Stocks closed little changed on the day, giving back their
earlier gains with a sharp drop in June home sales and mixed
corporate earnings offsetting early strength tied to an earnings
beat from Facebook (
) and eight-year low in initial jobless claims. The S&P 500
touched another record high soon after the open, but the Dow Jones
Industrial Average was weighed down by missed sales from component
stock Caterpillar (
) and a downgrade in Boeing (
) at Bank of America that caused the airplane maker to lose another
2%. The Nasdaq closed with a small loss despite a record high in
Facebook and 4% gain in Pandora (
) ahead of its earnings release post-bell.
Like corporate earnings, Thursday's economic data was a mixed
bag, though it was the 8.1% drop in new home sales for June to a
seasonally adjusted annual rate (SAAR) of 406,000 that generated
the most attention. Analysts were predicting home sales to fall
5.7% to 475,000. Also, home sales in May were revised downward to a
SAAR of 442,000 from 504,000 initially.
While China and Europe all reported stronger manufacturing
activity, the purchasing managers index in the U.S. was revised to
56.3 in July from 57.5 initially. This is down from 57.3 in June
and analyst estimates to remain unrevised at 57.5.
But on the plus side, initial jobless claims fell 19,000 to
284,000 for the week ended July 19, an eight year low, and
significantly better than the 8,000 increase the street expected.
While the steep drop was attributed to automaker retooling and
seasonal factors, the headline number grabbed Wall Street's
attention and gave futures a boost into the open.
Finally, the Kansas City Federal Reserve reported an increase in
their manufacturing index for July to 9.0 from 6.0 the month prior,
beating estimates for the index to remain unchanged.
For Friday, durable goods orders are expected to increase 0.5%
in June, partially offsetting a 1.0% drop the month prior.
Here's where the markets stand at the close:
Dow Jones Industrial Index was down 2.8 points (-0.02%) at
S&P 500 was up just under 1 point (+0.05%) at 1,987
Nasdaq Composite Index was down 1.5 point (-0.04%) at 4,472
FTSE 100 was up 0.34%
Nikkei 225 was down 0.29%
Hang Seng Index was up 0.71%
Shanghai China Composite Index was up 1.28%
(+) DWCH (+14.51%) Reported record high revenue
(+) TRLA (+32.43%) Rumored takeover by Zillow (
(+) LOGI (+14.63%) Beat Q1 estimates, boosted operating income
(+) UA (+14.71%) Beat earnings estimates by $0.01, raises
(-) KEM (-14.88%) Reported a wider than expected Q1 results
(-) WMAR (-8.12%) Missed Q2 estimates, sets FY 14 below street
(-) GPRC (-27.78%) DTC intends to suspend all book entry
services for GPRC shares.
(-) ANGI (-19.27%) Reported a Q2 loss of $0.31/share vs
estimates for $0.24 loss, revenue miss