Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Overnight Markets: US stocks extend rally on Home Depot earnings

Overnight Markets: US stocks extend rally on Home Depot earnings

Wall Street closed higher for the second consecutive session on Tuesday, as strong housing data and robust earnings from Home Depot overshadowed lingering concerns about the conflict in Ukraine.

The Dow Jones industrial average gained 81 points, or 0.48%, to close at 16,920. The S&P 500 gained 10 points, or 0.50%, to end at 1,982. The Nasdaq Composite added 19 points, or 0.43%, to finish at 4,528, its highest close since 31 March, 2000.

Encouraging data on the economic front gave the market another boost. Housing starts posted their strongest rebound in eight months in July, topping expectations and adding another data point to suggest optimism is returning among homebuilders.

That helped investors gain confidence in the face of continuing tensions along the Ukraine-Russia border, which have pressured markets for weeks.

Apple Inc was among the most heavily traded names of the day after the stock hit $100 for the first time since its seven-for-one split in June. The stock climbed 1.4% to a new split-adjusted closing high of $100.53.

Consumer discretionary shares led advances in the S&P 500 as a string of positive earnings reports lifted the stocks of major retailers.

Home Depot Inc rose 5.6%, its largest daily percentage gain since May 2009. The rally occurred after the world's largest home improvement retailer beat Wall Street's earnings expectations. Shares of Lowe’s Cos, a Home Depot rival, rose 2.1%.

Quarterly results sent shares of discount retailer TJX Cos Inc up 8.7% and pushed Dick's Sporting Goods shares up 1.6%.

On the negative side, shares of Elizabeth Arden Inc plunged 23.3% after the company reported the biggest quarterly loss in its history.

In Asia, shares were little changed on Wednesday in morning trade after data showed the US economy is strengthening and inflation is running below the Federal Reserve’s target.

The MSCI Asia Pacific Index fell less than 0.1% to 149 as of 9:50 a.m. in Hong Kong. Japan’s Topix index climbed 0.1% after exports rose more than estimated in July while imports unexpectedly increased.

Hong Kong’s Hang Seng Index slid 0.2%, retreating from the highest close since May 2008. Singapore’s Straits Times Index gained 0.2% and Taiwan’s Taiex Index added 0.3%. South Korea’s Kospi index slipped 0.1%. New Zealand’s NZX 50 Index gained 0.5%, while Australia’s S&P/ASX 200 Index dropped 0.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter