By Alexandra Scaggs
U.S. stocks pushed higher midday Wednesday, on track to extend a
two-day win streak.
Trading was quiet, however, as investors looked ahead to the
release of minutes from the Federal Reserve's latest
monetary-policy meeting at 2 p.m. Eastern.
The Dow Jones Industrial Average tacked on 32 points, or 0.2%,
to 16951. The S&P 500 index gained two points, or 0.1%, to
1984, with industrial stocks leading the benchmark higher.
Technology stocks lagged, with the Nasdaq Composite Index little
changed, gaining less than 0.1% to 4528. The tech sector of the
S&P 500 was nearly flat as well.
Stocks rose Tuesday, which marked the third-slowest full trading
day of the year. The Dow gained 0.5% to 16919.59 and the S&P
500 rose 0.5% to 1981.60.
Central bankers are in the spotlight this week, between the Fed
meeting minutes and a closely watched annual gathering of central
bankers in Jackson Hole, Wyo., where Fed Chairwoman Janet Yellen
and European Central Bank President Mario Draghi are scheduled to
speak later this week.
Investors will be eyeing both the minutes and the speeches to
determine the outlook for central-bank policy. Many say that
persistently low interest rates have supported stock-market gains
this year by keeping bond yields low and pushing investors to
search for yield in riskier parts of the market.
As a result, "you're getting a lot of people crowded into pretty
small spaces where they think there's opportunity," said Ralph
Segall, chief investment officer of Segall Bryant & Hamill,
which manages $9.5 billion. "This is a time you're worried about
making sure you don't get run over."
Mr. Segall said that U.S. stocks could be vulnerable to a sharp
selloff if investors' hunt for yield changes course when the Fed
signals it will raise rates. As a result, his team has been buying
stocks that trade at relatively low valuations, in hopes those
stocks will hold up if broader stock benchmarks take a dive.
Stocks in the U.S. and Europe have recently staged a recovery
from a mid-July pullback, which was sparked by a bout of
geopolitical fears and concerns about the end of the Fed's loose
monetary policy. As of Tuesday's close, the Dow was off 1.3% from
its July 16 record and the S&P was just 0.3% below its July 24
record.
European stocks were mostly lower, with the Stoxx Europe 600
Index down 0.1% in recent trading.
"There's a lot of mixed sentiment" from investors in Europe,
said Michael Antonelli, sales trader with Robert W. Baird. He
recently visited Baird clients in the region, and said many "are on
the fence."
In corporate news, Home Depot led the Dow higher, gaining 1.9%.
That advance came on the back of Tuesday's 5.6% gain on strong
second-quarter earnings and upbeat housing-market data. Its
competitor Lowe's was little changed, after reporting strong
second-quarter results but lowering its sales outlook for the
year.
PetSmart Inc. said it would explore strategic alternatives,
including a possible sale. The company said it would implement a
cost-reduction program. Shares rose 0.3%.
In commodity markets, crude-oil futures rose 0.2% to $93.07 a
barrel. Gold futures slipped 0.2% to $1,294.70 an ounce.
Write to Alexandra Scaggs at alexandra.scaggs@wsj.com