* S&P 500 coming off three days of gains, record close
* Investors looking for catalysts after rally
* Fossil rallies after results, Emerson cuts outlook
* Indexes up: Dow 0.2 pct, S&P 0.2 pct, Nasdaq 0.1 pct
By Ryan Vlastelica
NEW YORK, May 7 (Reuters) - U.S. stocks edged higher on
Tuesday as the positive tone in markets continued but investors
found little reason to push shares decisively higher after the
S&P 500 hit another record close.
The S&P has risen for three straight days, extending its
rise for the year to more than 13 percent, eclipsing all the
gains made in 2012.
The gains so far have come on strong corporate results and
accommodative policies from the Federal Reserve, two factors
that may now be priced into markets. Last week's jobs report was
unexpectedly strong, helping to fuel market gains.
Equities this year have gone without a sustained pullback as
investors use any market decline to add to positions. Many
analysts expect markets to trend higher, but some see a
near-term pullback, citing a lack of positive catalysts and
mixed economic data.
"The payroll report indicated that things are better than we
were thinking in terms of growth, so until the market finds
proof otherwise against the recovery, stocks will continue to
move generally higher," said Andres Garcia-Amaya, global market
strategist with J.P. Morgan Funds in New York.
"There are still things to be concerned about, but stocks
remain cheap and the biggest risk is to try and time a
correction rather than follow the trend."
The Dow Jones industrial average was up 22.12 points,
or 0.15 percent, at 14,991.01. The Standard & Poor's 500 Index
was up 3.01 points, or 0.19 percent, at 1,620.51. The
Nasdaq Composite Index was up 3.37 points, or 0.10
percent, at 3,396.34.
In the latest earnings, both Fossil Inc and DirecTV
reported earnings that surged past expectations. Fossil
jumped 9.5 percent to $107.49 as the S&P 500's top percentage
gainer, followed by DirecTV, up 5.5 percent to $61.17.
On the downside, Emerson Electric Co reported
second-quarter sales that were slightly below expectations and
cut its full-year outlook. Shares fell 1.5 percent to $56.43.
Earnings have largely been positive, with 68.5 percent of
S&P 500 companies surpassing estimates so far. At the same time,
revenues have been disappointing and second-quarter estimates
have fallen as outlooks remain more negative than positive.
Recent gains have come on strength in technology and banking
share, two groups that are closely tied to the pace of growth.
"If this rotation into cyclical stocks from defensive ones
continues, that will be a very healthy sign for us," said Art
Hogan, managing director at Lazard Capital Markets in New York.
Overseas, European shares rose 0.4 percent on
positive earnings and expectations that central banks would
continue to stimulate the economy.