NEW YORK (AP) - The Standard & Poor's 500 index is flirting with a new milestone: 1,900.
The index briefly climbed above that level Tuesday before dropping back to close just below it. It set an all-time closing high by a fraction of point.
Stocks have gained as most investors remain optimistic that the economy will start to accelerate this year following a cold winter that stymied growth. First-quarter corporate earnings came in better than expected, giving stocks a lift.
Whether the S&P 500 climbs beyond the 1,900 level or falls back now depends on how the economy develops, said John Canally, chief market strategist for LPL Financial. If growth falters, stocks will likely slide, he said.
"But if the economy can deliver ... and the global economy can accelerate, we'll look back at 1,900 and say "Yes that was just a stop on the way to 2,000,'" he said.
On Tuesday, the Standard & Poor's 500 index rose 0.8 points, or less than 0.1 percent, to 1,897.45, after climbing as high as 1,902 in early trading. The index first closed above 1,800 on Nov. 22.
The Dow Jones industrial average rose 19.97 points, or 0.1 percent, to 16,715.44. The Nasdaq composite was the laggard of the three. The technology-focused index fell 13.7 points, or 0.3 percent, to 4,130.17.
Nearly all companies in the S&P 500 have reported results, and earnings are forecast to grow by 3.3 percent when final figures are calculated, according to S&P Capital IQ data. Three weeks ago, analysts were expecting earnings to fall 1.1 percent.
Another encouraging sign was that company revenue growth accelerated in the quarter to 3.2 percent, from 1.6 percent in the fourth quarter.