Stock Market Wrapup July 27th
Stocks went on a roller-coaster ride today following large losses yesterday. Towards the close, the selling intensified, with the Dow ending down -208 points, the Nasdaq losing -37, and the S&P 500 finishing the session -24 points lower. Upbeat GDP data could not revive stock prices as investors did not want to hold stocks heading into the weekend. Oil, meanwhile, rose $2.07 to close at $77.02.
In economic news, the Commerce Department said Gross Domestic Product (GDP) rose a better-than-expected 3.4% in the second quarter. Wall Street economists were expecting a gain of 3.2%. The personal expenditure index, a key gauge of inflation, rose 4.3% in the second quarter. Adding to the economic data was the Reuters/University of Michigan Consumer Confidence Index, which rose to 90.4 from 85.3 in June.
Corporate earnings continued to filter in on the last day of trading for the week. Oil giant Chevron (NYSE: CVX - News) reported that its second-quarter profit climbed 24% to $5.38 billion, or $2.52 cents a share, up from $4.35 billion, or $1.97 cents a share, last year. Revenues hit $56.09 billion, up from $53.54 billion in the same quarter a year ago. Excluding a gain from the sale of Dynegy (NYSE: DYN - News) stock and a loss related to debt redemption, EPS would have been $2.37, which on that basis would have beat consensus estimates by 7 cents.
Elsewhere, Fortune Brands (NYSE: FO - News) said net income came in at $232 million, or $1.48 a share, down -6% from the $247.8 million, or $1.63 a share, it recorded last year. The decline was attributable to a tax-related gain last year. Excluding a restructuring charge, EPS was $1.53, which handedly beat analyst estimates of $1.44. Net sales rose 4% to $2.35 billion on strength of Spirits and its golf business. Shares rose 1.5% on the session.
In M&A, medical technology company Medtronic (NYSE: MDT - News) agreed to acquire Kyphon (Nasdaq: KYPH - News) for $3.9 billion, or $71 a share. The deal represents a premium of 36% over where Kyphon's stock closed yesterday. The deal will help Medtronic expand its growing spinal treatment business.
In other news, shares of clothing retailer Gap (NYSE: GPS - News) rose 5.2% after the company announced that it has hired Glen Murphy as CEO. Murphy is a veteran of the food and drug industry. He will replace Robert Fisher.
By the BullMarket.com Staff
In economic news, the Commerce Department said Gross Domestic Product (GDP) rose a better-than-expected 3.4% in the second quarter. Wall Street economists were expecting a gain of 3.2%. The personal expenditure index, a key gauge of inflation, rose 4.3% in the second quarter. Adding to the economic data was the Reuters/University of Michigan Consumer Confidence Index, which rose to 90.4 from 85.3 in June.
Corporate earnings continued to filter in on the last day of trading for the week. Oil giant Chevron (NYSE: CVX - News) reported that its second-quarter profit climbed 24% to $5.38 billion, or $2.52 cents a share, up from $4.35 billion, or $1.97 cents a share, last year. Revenues hit $56.09 billion, up from $53.54 billion in the same quarter a year ago. Excluding a gain from the sale of Dynegy (NYSE: DYN - News) stock and a loss related to debt redemption, EPS would have been $2.37, which on that basis would have beat consensus estimates by 7 cents.
Elsewhere, Fortune Brands (NYSE: FO - News) said net income came in at $232 million, or $1.48 a share, down -6% from the $247.8 million, or $1.63 a share, it recorded last year. The decline was attributable to a tax-related gain last year. Excluding a restructuring charge, EPS was $1.53, which handedly beat analyst estimates of $1.44. Net sales rose 4% to $2.35 billion on strength of Spirits and its golf business. Shares rose 1.5% on the session.
In M&A, medical technology company Medtronic (NYSE: MDT - News) agreed to acquire Kyphon (Nasdaq: KYPH - News) for $3.9 billion, or $71 a share. The deal represents a premium of 36% over where Kyphon's stock closed yesterday. The deal will help Medtronic expand its growing spinal treatment business.
In other news, shares of clothing retailer Gap (NYSE: GPS - News) rose 5.2% after the company announced that it has hired Glen Murphy as CEO. Murphy is a veteran of the food and drug industry. He will replace Robert Fisher.
By the BullMarket.com Staff
posted by Stock Administrator @ 8:27 PM
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