Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Wall Street hits record

While you were sleeping: Wall Street hits record

July 23 (BusinessDesk) - Wall Street rose, pushing the S&P 500 Index to a record high, as investors opted to focus on better-than-expected earnings from companies including Comcast and Chipotle Mexican Grill as well as solid inflation and housing data.

Shares of Chipotle jumped, last up 12.2 percent, after the company posted quarterly profit that surpassed expectations and lifted its sales forecast. Chipotle said it opened 45 new restaurants during the quarter, bringing the total to 1,681.

In late afternoon trading in New York, the Dow Jones Industrial Average gained 0.45 percent, the Standard & Poor’s 500 index added 0.58 percent, while the Nasdaq Composite Index climbed 0.79 percent. Earlier in the session the S&P 500 climbed as a high as an intraday record 1,986.24. The index has gained 8.56 percent so far this year.

"The market is focusing on several good earnings reports and of course economic data," Peter Cardillo, chief market economist at Rockwell Global Capital in New York, told Reuters.

Gains in shares of IBM and those of Goldman Sachs, both up 1.9 percent, led the advance in the Dow.

Shares of Travelers and Coca-Cola bucked the trend, down 3.6 percent and 3.1 percent respectively, after both companies reported second-quarter earnings that failed to meet the mark.

“While I am pleased with our progress to date, we remain focused on the work required to return our business to the level of sustainable growth we and our shareowners expect,” Muhtar Kent, CEO of The Coca-Cola Company said in a statement.

The latest economic data offered proof that inflation is not a concern. The US consumer price index rose 0.3 percent in June, slowing from a 0.4 percent increase the previous month, according to Labor Department data.

“The inflation numbers are supportive of higher stock prices,” Terry Sandven, chief equity strategist at Minneapolis-based US Bank Wealth Management, told Bloomberg News. “It reflects US economic growth that is neither too slow nor too fast.”

Separately, sales of previously owned homes rose in June, climbing 2.6 percent to an annual rate of 5.04 million units, the highest level in eight months.

"We may see a late season summer push in housing activity,” Nela Richardson, chief economist at Redfin, told Reuters. “Inventory is picking up and mortgage rates are hovering around lows for the year, which make things a bit easier for first-time buyers."

In Europe, the Stoxx 600 Index jumped 1.3 percent from the previous close, as did Germany’s DAX. The UK’s FTSE 100 Index increased 1 percent, while France’s CAC 40 rose 1.5 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news