Four-Month High for Wall Street on Thursday, Gap Beats Earnings (GPS, FB)
PUBLISHED ON: Aug 16, 2012
All three major US indices posted their largest gains in two weeks on Thursday after the German Chancellor affirmed her support of the ECB's strategy and several large corporations reported higher earnings. Good news continued from yesterday for Cisco (CSCO), the Gap (GPS) posted a 29% profit and Sears (SHLD) rallied despite posting an expected loss. Facebook (FB) fell to new lows after it's first lockup period came to an end.A manufacturing report showed a larger than expected contraction for August and the number of unemployment claims rose over the past week as was anticipated. Oil futures have risen above $95 a barrel, a three month high.
Word on the Street
- The S&P 500 is on track to hit a four-month closing high despite low trading volume.
- Facebook (FB) shares near their all-time low after rules expire about selling down stakes.
- Sears Holdings Corp. (SHLD) cuts costs to narrow losses but sales still fall.
- New home building drops in July but some positive signals for the market still exist.
- Apple (AAPL) is in talks with cable operators like Time Warner (TWC) about using a TV device.
- Wal-Mart (WMT) rethinks its global strategy and will delay store expansion plans in Mexico.
- The US Department of Justice clears Verizon Wireless (VZ) for $3.9 billion deal with four cable companies.
- Michael Kors (KORS) Blows Away Estimates; Shares Surge Over 20%.