The Dow Jones Industrial Average today saw meager gains today as concerns about the Chinese currency devaluation and an uptick in U.S. jobless claims offset by optimism over Greece’s bailout package and improved retail figures last month. The Dow gained five points on the day.
The U.S. Commerce Department reported retail sales jumped 0.6% in July, tempering concerns about June’s 0.3% decline and broader worries about the U.S. economy. Several analysts have suggested this is a sign of continued strength in the economy and could provide the U.S. Federal Reserve with greater ammunition to raise interest rates in September. Discretionary stocks rallied on the news.
Shares of Cisco SystemsInc. (Nasdaq: CSCO) offered the biggest boost to the Nasdaq and the S&P 500 after surging nearly 4% on stronger than expected quarterly earnings. It was a mixed day for retail stocks despite the uptick in aggregate spending. Today, shares of Coty Inc. (NYSE: COTY) gained 6.1% after the company beat Wall Street sales projections for the first time in five earnings reports. Meanwhile, shares of Kohl's Corp. (NYSE: KSS) dipped 8.8% after the company announced a weak second-quarter earnings report.
The S&P 500 Volatility Index (VIX), the market’s fear gauge, dipped 1% on the day.
Top Stock Market News Today
Stock Market News: The Dow Jones saw slight gains today as investors eyed data to gauge a better understanding of current growth levels during the third quarter. The markets kept a tight eye on China, which devalued its currency on three consecutive days. However, its central bank has stated it has no plans to devalue the yuan any further. Eight of 10 S&P sectors were in the red this afternoon, with only Consumer Goods and Healthcare keeping the index afloat.
Oil Moves:Oil prices cratered again on Thursday, with the S&P 500 Energy Index sliding another 1.4% on the day. Concerns about oversupply again rattled traders and pushed prices to a near six-and-a-half year low. WTI crude futures for September slumped 2.6% to hit $42.17 per barrel. Meanwhile, Brent oil prices dipped 1% to $49.14 per barrel.
On Tap Friday: Tomorrow, investors will evaluate a few critical data points in the U.S. economy, including monthly reports on the Producer Price Index, Industrial Production, and Consumer Sentiment. Companies reporting earnings tomorrow include J.C. Penney Co. Inc. (NYSE: JCP), Country Style Cooking Restaurant Chain Co. Ltd. (NYSE: CCSC), Advantage Oil & Gas Ltd. (NYSE: AAV), and Liberty TripAdvisor Holdings Inc. (Nasdaq: LTRPA).
Stocks to Watch: TSLA, HLI, NWS, GPRO
Stocks to Watch No. 1, TSLA: Shares of Tesla Motors Inc. (Nasdaq: TSLA) were up more than 1.5% this morning after the company announced plans to raise up to $500 million in a public offering of stock. The company’s CEO, who plans to purchase roughly $20 million in shares, also provided some upbeat comments on pending models of its vehicles. You can read a breakdown of the deal here.
Stocks to Watch No. 2, HLI: Shares of 43-year-old boutique investment bank Houlihan Lokey Inc. (NYSE: HLI) gained more than 5.4% this afternoon during its first day of trading. The company reversed course after falling below its target initial public offering price of $21. The company is trying to raise money at a time when mergers and acquisition activity is providing a big boom to the stock prices of public firms engaged in deal making services.
Stocks to Watch No. 3, NWS: Shares of News Corp. (Nasdaq: NWS) jumped more than 7.4% after the company announced plans to introduce a biannual dividend of $0.10 per share. The news helped offset concerns about the firm reporting a fiscal fourth-quarter net loss of $379 million. The company announced it has successfully implemented a cost-cutting program at its news businesses.
Stocks to Watch No. 4, GPRO: Shares of GoPro Inc. (Nasdaq: GPRO) pushed upward 4.8% today after investment firm Cowen initiated coverage with a rating of "Outperform" on optimism over the company’s new products and growing customer base. Cowen’s analysts set a price target of $76, a near 33% gain from yesterday’s closing price.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.