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Overnight Markets: Wall Street gains on retail sales data
by Himanshu Singh on Aug 14, 2013 at 03:07
US stocks rose on Tuesday as data on retail sales reinforced signals the economy is expanding moderately and Apple gained after billionaire investor Carl Icahn revealed a long position in the stock.
The Dow Jones industrial average rose 31 points or 0.2%, to 15,451, the S&P 500 gained five points or 0.28%, to 1,694 and the Nasdaq Composite added 14 points or 0.395, to 3,684.
Economic data yesterday showed retail sales rose 0.2% in July, following a 0.6% gain in June that was larger than previously reported, according to Commerce Department figures.
Apple shares shot up 4.8% to their highest since late January, after activist investor Carl Icahn said via Twitter he has built a "large position" in the stock.
Financial shares also gained, with Bank of America climbing 0.7% and Citigroup rising 1.7%.
Eli Lilly and Co (LLY.N) rose 2.6% after it said its experimental lung cancer drug increased survival in a late-stage trial.
On the negative side, in the housing sector, Ryland Group (RYL.N) was down 5%. PulteGroup Inc. dropped 2.3% as homebuilders slid amid rising interest rates.
US Airways (LCC.N) lost 13.1% after the Justice Department filed an antitrust lawsuit to block its merger with American Airlines parent AMR Corp. Delta Airlines (DAL.N) fell 7.1% and United Continental (UAL.N) dropped 7.5%.
J.C. Penney (JCP.N) shares fell 3.7% after initially rising on news activist investor William Ackman had resigned from its board.
Shares of travel website Orbitz (OWW.N) were down 13.1% after one of its largest investors, PAR Capital Management, said it sold 8.1 million of its 24.6 million-share stake in the company.
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