S&P 500 Index Nears Record, BofA Earnings Lift Sentiment

Nichole Harper
15 Jan, 2014
New York City

Market indexes on Wall Street advanced after Bank of America reported better than expected. New York region manufacturing index showed a stronger than expected growth. World Bank lifted its global economic growth estimate.

[R]2:00 PM New York – Market indexes on Wall Street advanced after Bank of America reported better than expected. New York region manufacturing index showed a stronger than expected growth. World Bank lifted its global economic growth estimate.[/R]

Stocks on Wall Street gained on after strong bank results and World Bank lifted economic growth outlook.

S&P 500 index increased 0.4% to 1,846.76 and the Nasdaq Composite Index added 26.59 or 0.6% to 4,209.61.

World Bank lifted its global growth estimated in the current year to 3.2% from its previous estimate of 3%. The multilateral agency estimated economic growth of 2.4% in 2013.

The bank also said for the first time in five years high income economies are showing early signs of sustained economic expansion.

The Federal Reserve Bank of New York said its general economic index soared to 12.5. The index covers manufacturing activities in New York, New Jersey and southern Connecticut.

European Markets

In London trading, FTSE 100 index jumped 0.7% or 46.52 to 6,813 and in Frankfurt the DAX index climbed 1.5% or 145.14 to 9,686.

In Paris, CAC 40 index jumped 0.8% or 34.34 to 4,309.

U.S. Stocks in Review

Aeropostale Inc ((ARO)) increased 2.3% to $7.91 after the teen apparel retailer has been exploring its options including sale to private equity firms. Two independent sources in New York confirmed the discussions.

Apple Inc ((AAPL)) increased 2% to $559.62 after China Mobile Ltd said it has received one million unit orders for Apple brand mobile phones ahead of its launch at the end of this week.

General Motors ((GM)) declined 1.6% to $39.35 after the automaker estimate a “modest” increase in profit in 2014 and plans to introduce 15 new or improved models in the current year in the U.S.

GM also appointed Chuck Stevens as its new chief financial officer.

The auto maker also announced a dividend of 30 cents a share, the shareholder reward since 2008.

Fastenal Company ((FAST)) dropped 5.6% to $45.56 after the seller of industrial and construction supplier reported lower than expected earnings and sales in the last quarter.

Tesla Motors ((TSLA)) increased 2.4% to $165.01 after the company confirmed it sold 6,900 Model S cars in the fourth-quarter to December ahead of its sales outlook.