The stock markets in the United States ended the trading session with mixed results today. The Dow Jones and S&P 500 declined while the NASDAQ and Russell 2000 gained.
Today, economic data showed that American consumers spend less for gasoline to fill their tanks, but they spend more on other products and services. The situation supports the conviction of the Federal Reserve that it would eventually reach its target inflation of 2%.
Nariman Behravesh, chief economist at IHS told Bloomberg, “Oil prices holding down the headline inflation number is good news for consumers. The Fed’s been right on their call on growth and on inflation. This scenario is playing out pretty much as the Fed’s been saying.”
The Department of Commerce reported that the new order for manufactured durable goods increased 2.8% to $6.5 billion on January.
A separate report from the Department of Labor showed that the number of people who applied for unemployment benefits for the week ended February 21 increased by 31,000 to $313,000.
Federal Reserve Chairperson Janet Yellen recently stated that a “high-degree of policy accommodation remains appropriate to foster improvements in labor market condition, and to promote a return of inflation toward 2% over the medium-term.”
Yellen also noted that an “important progress” was already achieved toward the goal of the Federal Reserve for maximum employment. However, she pointed out that too many Americans are still unemployed and the wage growth remain sluggish.
- Dow Jones Industrial Average (DJIA) – 18,214.42 (-0.06%)
- S&P 500- 2,110.74 (-0.15%)
- NASDAQ- 4,987.89 (+0.42%)
- Russell 2000- 1,239.12 (+0.33%)
- EURO STOXX 50 Price EUR- 3,574.94 (+0.94%)
- FTSE 100 Index- 6,949.73 (+0.21%)
- Deutsche Borse AG German Stock Index DAX- 11,327.19 (+1.04%)
- Nikkei 225- 18,785.79 (+1.08%)
- Hong Kong Hang Seng Index- 24,902.06 (+0.50%)
- Shanghai Shenzhen CSI 300 Index- 3,566.30 (+2.52%)
Stocks in Focus
The stock price of Avago Technologies increased nearly 15% to $129.25 per share after reporting earnings that beat the consensus estimate of Wall Street analysts. The company also disclosed its acquisition of Emulex Corporation. The company reported non-GAAP earnings of $2.09 per share compared with the $1.94 per share expected by analysts.
Avago Technologies agreed to acquire Emulex Corporation for $609 million, which is expected to close by the end of this year. The shares of Emulex soared more than 24% to $7.93 per shares.
The shares of LKQ Corporation declined 11% to $24.78 per share after reporting lower-than-expected earnings of $0.26 per diluted share for the fourth quarter. Analysts expected $0.32 per share. The company also announced changes to its executive management today.