The stock markets in the United States rebounded and halted its longest losing streak amid better-than-expected corporate earnings today. The Dow Jones gained 1.09% and the S&P 500 climbed 1.24%. The NASDAQ and the Russell 2000 rose 0.98% and 0.76%, respectively.
The U.S. markets plummeted yesterday due to the sell-off of Chinese equities due to investors concerns regarding China’s economy. The Shanghai Shenzhen CSI 300 Index also declined 8.55% to 3,819.09 points yesterday. The index is still down by 0.20% to 3,811.43 points.
The China Securities Regulatory Commissions issued a statement that it would continue its effort to stabilize the market and to prevent systemic risks.
Commenting on the market trends, Terry Morris, a senior equity manager at National Penn Investors Trust told Bloomberg, “China slowed the big selloff it saw yesterday, and that’s lifting the U.S. market. Reported earnings have been okay so far, and we’ll get a lot more reports to digest as the week goes along.”
The price of houses in 20 cities across the United States increased 4.9% for the year ended May, according to the S&P/Case=Schiller index of property values.
4Cast senior economist David Sloan said the” housing market is growing quite healthily, but it is not overheating.”
On the other hand, the U.S. consumer confidence declined in July. The Conference Board’s index dropped to 90.9% from 99.8% last month.
In a statement, Lynn Francom director of economic indicators director at the Conference Board said, “A less optimistic outlook for the labor market, and perhaps the uncertainty and volatility in financial markets prompted by the situation in Greece and China, appears to have shaken consumers’ confidence.”
- Dow Jones Industrial Average (DJIA) – 17,630.27 (+1.09%)
- S&P 500- 2,093.25 (+1.24%)
- NASDAQ- 5,089.21 (+0.968%)
- Russell 2000- 1,223.82 (+0.76%)
- EURO STOXX 50 Price EUR- 3,554.11 (+1.17%)
- FTSE 100 Index- 6,555.28 (+0.77%)
- Deutsche Borse AG German Stock Index DAX- 11,173.91 (+1.06%)
- Nikkei 225- 20,328.89 (-0.10%)
- Hong Kong Hang Seng Index- 24,503.94 (+0.62%)
- Shanghai Shenzhen CSI 300 Index- 3,811.43 (-0.20%)
Stocks in Focus
Loxo Oncology gained more than 26% to $20.91 per share. Analysts at Stifel Nicolaus raised their price target for the company to $24 per share with a Buy rating.
The stock price of Masco surged more than 10% to $25.63 per share. The company reported that its adjusted earnings increased 36% to $0.38 per share for the second quarter. Wall Street analysts expected Masco to deliver $0.36 in earnings per share.
Twitter shares closed $36.56 per share, up by 5.36%. The shares of the microblogging company climbed further during the extended trading after reporting second-quarter earnings that beat Street estimates.
Twitter posted earnings of $0.07 per share on $502 million in revenue. Analysts expected the company to report $0.04 in earnings per share on $481 million in revenue. Twitter’s stock is trading around $38.89 per share, up by almost 6% after-hours.