Dow, S&P 500 close in on record highs

NEW YORK - The Dow rose to its highest close of the year, putting it within 1 percent of its record. Stocks gained after impressive results from two big consumer brands.

The Dow Jones industrial average closed up 47.46 to 14,018.70 Tuesday. That is nearly 146 points from its record close of 14,164.53 set in October 2007. The Standard & Poor's 500 gained 2.42 points to 1,519.43, also close to its record. The Nasdaq composite was down 5.51 points at 3,186.49.

The Dow has now advanced 7 percent this year, and the S&P 500 is up 6.6 percent.

The 30-member Dow has now closed above 14,000 twice this month.

Beauty products maker Avon's stock price jumped $3.51, or 20 percent, to $20.79 after the company posted a fourth-quarter loss that wasn't as bad as analysts expected. The company also hopes to save $400 million by slashing costs. Luxury clothing and accessories company Michael Kors rose $5, or nearly 9 percent, to $62 after reporting earnings that beat analysts' predictions.

Bank of America was the biggest gainer on the Dow, adding 39 cents, or 3.25 percent, to $12.24. Stocks gaining in the index outnumbered those falling by a ratio of more than four to one.

Two stocks rose for every one that fell on the New York Stock Exchange. Trading was lighter than the recent average at 3.3 billion shares.

About 70 percent of companies in the S&P 500 have reported earnings for the fourth quarter. Analysts are projecting that earnings will rise 6.4 percent for the period, an improvement from the 2.4 percent growth reported in the third quarter, according to S&P Capital IQ.

A decline in bond prices since the beginning of the year has also slowed. The yield on the 10-year Treasury note, which moves inversely to its price, rose 2 basis points to 1.98 percent. The yield was 1.71 percent at the beginning of the year.

Among other stocks making big moves:

Coca-Cola, the world's largest beverage company, fell $1.05, or 2.7 percent, to $37.56 after reporting fourth-quarter revenue that fell short of analysts' forecasts.

Masco jumped $2.22, or nearly 13 percent, to $20.01 after the home improvement and building products company reported earnings that beat analysts' expectations thanks to strong demand in North America.

Dun & Bradstreet, a provider of credit and business data, fell $6.60, or 7.7 percent, to $78.68 after the company reported fourth-quarter profit that came in below market expectations.