The stock markets in the United States gained today as investors focused their attention of economic data, which are better than forecast. The Federal Reserve is also watching the country’s economic growth to determine the timing of the interest rate hike.
In an interview with Bloomberg, Paul Zemsky of Voya Investment Management commented, “Economic data has been a bit better than expected, and people are not worrying as much about China. Those are helping, and the fact that the yuan has stabilized and hasn’t come crashing down has given a bid under the market.”
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Today, the Federal Reserve reported that the industrial production increases 0.6%, and the manufacturing output expanded 0.8% in July. According to the central bank, the output of motor vehicles and parts surged 10.6% last month.
On the other hand, the University of Michigan’s preliminary index of consumer confidence dropped from 93.1% to 92.9% last month.
Richard Curtin, director of the Michigan Survey of Consumers told Bloomberg, “Now is the time to monitor more carefully consumer sentiment in case we do see a fallout from the international problems, but I don’t expect it.” He added that lower oil prices are “starting to have an impact” on consumer’s spending decisions.
- Dow Jones Industrial Average (DJIA) – 17,477.40 (+0.40%)
- S&P 500- 2,091.54 (+0.39%)
- NASDAQ- 5,048.24 (+0.29%)
- Russell 2000- 1,211.86 (+0.59%)
- EURO STOXX 50 Price EUR- 3,491.03 (-0.71%)
- FTSE 100 Index- 6,550.74 (-0.27%)
- Deutsche Borse AG German Stock Index DAX- 10.956.47 (-0.61%)
- Nikkei 225- 20,519.45 (-0.37%)
- Hong Kong Hang Seng Index- 23,991.03 (-0.12%)
- Shanghai Shenzhen CSI 300 Index- 4,073.54 (-0.58%)
Stocks in Focus
El Pollo Loco Holdings dropped more than 20% to $14.56 per share after reporting second-quarter revenue that missed expectations. The chicken restaurant chain posted adjusted earnings of $0.19 per share on $89.5 million revenue. Wall Street analysts expected the company deliver earnings of $0.18 per share on $93 million revenue.
The stock price of Sysco climbed more than 7% to $41.38 per share. Nelson Peltz Trian Fund Management disclosed a 7.08% stake in the company. The activist hedge fund said the stock is undervalued and represented an attractive investment opportunity.
King Digital Entertainment plummeted 11% to $13.52 per share. The company reported that its revenue declined 17.5% to $490 million. Its non-GAAP earnings also declined 17% to $0.49 per share in the second quarter.