The Standard & Poor's 500 Index climbed to a record, bolstered by gains in banks after better-than-expected UBS earnings, while disappointing earnings for McDonald's and an unexpected drop in US home sales underpinned expectations the Federal Reserve won't be in a rush to taper its bond-buying program.
In late afternoon trading in New York, the Standard & Poor's 500 Index rose 0.11 per cent, while the Nasdaq Composite Index gained 0.15 per cent. Earlier in the session, the S&P 500 touched a record 1,697.61.
US bank shares gained, with the KBW Bank Index last up 0.74 per cent, as Switzerland's UBS posted second-quarter profit that surpassed forecasts and said it reached an agreement in principle with a US regulator to settle claims over US mortgage-backed bond sales.
The Dow Jones Industrial Average edged 0.08 per cent lower, as a 2.7 per cent drop in shares of McDonald's weighed on the index. McDonald's reported quarterly profit and revenue that fell short of forecasts and warned of further headwinds for full-year earnings.
"Based on recent sales trends, our results for the remainder of the year are expected to remain challenged," chief executive Don Thompson said in a statement.