US close: Investors bide time ahead of Fed meeting

A key Wall Street gauge finished higher for a fourth week in a row, as investors reacted to better than expected corporate results and economic data.

The Dow Jones Industrial Average gained 53.62 points or 0.29% to end the session at 18,570.85, while the S&P 500 tacked on a further 9.86 points or 0.46% to close at 2,175.03, while the Nasdaq Composite was up by 26.26 points or 0.52% to reach 5,100.16 by the close of trading.

Trading volumes were lighter than usual, while the Chicago Board Options Exchange´s Volatlity index retreated 5.65% to 12.02, as investors bided their time ahead of the next US central bank policy meeting.

It was a busy day for corporate news. General Electric slipped despite reporting earnings per share of 51 cents for the second quarter, up nearly 65% on the year earlier and ahead of estimates. However, it also reported a 2% drop in its orders for the quarter. Its stock had gained 22% year-to-date.

From a sector standpoint the best performing industrial groups were: Furnishings (2.29%), Durable household goods (2.12%) and Trucking (2.05%).

Coffee shop chain Starbucks was just a touch higher despite its third-quarter revenue released late on Thursday falling short of analysts’ expectations.

Whirlpool pushed up after posting better-than-expected net profit for the second quarter, but Honeywell slid after its second-quarter earnings beat estimates but sales missed.

Chipotle Mexican Grill was a little firmer despite reporting an 82% decline in second-quarter profit on Thursday.

Advanced Micro Devices surged after saying it swung to a profit in the second quarter and reported its first sales increase in nearly two years.

Stanley Black&Decker, Southwestern Energy and American Airlines were also among the day´s best performers on the heels of their latest financials.

On the data front, Markit’s flash manufacturing purchasing managers’ index rose to an eight-month high of 52.9 in July from 51.3 in June.

This was ahead of expectations for a reading of 51.6, led by a robust expansion of incoming new work and the fastest upturn in production volumes for eight months.

Chief economist Chris Williamson said: “July saw manufacturers battle against a strong dollar, the ongoing energy sector downturn and political uncertainty ahead of the presidential election, yet still achieved the best growth seen since last year.

“It remains too early to say if this is the start of a stronger upturn, but this is a welcome and encouraging sign of revival after the second quarter, in which the PMI signalled the sector’s worst performance for over six years.”

Next week, the focus will be on the Federal Open Market Committee’s rate announcement on Wednesday. HSBC expects the Fed to leave the target range for the federal funds rate unchanged at 0.25% to 0.50%.

“We expect the July policy statement will be amended to reflect the latest monthly data showing a strong rebound in employment gains,” the bank said. "However, we expect that the forward guidance elements of the statement will be unchanged, with the Committee continuing to expect ‘gradual adjustments’ in the stance of monetary policy.”

At the same time, oil prices were in the red. West Texas Intermediate ended the day 41 cents lower at $44.19 a barrel.

S&P 500 - Risers
Southwestern Energy Co. (SWN) $14.47 +9.54%
Chesapeake Energy Corp. (CHK) $5.39 +8.45%
Chipotle Mexican Grill Inc. (CMG) $442.48 +5.84%
Stanley Black & Decker Inc. (SWK) $120.49 +4.80%
CIGNA Corp. (CI) $146.00 +4.05%
American Airlines Group (AAL) $36.36 +4.00%
Centene Corp. (CNC) $75.39 +3.27%
United States Steel Corp. (X) $21.16 +3.12%
Hartford Financial Services Group Inc. (HIG) $44.77 +2.99%
Anthem Inc (ANTM) $142.94 +2.83%

S&P 500 - Fallers
Skyworks Solutions Inc. (SWKS) $64.81 -8.62%
Paypal Holdings Inc (PYPL) $37.42 -6.75%
Transocean Ltd. (RIG) $11.38 -6.18%
Stryker Corp. (SYK) $117.03 -4.51%
CF Industries Holdings Inc. (CF) $25.18 -4.22%
FMC Technologies Inc. (FTI) $26.04 -4.16%
Harman International Industries Inc. (HAR) $79.72 -2.91%
Endo International Plc (ENDP) $17.50 -2.78%
Honeywell International Inc. (HON) $115.61 -2.57%
Deere & Co. (DE) $80.12 -2.55%

Dow Jones I.A - Risers
Visa Inc. (V) $79.91 +1.42%
Microsoft Corp. (MSFT) $56.57 +1.38%
American Express Co. (AXP) $64.28 +1.34%
Verizon Communications Inc. (VZ) $56.10 +1.32%
Intel Corp. (INTC) $34.66 +1.14%
International Business Machines Corp. (IBM) $162.07 +1.01%
E.I. du Pont de Nemours and Co. (DD) $68.43 +0.85%
McDonald's Corp. (MCD) $128.26 +0.85%
Coca-Cola Co. (KO) $45.83 +0.84%
Unitedhealth Group Inc. (UNH) $143.69 +0.57%

Dow Jones I.A - Fallers
General Electric Co. (GE) $32.06 -1.63%
Caterpillar Inc. (CAT) $79.38 -0.79%
Apple Inc. (AAPL) $98.66 -0.77%
United Technologies Corp. (UTX) $105.13 -0.68%
Nike Inc. (NKE) $56.73 -0.46%
Walt Disney Co. (DIS) $97.71 -0.31%
Johnson & Johnson (JNJ) $125.03 -0.10%
Boeing Co. (BA) $133.47 -0.04%

Nasdaq 100 - Risers
Vodafone Group Plc ADS (VOD) $31.34 +4.09%
American Airlines Group (AAL) $36.36 +4.00%
Nvidia Corp. (NVDA) $54.67 +2.72%
Citrix Systems Inc. (CTXS) $87.08 +2.18%
Liberty Media Corporation - Class A (LMCA) $21.23 +2.17%
Autodesk Inc. (ADSK) $58.78 +2.08%
TripAdvisor Inc. (TRIP) $70.09 +2.04%
QUALCOMM Inc. (QCOM) $61.15 +2.04%
Tractor Supply Company (TSCO) $91.52 +1.98%
Biogen Inc (BIIB) $287.78 +1.89%

Nasdaq 100 - Fallers
Skyworks Solutions Inc. (SWKS) $64.81 -8.62%
Endo International Plc (ENDP) $17.50 -2.78%
Incyte Corp. (INCY) $86.41 -1.57%
Alexion Pharmaceuticals Inc. (ALXN) $125.80 -1.18%
Gilead Sciences Inc. (GILD) $86.55 -0.79%
Apple Inc. (AAPL) $98.66 -0.77%
Mylan Inc. (MYL) $46.59 -0.58%
Broadcom Limited (AVGO) $159.67 -0.46%
Walgreens Boots Alliance, Inc. (WBA) $81.35 -0.43%
Dish Network Corp. (DISH) $53.48 -0.43%