Stocks climbed to record intra-day highs as economic data, corporate profits, and dealmaking offset foreign political and economic concerns . Warren Buffett invests $3 billion in Burger King-Tim Hortons tie-up. Conway G. Gittens reports.
New records on Wall Street as a U.S. economy cruising through the summer and corporations plunking down billions of dollars to buy one other offset political tensions abroad and signs of economic weakness in the euro zone. Rising corporate profits are another reason behind the buying. With new records come old fears that this party is coming to an end, but Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds says the market has room to run further. SOUNDBITE: BRIAN JACOBSEN, CHIEF PORTFOLIO STRATEGIST, WELLS FARGO ADVANTAGE FUNDS (ENGLISH) SAYING: "You might have pockets of overvaluation, you have pockets of undervaluation but that's the sign of a normal market and that's really what the last five years have been all about -is this gradual return to normal. So I would actually say that yes it has been a fun ride up to this point but you shouldn't necessarily expect things to roll over because now we are just back to where we should be." The Dow closed below its intra-day record. The S&P 500 settled above 2,000 for the first time on record. The Nasdaq gained 13 points. An update on the Burger King/Tim Horton's deal. We now know the price tag is just over $11-1/2 billion U.S. And there's something else, or someone else, thrown into the mix. Warren Buffett's Berkshire Hathaway putting up $3 billion of preferred equity to finance the deal. Both sides are trying to quiet criticism about taxes or patriotism. Shares of BK taking away some of the gain given when the two confirmed talks earlier in the week, Hortons adding to the gain. By the way, shares of larger rivals McDonald's and Wendy's reversed gains. Quarterly revenues at Best Buy below analyst estimates for the third quarter in a row. Shares of the biggest consumer electronics chain down nearly seven percent on the day. Staying with shoppers, consumer confidence - surging to an almost seven-year high in August, fueled by optimism about the jobs market. In other economic figures: orders for long-lasting items known as durable goods showing a record gain last month thanks to hefty aircraft orders. Home prices continue to rise in the 12 months through June, but price gains were the weakest since late 2012, according to the closely-watched S&P/Case-Shiller Index. In European action, blue chips enjoy the biggest two-day rally in over a year as investors look forward to new stimulus from the European Central Bank.