Indexes on Wall Street Reach New Highs

Nichole Harper
18 Nov, 2014
New York City

Tollbooth Index jumped to record high after a broad rally in market was led by healthcare stocks. S&P 500 and Dow Jones closed at records as well. Crude oil fell 1.4% and gold gained 1.2%. Retailers were in focus after Home Depot reported better-than-expected earnings.

[R]5:00 PM New York – S&P 500 Index and Tollbooth Index jumped to record highs after a broad rally in market was led by healthcare stocks. Commodities traded mixed but crude oil fell 1.4% and gold gained 1.2%. Retailers were in focus after Home Depot reported better-than-expected earnings and Urban Outfitters missed estimates.[/R]

Stocks on Wall Street advanced and the S&P 500 index close at an all-time record high on a broad market rally.

Small cap stocks and healthcare sector stocks rebounded after a week of lacklustre trading and for the year the Tollbooth index has gained more than 9%.

In stock market trading, Tollbooth Index rose 0.2% or 15.28 to 9,832.36.

S&P 500 index increased 8.70 or 0.4% to 2,050.04 and the Nasdaq Composite Index gained 24.86 or 0.5% to 4,695.86.

In the year so far, the S&P 500 index is up 11%, and the indexes have made a slow but steady climb in November after a deep sell-off in two months to October.

U.S. Movers

The Home Depot, Inc ((HD)), the home improvement retailer reported sales in the third-quarter ending in September climbed 5.4% to $20.5 billion from a year ago period.

Net earnings in the quarter surged 7.1% to $1.5 billion or $1.15 a diluted share compared to $1.4 billion or 95 cents from a same quarter last year.

The company forecasted diluted earnings per share for the fiscal 2014 to grow by 21% to about $4.54 and intent to repurchase additional $1.26 billion of shares in the fourth-quarter.

TJX Companies Inc ((TJX)), the off-price apparel and home fashions retailer said net sales in the third-quarter ending in November 1 advanced 6% to $7.37 billion fro a year ago period. Comparable store sales in the quarter increased 2%.

Net income in the quarter dropped 4.4% to $595 million or 85 cents a diluted share compared to $622.6 million or 86 cents from a same quarter last year.

The retailer lifted diluted earnings per share guidance in the range of 86 cents to 90 cents, a 6% to 11% increase from last year’s 81 cents per share.

Comparable store sales to increase between 1% and 2% and merchandise margins to increase also.

European Markets

In London trading, FTSE 100 index gained 0.5% or 32.61 to 6,704.58 and in Frankfurt the DAX index climbed 1.5% or 137.82 to 9,444.17.

In Paris, CAC 40 index jumped 0.8% or 33.36 to 4,259.46.

In the European corporate news, Altice net loss widened and Carlyle and Cinven sold their stakes. AstraZeneca rose on long term outlook.

easyJet profit soared 13% to £450 million. Prudential new business profits in the third-quarter soared 17% to £1.5 billion. Wirecard acquired business assets from Visa.

Altice SA, the private equity firms Carlyle Group LP and Cinven Group Ltd sold 7.5 million shares valued at €341.3 million or $426 million in the company.

The company reported revenues in the third-quarter ending in September soared 133.8% to €832 million from €355.8 million a year ago period.

Net loss in the quarter widened from a year ago to €242.7 million compared to €69.2 million and diluted loss per share increased to €0.97 from €0.28.

easyJet Plc, the U.K.-based airline reported total revenue in the year ending in September climbed 6.3% to£4.53 billion from £4.26 billion a year ago period.

Net profit in the year soared 13.1% from a year ago to £450 million compared to £398 million and diluted earnings per share jumped to 113.2 pence from 100 pence.

Asian Markets

Market indexes in Japan jumped more than 2% after Prime Minster Shinzo Abe dissolved parliament. The yen dropped 0.9% against the dollar and the euro. GS Yuasa announced a new version of battery technology. Nichias Corp reported a surge in first-half earnings.

Stocks in Tokyo jumped after Prime Minister Shinzo Abe announced to dissolve parliament on Nov 21.

The yen declined against most currencies as the prime minister delayed the implementation of higher sales tax after the election.

The Nikkei 225 Stock Average climbed 370.26 or 2.2% to 17,344.06 and the broader Topix index jumped 28.75 or 2.1% to 1,394.88.

The yen closed down 0.9% to close at 116.60 against one dollar.

The Bank of Japan is scheduled to wrap up its two-day meeting tomorrow, the meeting is the first gathering of central bank policy maker after the last month when the bank expanded its already large stimulus program.

In Mumbai trading, the Sensex Index edged down 14.59 or 0.05% to close at 28,163.29. The CNX Nifty fell 4.85 or 0.06% to 8,425.90.

Reliance Industries Limited, the industrial to retail conglomerate subsidiary Reliance Jio signed syndicated term loan facilities of $1.5 billion to refinance its existing syndicated term loan.

Tata Power Company Limited, the integrated power company raised Rs 1,500 crore through the issue of non-convertible debentures.