The stock markets in the United States ended the trading session higher driven by data showing that the inflation failed to maintain a foothold, which means there is a big possibility that the Federal Reserve will maintain low-interest rates until 2015.
Investors have been monitoring the inflation data to determine when the Federal Reserve will start increasing the benchmark interest rate. Companies failed to exercise their pricing power due to slowing global demand.
A separate report indicated that the sales of previously owned homes in the United States increased in June, a sign that the housing market continues to improve.
In a telephone interview with Bloomberg, Terry Sandven, chief equity strategist at U.S. Bank Wealth Management commented, “The equity market seems destined to trend higher. We think there is still some modest upside if you continue to see earnings rise. The inflation numbers are supportive of higher stock prices. It reflects U.S. economic growth that is neither too slow nor too fast.”
On the other hand, Lorne Baring, a managing director at B Capital SA in Geneva opined, “It’s a day-by-day encounter for markets, with every speech and communication from politicians giving us the direction for the day.”
• Dow Jones Industrial Average (DJIA)- 17,118.42 (+0.39%)
• S&P 500- 1,983.63 (+0.51%)
• NASDAQ- 4,455.24 (+0.69%)
• Russell 2000- 1,155.47 (+0.77%)
• EURO STOXX 50 Price EUR- 3,189.22 (+1.66%)
• FTSE 100 Index- 6,795.34 (+0.99%)
• Deutsche Borse AG German Stock Index DAX- 9,734.33 (+1.27%)
• Nikkei 225- 15,343.28 (+0.84%)
• Hong Kong Hang Seng Index- 23,782.11 (+1.69%)
• Shanghai Shenzhen CSI 300 Index- 2,192.70 (+1.22%)
Stocks in Focus
The stock price of Chipotle Mexican Grill, Inc. (NYSE:CMG) climbed more than 11% to $659.77 per share after the company reported outstanding financial results for the second-quarter. The restaurant chain operator said its earnings increased 24% to 3.50 per share while its revenue rose 28% to $1.05 billion.
The shares of Harley-Davidson Inc (NYSE:HOG) declined more than 5% to $63.46 per share after the motorcycle company reduced its guidance for the full-year 2014. The company estimated that it would be able to deliver as much as 275,000 new motorcycles compared with its previous estimate of as much as 284,000 units.
Herbalife Ltd. (NYSE:HLF) surged more than 25% to $67.91 per share after the company released the findings of the research and analysis conducted by Dr. Walter H. A. Vandaele of Navigant Economics LLC. His report indicated that Herbalife Ltd. (NYSE:HLF) is consistent with the “socially beneficial MLM model. Dr. Vandaele is an economics expert, and he previously served as Assistant Director to the Director of Consumer Protection of the U.S. Federal Trade Commission (FTC).