The stock markets in the United States gained driven by a report showing a significant increase in durable goods orders. A separate report also indicated an increase in consumer confidence this month.
The S&P 500 reached 2,000.02 points while the Dow Jones Industrial Average (DJIA) ended the trading session at 17,106.70 points today. The NASDAQ closed at 4,570.64 points.
In a telephone interview with Bloomberg, Richard Sichel, the chief investment officer at Philadelphia Trust Co. said, “There’s not a lot of direction in the market so far. The 2,000 number got a lot of attention, but let’s get back to basics and see how the economy is doing.”
On the other hand, Manish Singh of Crossbreed Capital in London commented, “I am still bullish on the U.S. market, but I do expect the S&P 500 to consolidate and slip back to 1,950-80 range as it’s due for a rest once it climbs to 2,000. Any dip will be a shallow one. The central-bank and data narrative is still supportive of risk.”
The Department of Commerce reported that the orders for U.S. durable goods increased 22.6% on a seasonally adjusted basis in July. The increase was due to a 318% increase in orders for civilian aircraft.
Separately, the Conference Board’s consumer index climbed to 92.4% in August compared with a revised 90.3% in the previous month. The consumer confidence rose the highest since October 2007.
- Dow Jones Industrial Average (DJIA)- 17,106.70 (+0.17%)
- S&P 500- 2,000.02 (+0.11%)
- NASDAQ- 4,570.64 (+0.29%)
- Russell 2000- 1,175.07 (+0.85%)
- EURO STOXX 50 Price EUR- 3,197.54 (+1.01%)
- FTSE 100 Index- 6,822.76 (+0.70%)
- Deutsche Borse AG German Stock Index DAX- 9,588.15 (+0.82%)
- Nikkei 225- 15,521.22 (-0.59%)
- Hong Kong Hang Seng Index- 25.074.50 (-0.37%)
- Shanghai Shenzhen CSI 300 Index- 2,324.09 (-0.80%)
Stocks in Focus
The stock price of Amazon.com, Inc. (NASDAQ:AMZN) gained more than 2% to $342.01 per share after the e-commerce giant agreed to acquire Twitch for $970 million. Twitch is a video game streaming service. Kevin O’Leary expressed optimism regarding the acquisition and the future of Twitch citing the reason that Amazon.com knows how to monetize its resources.
The shares of Best Buy Co Inc (NYSE:BBY) declined almost 7% to $29.78 per share after the company reported disappointing second-quarter financial results. The world’s largest electronics retailer said its revenue declined 4% to $8.9 billion. Its net income dropped 45% to $146 million or $0.42 in earnings per share.
Tim Hortons Inc. (USA) (NYSE:THI) (TSE:THI) surged more than 8% to $81.05 per share in New York after Burger King Worldwide Inc (NYSE:BKW) said it would acquire the Canadian company for $11 billion. The deal would create the third-largest fast-food chain worldwide. Yesterday, Tim Hortons gained 19% while Burger King rose 20%. Today, Burger King fell more than 4% to $31 per share.