Stocks Advance for the First Time in Four Days
PUBLISHED ON: Aug 7, 2015
From the first minutes of the session, Wall Street ran upward. Investors chose to buy while analyzing the data of jobs created in the private sector. There were fewer jobs than expected in July, with 185,000 new hires. However, the New York Stock Exchange closed Wednesday's session with mixed results. The Dow Jones has fallen into negative territory driven by the sharp decline suffered by Disney's (DIS) shares.
European markets finished higher today with shares in France leading the region.
U.S. Economic Data. The U.S. service sector, which represents more than three quarters of the national economy, grew in July at its fastest pace in a decade. The index rose last month to 60.3 points, which is its highest level since August 2005 and exceeds analyst estimates, they expected to rise to 56.2 points. This helps me to think that the Fed can make a move in the near term.
Disney Disappoints. Walt Disney (DIS) reported its results on Tuesday and traded with sharp corrections in the session on Wednesday, after the company reduced expectations for growth in subscribers of cable television channels. In addition, revenues were below expectations. The media giant reported earnings per share of $1.45, compared with $1.42 expected by analysts at Thomson Reuters. Disney's shares fell 9% on Wednesday.
Brazil's Real Fell to a 12-Year Low. The Brazilian real fell to a minimum of 12 years and Societe Generale (SCGLY) said it will fall to 4 per dollar. Brazil has one of the worst economic recessions in 25 years. The real has depreciated by 23% so far in 2015, the biggest drop among the 31 major currencies tracked by Bloomberg.
Unpaid Debt. Puerto Rico's economy is in the middle of a financial crisis. Thus, the island came on Monday in a situation of default. Although Puerto Rico has spent eight years of recession, this is the first time that the country does not pay the debt. Puerto Rico does not enjoy the protection of chapter nine.
Gainers of the Day. First Solar, Inc. (FSLR) Beat Estimates. The stock was up 16.67% after reporting adjusted second-quarter earnings of $0.52 a share and revenues of $896.2 million, while analysts upped its target price.
Priceline Group Inc. (PCLN) Jumped 5.24%. Stocks surged after the company reported better-than-expected earnings for the second quarter.
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