Investing.com - Better-than-expected earnings at Citigroup
coupled with an uptick in mergers and acquisitions sent U.S. stock
prices rising on Monday
At the close of U.S. trading, the Dow 30 rose 0.66%, the S&P
500 index rose 0.48%, while the NASDAQ Composite index rose
The Volatility S&P 500 index, which measures the outlook for
market volatility, was down 3.31% at 11.68.
Citigroup Inc (NYSE:C) reported adjusted net income at $1.24 a
share, beating analyst expectations of $1.05 a share, which
bolstered financial stocks especially.
Citigroup also said it agreed to pay $7 billion to settle
charges that it sold bad mortgages during the financial crisis, a
move that will prevent a Justice Department civil suit, which also
drew applause on Wall Street as did the bank's better-than-expected
trading revenue and falling credit costs.
Last week, U.S. financial institution Wells Fargo reported that
profits rose by 3% to $5.42 billion in the second quarter thanks to
an improving housing sector and fewer bad loans, which also pleased
Elsewhere, Aecom Technology said it would pay about $4 billion
to purchase construction-management company URS, while drugmaker
Shire said it was considering a takeover offer from AbbVie, a $53
More earnings are due this week, and Citigroup's report boosted
expectations for more pleasant surprises.
Leading Dow Jones Industrial Average performers included Visa
Inc (NYSE:V), up 1.90%, UnitedHealth Group Incorporated (NYSE:UNH),
up 1.70%, and Goldman Sachs Group Inc (NYSE:GS), up 1.37%.
The Dow Jones Industrial Average's worst performers included
Merck & Company Inc (NYSE:MRK), down 0.45%, Wal-Mart Stores Inc
(NYSE:WMT), down 0.34%, and Cisco Systems Inc (NASDAQ:CSCO), down
European indices, meanwhile, ended the day higher.
After the close of European trade, the DJ Euro Stoxx 50 rose
0.96%, France's CAC 40 rose 0.78%, while Germany's DAX rose 1.21%.
Meanwhile, in the U.K. the FTSE 100 rose 0.84%.
On Tuesday, stocks should move on Federal Reserve Chair Janet
Yellen's testimony before Congress.
Elsewhere, the U.S. is to release data on retail sales, the
government measure of consumer spending, which accounts for the
majority of overall economic activity. The U.S. is also to release
data on import prices, business inventories and manufacturing
activity in New York state.
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