U.S. Stocks Extend Weekly and August Gains, European Markets Fall

Nichole Harper
29 Aug, 2014
New York City

U.S. market indexes are set to advance in the week and in August and European markets declined and the ruble declined to a record low as the Ukraine conflict escalated. U.S. consumer sentiment in August increased to a seven-year high.

[R]12:20 PM New York – U.S. market indexes are set to advance in the week and in August and European markets declined and the ruble declined to a record low as the Ukraine conflict escalated. U.S. consumer sentiment in August increased to a seven-year high.[/R]

Stocks on Wall Street see-sawed but indexes are set to gain in the week and the month despite the escalating violence in Ukraine.

S&P 500 index increased 1.99 to 1,998.73 and the Nasdaq Composite Index gained 6.39 to 4,564.05.

For the week, the S&P 500 index is up 0.3% and the Nasdaq Composite Index advanced 0.4%. For the August month, the S&P 500 index added 3.3% and the Nasdaq index soared 4.3%.

The Dow Jones Industrial Average gained 0.2% in the week and soared 2.9% in August.

In a separate report, U.S. consumer sentiment rose more than expected, for the final reading in August, according to the Thomson Reuters/University of Michigan Surveys of Consumers.

The sentiment increased to a seven year high to 82.5 in August from 81.8 in July.

U.S. consumer spending in July fell for the first time in six months. Consumer spending dipped 0.1% last month after advancing 0.4% in June, the Commerce Department reported today.

Spending declined on fewer auto sales and mild weather also reduced demand for utilities.

U.S. Movers

AstraZeneca ((AZN)) gained 2% to $75.69 on the news that the drugmaker has advanced its medicine MEDI-4736 into a mid-stage study in colorectal cancer.

Splunk Inc ((SPLK)) soared 15% to $51.87 after the bid data indexing software products maker posted strong revenue growth and raised its full-year outlook.

European Markets

In London trading, FTSE 100 index slid 0.1% or 7.45 to 6,798.35 and in Frankfurt the DAX index slipped 0.7% or 65.95 to 9,396.61.

In Paris, CAC 40 index fell 0.3% or 12.63 to 4,353.41.

Tesco Plc declined 7.5% to 227.80 pence after the second profit warning in two months. The U.K.-based groceries and home goods retailer forecasted profit between £2.4 billion and £2.5 billion for the year and for the six months ending on August 23 near £1.1 billion.

The retailer reduced its interim dividend by 75% to 1.16 pence per share.

Asian Markets

Markets in India were closed in observance of Ganesh Chaturthi and economic growth in the third largest Asian economy accelerated in June quarter.

Gross domestic product expanded at 5.7% from a year ago in June quarter after rising at 4.6% in March quarter, the Central Statistical Office said in New Delhi today.

Stocks in Tokyo closed lower and the broad Topix index fell in August as fighting escalated in Ukraine.

The Ministry of Economy, Trade and Industry said industrial production in July increased 0.2% on a monthly basis after declining 3.4% in June. On a yearly basis, industrial production dropped 0.9%.

In a separate report the department said retail sales in July jumped 0.5% to 11.81 trillion yen followed by 0.6% contraction in June. On a seasonally adjusted monthly basis retail sales dropped 0.5% after gaining 0.5% in June.

The Ministry of Internal Affairs and Communications reported that the seasonally adjusted unemployment rate in July was at 3.8% missing expectations for 3.7%.

Separately, the ministry said average of household spending in July plunged 5.9% to 280,293 yen following 3% contraction in June.

In a separate report agency said core consumer prices excluding fresh food climbed 3.3% in July, unchanged from June.

Inflation for Tokyo a leading indicator for nationwide trend jumped 2.8% in August from a year ago.

The Nikkei 225 Stock Average fell 35.27 or 0.2% to 15,424.59 and the broader Topix index slid 2.77 to 1,277.97.

For the week, Nikkei 225 slipped 0.7% and in the month dropped 1.3%.

The yen closed at 103.90 against one U.S. dollar.