Stocks closed higher on Monday as another batch of earnings reports flowed through the news cycle, and data from used-home sales came in shy of expectations.
The Standard & Poor’s 500 began the week on the momentum of the previous one, finishing the day on its third consecutive record high close at 1,695.53 points, a gain of 0.2 percent. The NASDAQ added 0.36 percent to end the day at 3,600.39 points, while the Dow Jones Industrial Average inched into positive territory on an advance of 0.01 percent to 15,545.55 points.
Housing data for the day indicated that purchases of previously owned homes fell over 1 percent to 5.08 million, below analyst estimates of 5.26 million at an annualized rate, and further reassuring investors about the Federal Reserve’s continued role in supporting markets through fiscal policy. The yield on the 10-year treasury bond dropped 0.12 percent to $2.48 after starting off last week above $2.50.
Meanwhile, stocks were pushed around by some key earnings reports. The Dow was severely hampered by the performance of McDonald’s (MCD) , whose shares dropped 2.7 percent to $97.58 after releasing a disappointing earnings report that showed the company missing on both top and bottom lines for the second quarter, and forecasting weaker sales for the rest of the fiscal year. Microsoft (MSFT) , Hewlett-Packard (HPQ) and Bank of America (BAC) gave the Dow support on the upside, keeping it in the black. Shares for Newmont Mining Corp. (NEM) led the S&P 500 on a gain of 5.8 percent to $30.35, as the company benefitted from a 3.15 percent surge in the price of gold to $1,333.6 per ounce. Tech stocks were also among the S&P’s best performers, with healthy advances for SAIC Inc. (SAI) , telecom firm Windstream (WIN) , Emerson Electric Co. (EMR) , and Garmin Limited (GRMN) .
Tech shares did well on the NASDAQ also, with a 30 percent gain for Himax Technologies (HIMX) , who ended the day at $6.74. Data storage manufacturer Brocade Communications (BRCD) ended the day up over 4 percent.
