NEW YORK (Reuters) – Stocks extended gains on Friday, with the Nasdaq up more than 2 percent and the Dow above 13,000 on rising hopes for further stimulus measures from Federal Reserve and the European Central Bank.
The Nasdaq Composite, which underperformed on Monday, was the smallest decliner among the three major US stock indexes in Tuesday’s session, thanks in part to Apple (AAPL.
O) shares’ gain of 2.6 percent after a source said a new product will makes its debut at an event in September.
Volume was below average as Wall Street wrapped up its second consecutive positive month, with most of the monthly gains accumulated last week on hopes for more action from both the Fed and the European Central Bank.
“Markets seem to be moving on talk, but we don’t think that’s going to be enough in the next few days,” said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.
N) slid 18.6 percent to $49.33 after the upscale handbag and leather goods maker reported lower than expected fourth quarter sales.
That drop was the worst single day percentage drop for Coach’s stock since September 17, 2001, which was the first trading day after the September 11 attacks on the World Trade Center and the Pentagon.
For the month of July, the Dow rose 1 percent, while the S&P 500 climbed 1.3 percent and the Nasdaq added 0.2 percent.
The Dow rose back above 13,000 for the first time since May and is now up 1.5 percent for the month.
After seven months, the S&P 500 has gained nearly 10 percent for the year, despite a slowing world economy.
The move was seen as an effort to force LSE to negotiate either a partnership or eventual merger, as well as to block other suitors such as NYSE Euronext, owner of the New York Stock Exchange.
It is the second largest stock exchange by market capitalization in the world, after the New York Stock Exchange.
O) was also one of the Nasdaq’s top gainers a day after the maker of integrated circuits posted a better than expected quarterly profit.
O) shares slid 6.2 percent to $21.71, their third consecutive record closing low, after a lackluster quarterly report last week showed decelerating user growth.
N) stock rose 1.4 percent to $24.04 after earlier hitting $24.48, its highest level since December 2007.
The stock rose more than 1 percent to just shy of $10 on the day.
The largest US drugmaker reported higher than expected quarterly earnings and affirmed its 2012 profit forecast.
Humana reported second quarter earnings that fell by more than expected and lowered its full year guidance.
Of the 294 companies in the S&P 500 that have reported earnings so far, 195 have surpassed analysts’ expectations.
US home prices rose for the fourth month in a row in May, suggesting the housing market’s recovery kept gaining traction, even as the broader economy is still struggling.
Other datashowed consumer confidence unexpectedly rose in July butspending fell in June for the first time in nearly a year asAmericans saved more.
James Parker is a business journalist based in San Francisco, California. James has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. James spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.
