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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news