Stocks on Wall Street Rise on Earnings and Home Sales Data

Nichole Harper
22 Jul, 2014
New York City

Stocks on Wall Street rebounded after latest batch of earnings were ahead of expectations. Existing home sales increased to an 8-month high. Chipotle Mexican Grill same store sales surged. McDonald

[R]1:15 PM New York – Stocks on Wall Street rebounded after latest batch of earnings were ahead of expectations. Existing home sales increased to an 8-month high. Chipotle Mexican Grill same store sales surged. McDonald’s quarterly net declined 1%. Comcast profit increased on Internet subscriber growth.[/R]

Stocks on Wall Street advanced and consumer price index in June increased 0.3% and existing home sales in the month increased to an eight-month high.

Existing home sales increased in June 2.6% after rising at 5.4% in May, the National Association of Realtors reported today.

Sales increased to 5.04 million annual rate and price increase was slowest since March 2012 and inventories rose to a two-month high.

Tollbooth Index, the portfolio of stocks that tracks companies with rising bargaining power, slipped 0.6% or 58.01 to 9,443.17.

S&P 500 index increased 0.6% or 11.64 to 1,984.88 and the Nasdaq Composite Index added 34.88 to 4,459.54.

U.S. Movers

Chipotle Mexican Grill, Inc ((CMG)) surged 11.7% or $68.92 to $658.85 after the quick service restaurants operator said revenue in the second-quarter ending in June soared 28.6% to $1.05 billion from a year ago period. Comparable restaurant sales in the quarter climbed 17.3%.

Net income in the quarter jumped 25.5% to $110.3 million or $3.50 a diluted share compared to $87.8 million or $2.82 from a year earlier. Higher sales of burrito contributed to quarterly growth.

The company said price increased contributed 2.5 percentage point contributed to the same store sales increase of 17.3%. Average menu prices increased 6.5%. Average check increased 5% and catering business increased to 1.6% of quarterly revenues from 0.3% in the period a year ago.

The Coca-Cola Company ((KO)) declined 3% or $1.26 to $41.14 after the beverage maker reported net revenue in the second-quarter ending in June slid 1% to $12.57 billion a year earlier.

Net income in the quarter fell 3% to $2.60 billion or 58 cents a diluted share compared to $2.68 billion or 59 cents from a year earlier.

McDonald''s Corporation ((MCD)) slipped 1.2% or $1.22 to $96.32 after the quick service restaurants operator reported revenue in the second-quarter ending in June grew 1% to $7.18 billion in the same quarter a year ago.

U.S. comparable sales in the quarter fell 1.5% and from Europe comparable sales fell 1% while global comparable sales were relatively flat. Asia/Pacific, Middle East and Africa comparable sales increased 1.1%.

Net income in the quarter dropped 1% to $1.39 billion or $1.40 a diluted share compared to $1.40 billion or $1.38 from a year earlier.

Netflix, Inc ((NFLX)) plunged 4.6% or $20.93 to $431.12 after the television network service provider stated revenue in the second-quarter ending in June surged 25.2% to $1.34 billion a year ago.

Net income in the quarter climbed 141% to $71.02 million or $1.15 a diluted share compared to $29.47 million or 86 cents from a year earlier.

Verizon Communications Inc ((VZ)) rose 14 to $50.84 after the wireless network services provider reported revenue in the second-quarter ending in June jumped 5.7% to $31.48 billion a year ago period.

Net income in the quarter plunged 16.8% to $4.32 billion or $1.01 a diluted share compared to $5.20 billion or 78 cents from a year earlier.

European Markets

European markets rebounded but tensions between the European leaders and Russia overshadowed market sentiment. Also, rising military conflict in Ukraine and intense Israeli bombing campaign in Gaza also contributed to jitters.

In London trading, FTSE 100 index increased 0.9% or 57.16 to 6,785.60 and in Frankfurt the DAX index jumped 1% or 94.10 to 9,706.15.

In Paris, CAC 40 index climbed 1.1% or 48.34 to 4,353.08.

ARM Holdings net surged 88% to £118 million. AMS stop merger talk with Dialog Semiconductor. Credit Suisse net swung to a loss to 700 million francs. IG Group net jumped 4% to £3.4 million. Publicis net profit plunged 17% to €260 million.

Asian Markets

Stocks in Tokyo advanced after a three-day weekend and exporters and resource stocks led the market gain.

Stock exchanges in Japan trimmed ask and bid spread on 80 stocks from today.

The Nikkei 225 Stock Average jumped 127.57 or 0.8% to 15,343.28 and the broader Topix index gained 9.98 to 1,273.27.

The yen closed at 101.55 against one U.S. dollar.

In Mumbai trading, the Sensex Index increased 73.61 or 0.3% to close at 25,715.17 The CNX Nifty gained 20.30 to 7,684.20.

On the earnings front, Asian Paints net soared 23% and Nerolac profit soared 20%.

Exide profit climbed 17% and Hitachi Home net surged 202%. Thermax net declined 18% and Tata Coffee net plunged 25%.