By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market closed modestly
higher, boosted by better-than-expected inflation and housing
reports as well as a flood of second-quarter earnings reports.
The S&P 500 (SPX) rose 10 points, or 0.6%, higher at
1,984.47, led by stellar results from Chipotle Mexican Grill Inc.
The benchmark index closed within a striking distance from its
record closing level, reached on July 3.
The Dow Jones Industrial Average (DJI) added 68 points, or 0.4%,
to 17,124.82. The Nasdaq Composite (RIXF) gained 29 points, or
0.8%, to 4,460.72.
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action.
"Earnings so far are modestly above expectations, though
revenues continue to be on a weak side," said Jim Russell, senior
equity strategist at U.S. Bank Wealth Management.
Russell expressed concerns about third and fourth quarter
expectations, which he views as high, given modest revenue growth
forecasts.
In economic news, consumer prices gained again in June, but the
rise was not as broad-based as in the prior month and was driven
mainly by the rising cost of gasoline.
Inflation, as measured by CPI, has picked up noticeably in
recent months, but Tuesday's tame reading could ease some of those
concerns.
Rising for a third month, sales of existing homes grew in June
to the highest annual rate since October.
Six Dow Industrials components reported ahead of the market
open. Coca-Cola (KO) shares fell 3.4% after the beverage giant
reported second-quarter sales that fell short of forecasts, while
profit topped estimates.
McDonald's (MCD) shares dropped 1.4% after the fast-food
restaurant chain reported earnings that came in below
expectations.
Herbalife Ltd. (HLF) jumped 23% -- the biggest one-day
percentage gain -- after the supposed "death blow" that hedge-fund
manager Bill Ackman intended to deliver against the company had the
opposite effect.
Chipotle Mexican Grill Inc. (CMG) shares rallied 12%, making it
the biggest gainer on the S&P 500 index. The fast-casual
restaurant chain lifted its full-year sales outlook late Monday as
it reported profit and sales for the second quarter that were far
better than Wall Street analysts had expected.
Shares of Comcast Corp. (CMCSA) rose 1.3% after the cable
company said second-quarter profit rose 15%, in part as it reduced
its rate of video-subscriber losses.
Read more about the day's big movers here.
Apple (AAPL) will release fiscal third-quarter results, and it
is forecast to have earned $1.23 a share for the quarter ended in
June, which reflects the 7-for-1 stock split that took effect June
9. During the same period a year ago, Apple earned a pre-split
$7.47 a share.
Microsoft (MSFT) also reports after the markets close. Also
read: Apple, Microsoft to awaken 'comfortably numb' markets.
Conflict between Russia and Ukraine remained in the spotlight,
as European Union foreign ministers are gathering in Brussels on
Tuesday to discuss further sanctions on Russia following the
incident.
In Tuesday's trade, European and Asian equity markets were
gaining. Oil futures (CLQ4) continued to rise, while metals prices
(GCQ4)were mostly lower. The dollar advanced against most
rivals.
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