Stocks close higher, near record territory

U.S. stocks are closing higher, keeping major indexes at record levels.

Retailers posted solid gains Monday ahead of the holiday shopping season. Coach rose 2.6 percent after analysts at Stifel said the company was on the right track to strengthen its brand.

Big phone company stocks fell. Verizon lost 1.4 percent and AT&T declined 1.6 percent.

The Standard & Poor's 500 index gained six points, or 0.3 percent, to 2,069.

The Dow Jones industrial average edged up seven points, less than 0.1 percent, to 17,817. The Nasdaq composite rose 41 points, or 0.9 percent, to 4,754.

The Dow and S&P 500 are at record highs.

Trading volume was light ahead of the Thanksgiving holiday Thursday.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.30 percent.

CONSUMER GOODS: The so-called consumer discretionary sector, which includes retailers such as Coach, Urban Outfitters and Gap, led gains for the stock market before the holiday season. Coach rose 98 cents, or 2.6 percent, to $37.41 as analysts at Stifel reiterated their belief that the company was "doing the right things to reinvigorate the brand." The analysts believe that the stock's price could climb as high as $47.

THE BACKDROP: The S&P 500 has gained 11 percent since bottoming out in a slump that stretched from mid-September to mid-October. The rally has been driven by a belief that central bank actions in Europe, China and Japan will help invigorate global economic growth.

On Friday, China's central bank lowered a key interest rate and European Central Bank President Mario Draghi said he was willing to step up the bank's efforts to stimulate the region's struggling economy.

THE QUOTE: "You clearly have momentum favoring stocks right now," said Russ Koesterich, chief investment strategist at BlackRock. "You have a persistence of low interest rates and, if anything, long-term rates continue to grind lower in most parts of the world."

TELECOM'S TOUGH YEAR: Verizon slumped 77 cents, or 1.5 percent, to $49.44. Analysts at Citigroup cut their outlook on the stock to "neutral," predicting that the telecom company's earnings will come in lower than most Wall Street analysts expect. Revenue growth at the big telecommunication companies will be crimped by more intense competition next year and higher prices for wireless spectrum. AT&T also fell, dropping 61 cents, or 1.7 percent, to $34.66.

OPEC: Traders are also watching a meeting in Vienna on Thursday of the Organization of Petroleum Exporting Countries for a possible agreement to cut production to shore up prices. The price of crude has tumbled 25 percent since the summer as producers kept output stable while demand in Europe and other markets weakened.

ENERGY: Benchmark U.S. crude was down 15 cents to $76.36 per barrel on the New York Mercantile Exchange.