Stocks ended Tuesday’s trading mixed despite better-than-expected earnings reports from several major retailers.
The Dow Jones industrial average (^DJI) lost 8 points, or 0.05 percent, to 15,003, falling for the fifth day straight day, continuing its longest losing streak of the year. The Standard Poor’s 500 index (^GPSC) rose 6 points, or 0.4 percent, to 1,652, and the Nasdaq composite index (^IXIC) gained 25 points, or 0.7 percent, to 3,613.
Retailers that reported earnings earlier in period disappointed investors and the stocks took a beating. But not so Tuesday. Best Buy, Home Depot and J.C. Penney each rose after they posted quarterly their results.
Best Buy (BBY) jumped 13.2 percent to $34.78, after the world’s largest consumer-electronics chain reported a higher quarterly profit. Home Depot (HD) shares added 1.2 percent to $74.29 after the world’s largest home improvement chain raised its yearly outlook. J.C. Penney (JCP) stock gained 6 percent to $14.01 after the troubled retailer said the back-to-school season has so far been “encouraging.”
Ally Financial, the former financing arm of General Motors (GM), plans to sell 1 billion of unlisted shares to investors and repay taxpayers nearly $6 billion taking a big step closer to exiting U.S. government control. With the transactions, Ally will have repaid the Treasury about $12.1 billion of the $17.2 billion taxpayer bailout it received during the financial crisis.
More Stocks in the News:
- TJX Cos. (TJX), the owner of the discount T.J. Maxx and Marshalls chains, reported better-than-expected quarterly sales, bucking a trend of weak results at a host of retailers. The shares gained nearly 7 percent to $54.24.
- Urban Outfitters (URBN) shares gained 8.2 percent $43.19 a day after the apparel retailer’s quarterly profit beat market estimates.
- Barnes Noble (BKS) shares tumbled more than 12 percent to $14.61 after the book retailer reported a steeper quarterly loss and its founder dropped his plan to buy the company’s stores.
- Shares of tech-bellwether Intel (INTC) rose 1.1 percent at $22.52, the biggest gainer on the Dow, while Cisco Systems (CSCO) jumped nearly 0.2 percent to $24.32.
- China-based Trina Solar (TSL) reported a smaller quarterly loss as it shipped more solar panels to newer markets and diversified sources of revenue. Its shares rose 15.4 percent to $7.82.
- Shares of Corinthian Colleges (COCO) jumped 11.6 percent to $2.40 after the for-profit education company said it met a government financial responsibility standard to participate in federal financial aid programs for students.
What to Watch Wednesday:
- The National Association of Realtors reports existing-home sales for July at 8:30 a.m. Eastern time.
- The Federal Reserves releases minutes from the its July interest-rate meeting at 2 p.m.
These major companies are scheduled to report quarterly corporate earnings:
- American Eagle Outfitters (AEO)
- Hewlett-Packard (HPQ)
- L Brands (LTD)
- Lowe’s Cos. (LOW)
- PetSmart (PETM)
- Staples (SPLS)
- Target (TGT)
- Toll Brothers (TOL)
–Compiled from staff and wire reports.