Stocks: Dow hits new closing high, Nasdaq slips

Adam Shell | USA TODAY

NEW YORK -- The U.S. stock market continued its record-setting pace, with the Dow Jones industrial average setting a new high at the close.

The Dow ended up 0.8%, rising 129 points to close at 15,746.88 -- well above its Oct. 29 record close of 15,680.35. In earlier trading, the S&P 500 also topped its previous closing peak of 1771.95, gaining 0.6%, before settling back a bit. It ended up 0.4%.

The Nasdaq composite, too, was up 0.4% early and at a fresh 13-year high. But it sank as the day wore on and ended down 0.2%.

U.S. markets got a boost from more positive economic data out of Europe, where the most recent reading on German factory orders came in stronger than expected and the U.K. posted better-than-expected manufacturing data.

The stock market has been bolstered recently by a solid third-quarter earnings season. Nearly seven out of 10 (68.3%) of the 423 companies in the S&P 500 that have reported earnings have beat expectations, above the long-term average of 63%, according to Thomson Reuters I/B/E/S. Year-over-year earnings growth is tracking at a 5.2% pace, up from 4.5% on Oct. 1.

Market sentiment is also high ahead of tomorrow's highly anticipated initial public offering of micro-blogging site Twitter. The IPO market has been white-hot in recent weeks. Twitter, which upped its proposed price range to $23-$25 share from $17-$20, is expected to price its IPO later today.

Investors were reacting to mixed profit reports in early trading. Shares of electric car maker and high-flyer Tesla Motors fell 14.5% to $151.16 after beating quarterly earnings estimates but reporting fewer deliveries of its popular Model S than analysts expected. Teen apparel maker Abercrombie & Fitch saw its shares tumble 8% to $50.02 after a sharp drop in revenues due to weak sales in the U.S. and Europe.

Shares of media giant Time Warner slipped 0.8% to $67.69, after topping analysts' earnings-per-share estimates by 12 cents.

The major indexes were sluggish Tuesday. The S&P 500 index dropped 0.3% to 1,762.97. The Dow fell 0.1% to 15,618.22. The Nasdaq composite finished flat at 3,939.86.

Some analysts say investors remain cautious ahead of possible market moving data and policy meetings this week.

They include the European Central Bank meeting on Thursday where it may foreshadow a further reduction to record low interest rates and the advance estimate of U.S. third quarter economic growth due the same day. U.S. October jobs figures are due on Friday.

Major benchmarks in Asia and Europe rose on Wednesday.

Contributing: Associated Press