3:10 PM New York – U.S. market indexes flirted in record territory as more than 150 companies are scheduled to report earnings this week. McDonald’s, Federal Mogul, Hasbro and Gannett reported mixed earnings. Existing home sales declined 1% in June.
U.S. stocks traded higher and S&P 500 index jumped to a record high after earnings report from McDonald’s, Hasbro and Gannett Co.
The S&P 500 index gained 0.2% to 1,695 and Nasdaq Composite Index added 0.4% to 3,601.44.
Existing home sales in June declined 1% to a seasonally adjusted rate of 5.08 million according to a report National Association of Realtors.
Annual sales rate was revised lower for May to 5.14 million rate from 5.18 million. Distressed sales accounted 15% of total sales and median existing price increased 13.5% from a year ago month to $214,000.
Market indexes in London declined 0.1% and in Frankfurt closed nearly unchanged. In Paris, CAC 40 index increased 0.4%.
European markets closed higher for the fourth day in a row and Royal Philips and UBS AG reported higher earnings. UBS also said it is in settlement talks with U.S. regulators for its role in selling the mortgage backed bonds between 2004 and 2007 and did not disclose the amount. The company also said it booked a pre-tax charge of 865 million in Swiss francs for the mortgage and Swiss and UK tax agreement.
Also, In London a private equity fund raised 10.5 billion euros for a leveraged buyout fund, the largest fund since the onset of financial crisis in the euro zone.
Markets in Asia closed mixed and the Nikkei index in Tokyo gained after ruling coalition controlled by LDP Party secured a majority in the upper house election on Sunday.
LDP regained controlled of both chambers of parliament for the first time since 2007 and Prime Minister Shinzo Abe is expected to implement structural and labor markets reform.
U.S. Stocks in Review
Home builders were under pressure after the latest report showed an unexpected decline in home sales.
D.R. Horton (DHI
) declined more than 1.5%, Lennar (LEN
) dropped 1.6% and Pulte Group dropped 1.7%.
) dropped 3% after the company agreed to repurchase $1.16 billion shares from an activist investor Daniel Loeb controlled hedge fund Third Point LLC. Loeb and two other directors will resign from Yahoo board. The purchase of share by Yahoo will also guarantee a profit of $655 million in profit to Third Point.
) declined more than 3% after the fast food chain reported weaker than expected earnings and said outlook for the rest of the year is vulnerable to weak economic fundamentals.