The stock markets in the United States gained with the S&P 500 climbed above its average price over the past 100 days. The markets benefited from the strength homebuilders’ equities.
The trading today is light as investors are waiting for further signs from the Federal Reserve regarding its decision whether to delay or raise interest rates by September.
In an interview with Bloomberg, Michael Antonelli, an institutional equity sales trader and managing director ar Robert W. Baird & Co commented, “It’s a quiet Monday, and the market is fairly easy to move around right now. “We’ve reached a stalemate, and we’re not going to break out until we see something from the Fed.”
Bloomberg noted that the U.S. equities have been resilient over the past 6 ½ years of the bull market despite China’s currency devaluation, which negatively impacted the emerging-market currencies and commodities from copper to oil.
Adam Parker, chief U.S. equity strategist at Morgan Stanley, said, “I like the U.S. equity market here. The economy isn’t great, but it’s going to be a little bit better in the second half of the year.”
Investors are currently focusing their attention on U.S. economic data to determine the timing of an interest rate hike by the Federal Reserve.
Today, the Federal Reserve Bank of New York showed that the manufacturing in the state declined to -14.9 in August, the lowest level since April 2009. The contraction was primarily due tp the strong U.S. dollar, which makes American goods more expensive for consumers abroad.
- Dow Jones Industrial Average (DJIA) – 17,545.18 (+0.39%)
- S&P 500- 2,102.44 (+0.52%)
- NASDAQ- 5,091.79 (+0.86%)
- Russell 2000- 1,223.91 (+0.93%)
- EURO STOXX 50 Price EUR- 3,499.90 (+0.20%)
- FTSE 100 Index- 6,550.30 (-0.01%)
- Deutsche Borse AG German Stock Index DAX- 10.940.33 (+0.57%)
- Nikkei 225- 20,620.26 (+0.49%)
- Hong Kong Hang Seng Index- 23,814.65 (-0.74%)
- Shanghai Shenzhen CSI 300 Index- 4,077.87 (+0.21%)
Stocks in Focus
The stock price of Estee Lauder Companies declined nearly 7% to $82.79 per share after reporting lower-than-expected fourth-quarter revenue. The company is among the worst performers in the S&P 500 today. The company posted earnings of $0.40 per share in $2.52 in revenue. Analysts expected Estee Lauder to deliver earnings of $0.34 per share on $2.57 billion in revenue.
Tesla Motors gained almost 5% to $255.17 per share. Morgan Stanley analyst Adam Jonas raised is price target on the stock to $465 per share due to potential rewards from the shift of driving from humans to robots and sharing cars.
The stock value of Zulily surged almost 49% to $18.72 per share. The company signed an agreement to be acquired by Liberty Interactive for $1.75 per share. Liberty Interactive said the acquisition will further strengthen the leadership position of QVC in experiential, discovery driven shopping.