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U.S. stocks rally to start earnings week

English.news.cn   2014-07-15 05:49:38

NEW YORK, July 14 (Xinhua) -- U.S. stocks closed higher Monday to kick off a busy week for corporate earnings, lifting the Dow Jones Industrial Average to uncharted terrain in intraday trading, as Citigroup reported better-than-expected second-quarter results.

The Dow jumped 111.61 points, or 0.66 percent, to 17, 055.42. The S&P 500 rose 9.53 points, or 0.48 percent, to 1,977.10. The Nasdaq Composite Index added 24.93 points, or 0.56 percent, to 4, 440.42.

The Dow touched an all-time intraday high of 17,088.43 points after the blue-chip index settled above the 17,000 mark for the first time on July 3 on encouraging improvement in the U.S. employment market.

Citigroup reported second-quarter net income of 181 million U.S. dollars, or 3 cents per diluted share, sharply down from the net income of 4.2 billion dollars, or 1.34 dollars per share, a year ago. The results reflected the impact of a 3.8-billion-dollar charge to settle claims related to the bank's residential mortgage- backed securities and collateralized debt obligations.

On an adjusted basis, however, Citigroup reported earnings of 1. 24 dollars per diluted share, beating analysts' expectations. Its revenue in the second quarter also topped market forecast. Citigroup shares rose 3.02 percent to 48.42 dollars apiece.

The Citigroup results came after Wells Fargo, the largest U.S. mortgage lender, set a slightly positive tone Friday for closely- watched banking earnings in the second quarter. The bank giant delivered its second-quarter earnings that were in line with market consensus and revenues which beat analyst forecast.

Other major U.S. banks are also due to report quarterly results later this week, with J.P. Morgan Chase & Co. and Goldman Sachs Group's results scheduled for Tuesday, Bank of America's report on Wednesday and Morgan Stanley's results on Thursday.

Jubilant corporate merger and acquisition activities also contributed to the rally on Wall Street which had retreated last week from a record run as technique selling weighed on the market.

U.S. drug company AbbVie is reportedly close to a deal in which the Chicago-based firm would buy Dublin-based pharmaceutical maker Shire for over 53 billion dollars.

With no major U.S. economic data out in the day, investors are looking ahead to Federal Reserve Chair Janet Yellen's semi-annual testimony on monetary policy to Congress on Tuesday and Wednesday.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, dipped 2.15 percent to end at 11.82 on Monday, well below its long-term average of 20.

In other markets, the dollar fell slightly against most major currencies Monday as investors awaited Yellen's testimony.

In late New York trading, the euro rose to 1.3618 dollars from 1.3609 dollars in the previous session. The dollar bought 101.58 Japanese yen, higher than 101.33 yen of the previous session.

Crude prices steadied as the market expected more crude supplies from Libya. Light, sweet crude for August delivery moved up 8 cents to settle at 100.91 dollars a barrel on the New York Mercantile Exchange (NYMEX).

Gold futures on the COMEX division of the NYMEX posted the biggest daily drop in 2014 on rising stocks. The most active gold contract for August delivery dropped 30.7 dollars, or 2.3 percent, to settle at 1,306.7 dollars per ounce.

Editor: Mu Xuequan
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