on track for its best yearly performancesince 1998 and an unsteady economic recovery.
"Things are OK. They are not great, but we are starting toprice in great here, and it's difficult to be a believer atthese prices. You have to tread carefully," said StephenMassocca, managing director at Wedbush Equity Management LLC inSan Francisco.
"I'm not going to say stocks are ragingly expensive, butthey are not cheap."
In economic news, the Conference Board's index of consumerconfidence unexpected fell in November as Americans worriedabout their future jobs and earnings prospects.
Other data showed permits for future U.S. home constructionrose to the highest in nearly 5-1/2 years in October and pricesfor single-family homes notched big gains in September,suggesting higher mortgage rates have not halted the housingrecovery.
Tiffany & Co jumped 8.5 percent to $87.84 as thebest performer on the S&P 500 after the luxury retailer reportedthird-quarter sales that topped expectations and raised itsforecast for full-year profit. The S&P retail index advanced 0.8 percent.
The Dow Jones industrial average rose 33.33 points or0.21 percent, to 16,105.87, the S&P 500 gained 4.12points or 0.23 percent, to 1,806.6 and the Nasdaq Composite added 19.924 points or 0.5 percent, to 4,014.498.
Trading is expected to be light this week, likely amplifyingvolatility, with financial markets closed Thursday for theThanksgiving holiday. Markets will also close early at 1 p.m.(1800 GMT) the following day, known as Black Friday, theunofficial start of the U.S. holiday shopping season.
Jos. A. Bank Clothiers Inc surged 11.1 percent to$56.22 after Men's Wearhouse offered to buy the companyfor $55 per share in cash. Men's Wearhouse jumped 9.9 percent to$51.72.
JA Solar Holdings Co Ltd stumbled 5.5 percent to$10.05 after reporting a quarterly loss.
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