World Markets Advance, U.S. Indexes Erase Losses

Nichole Harper
15 Aug, 2014
New York City

U.S. stocks erased losses in the session and markets in Europe registered best weekly gain in the year so far. S&P 500 index in the week gained 1.2% and the Nasdaq Composite advanced 2.2%. Retailer faced another day of sell off after weak results from Nordstrom, JC Penny and Dillard

[R]6:00 PM New York – U.S. stocks erased losses in the session and markets in Europe registered best weekly gain in the year so far. S&P 500 index in the week gained 1.2% and the Nasdaq Composite advanced 2.2%. Retailer faced another day of sell off after weak results from Nordstrom, JC Penny and Dillard’s.[/R]

U.S. stocks opened lower after weak results from retailers but indexes erased losses by close.

Markets in Europe gained the most in the year so far after tensions between Russia and Ukraine failed to waver market sentiment.

Ukraine and Russia sparred again a convoy carrying goods crossed from Russian territory. Ukrainian military spokesman said government troops faced fire and shelling from rebels and rounds fired from Russia.

S&P 500 index decreased 0.12 to 1,955.06 and the Nasdaq Composite Index increased 11.92 to 4,464.93.

U.S. Movers

Dillard''s, Inc ((DDS)) plunged 6.8% or $7.83 to $107.77 after the apparel, cosmetics and home furnishing retailer stated net sales in the second-quarter ending in June edged up 0.7% to $1.47 billion from a year ago period. Comparable stores sales in the quarter increased 1%.

Net income in the quarter dropped 5.5% to $34.5 million or 80 cents a diluted share compared to $36.5 million or 79 cents from a same quarter last year.

Monster Beverage Corp ((MNST)) surged 29.9% or $21.37 to $93.07 after the Coca-Cola Company agreed to acquire a 16.7% stake in non-carbonated beverage and energy drinks maker valued at $2.15 billion.

Under the agreement, Coke will have two directors on Monster''s board. The transaction is expected to close by the end of this year or early in 2015.

European Markets

European investors bid up stocks this week after positive comments from Russian President Putin.

DAX Index in Frankfurt gained 3.2% in the week after plunging 10% by August 8 from its record high in July. ASE Index in Greece rebounded 6.4% after dropping to a low on Aug 8 since October.

European market indexes advanced on the expectations of central bank action after the latest economic data showed weakness across the euro zone.

Germany and Italy contracted 0.2% in the second quarter from the first and France stagnated, according to the latest data released by the Eurostat.

Across the entire euro zone of 18-nations, economy stagnated in the second quarter on a quarterly basis and rose 0.2% from a year ago quarter.

BHP Billiton Plc jumped 2.2% to 2,069.50 pence after the U.K.-based mining company plans to spin-off its non-core assets to simplify the portfolio of assets collected over a decade.

The company announcements did not spell out details but investors set expectations of more announcements at the time of earnings release next week.

Asian Markets

Stocks in Tokyo advanced for the third day in a row and the yen traded above 102 against the U.S. dollar and fell 0.6% in the week after geopolitical tensions eased.

Aderans, the hair transplant service provider reported second monthly surge in revenues in a row.

The Nikkei 225 Stock Average edged up 3.77 to 15,318.34 and the broader Topix index rose 0.18 to 1,270.68. For the week, Nikkei 225 climbed 3.6%.

The yen closed at 102.54 against one U.S. dollar.