Wall Street squeezed out slim gains today to close higher for
the third consecutive day despite unfriendly data on housing and
inflation plus continued tensions in the Middle East. After
digesting a big jump in consumer prices and weaker than expected
housing starts and permits, Wall Street climbed out of the red amid
positioning before tomorrow's conclusion to the Federal Open Market
Committee meeting. As the U.S. economy continues to show more
consistent growth, the FOMC is expected to retain its bond-buying
tapering schedule by shaving another $10 billion off its
Quantitative Easing program. The market also expects policy makers
to remain optimistic on the outlook for both inflation and
Stocks began the day under water following release of a report
that showed a 0.4% increase in consumer prices, twice what the
Street was expecting. Excluding food and fuel prices, CPI rose
0.3%, beating estimates for a modest 0.2% increase.
Also reported Tuesday, May housing starts tumbled 6.5% to a
seasonally adjusted annual pace of 1 million, more than the
expected decline to 1.04 million from 1.07 million in April.
Permits were also weaker than expected, falling to 991,000 from a
downwardly revised 1.06 million in April.
In corporate news, Valeant (VRX, VRX.TO) is taking its $53
billion offer for Allergan (
) directly to shareholders and soliciting proxies in an attempt to
replace the current Allergan board. Shares of both VRX and AGN
closed more than 1% higher. Retail equity brokers got a shot in the
arm from Senate hearings taking a hard look at the proliferation of
"high-frequency trading," which allows certain firms to capitalize
on their ability to execute faster trades. Shares of Ameritrade (
), Schwab (
) and E*Trade (
) closed with significant gains.
Here's where the markets stand at the close:
Dow Jones Industrial Index was up 27 points (+0.2%) at
S&P 500 was up 4 points (+0.2%) at 1,941
Nasdaq Composite Index was up 16 points (+0.4%) at 4,337
FTSE 100 was up 0.18%
Nikkei 225 was up 0.29%
Hang Seng Index was down 0.42%
Shanghai China Composite Index was down 0.92%
(+) BIOL Oracle Partners prevails in board, legal fight, forcing
(+) GWPH Preliminary data from a trial into its Epidiolex
treatment for drug-resistant epilepsy showed positive results.
(+) GIGA $2.4 mln order from U.S. Navy for Model 8003 Precision
(+) BTUI Raises Q2 revenue guidance
(+) ANFI Reported better than expected Q4 earnings and
(-) PGEM Goldman downgraded the stock to sell from neutral
(-) STRM Risks Nasdaq-delisting after failing to file 10-Q
quarterly report on time
(-) ACOR, Planning $300 mln public offering of convertible
senior notes due 2021.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.