Stock Market News For August 24, 2016
Zacks Investment Research | Aug 23, 2016 09:56PM ET
Upbeat new-home sales data and better-than-expected European private sector data led the benchmarks to close in the green on Tuesday. New home sales reached at its highest settlement in almost nine years, which in turn boosted investor sentiment. Moreover, economic data indicated that the Eurozone’s economic recovery has improved this month, reducing concerns over the impact of “Brexit”.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) increased 0.1%, to close at 18,547.30. The S&P 500 rose 0.2% to close at 2,186.90. The tech-laden Nasdaq Composite Index closed at 5,260.08 gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) increased 0.9% to settle at 12.38. A total of around 5.56 billion shares were traded on Tuesday, lower than the last 20-session average of 6.33 billion. Advancers outpaced declining stocks on the NYSE. For 65% stocks that advanced, 32% declined.
What Boosted the Benchmarks?
New home sales jumped 12.4% to a seasonally adjusted annual rate of 654,000 in July, reaching its highest settlement since October 2007. July’s reading beat the consensus estimate of 575,000 and also soared 31.3% year-over-year.
Gains in the housing market led the PHLX Housing Sector (HGX) to increase more than 1.8%. Some of its holdings including Meritage Homes Corporation ( KBH ) rose 3.4%, 4.6%, 3% and 4.9%, respectively.
Also, shares of Toll Brothers Inc. ( Toll Brothers Q3 Earnings Lag, Stock Up on Sales Beat ).
Further, IHS Markit Ltd. (MRKT ) reported that Europe’s composite Purchasing Managers Index increased to 53.3 in August from 53.2 in July. Also, manufacturing and service PMI came in at 51.8 and 52.8, respectively. A reading of more than 50 indicates expansion in economic activity.
Additionally, the Materials Select Sector SPDR (XLB) increased 0.9% and was the best performer among S&P 500 sectors. Key components from materials sector including CF Industries Holdings (NYSE:CF), Inc. (FCX ) rose 4.8%, 1.7%, 2.5% and 1.3%, respectively.
Separately, Best Buy Co (NYSE:BBY)., Inc’s ( Best Buy Tops Q2 Earnings & Revenues, Stock Gains ).
Stocks that Made Headlines
Intuit Inc. (Read More)
Medical technology giant Medtronic plc (Read More )
Pfizer Inc. (Read More )
In line with its persistent endeavors to enhance pharmacy and clinical services, Rite Aid Corporation’s ( Read More )
Netflix, Inc. (Read More )
Jacobs Engineering Group Inc. (Read More )
Controversies concerning massive hikes in drug prices have surfaced yet again and this time, generic drug maker, Mylan N.V. (Zacks Investment Research
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