S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

U.S. Stocks Extend Gains on Durable Goods Orders Surge


Author: Nichole Harper
ticker.com
Last Update: 1:12 PM ET August 26 2014

12:45 PM New York – Stocks on Wall Street rose after durable goods soared in July and consumer confidence index jumped to the most since October 2007. Burger King agreed to acquire Tim Hortons for $11 billion in a deal financed by Warren Buffett.

Stocks on Wall Street gained after durable goods soared in July and consumer confidence unexpectedly increased.

S&P 500 index increased 6.72 or 0.4% to 2,004.65 and the Nasdaq Composite gained 0.3% or 13.50 to 4,570.86.

Burger King and Tim Hortons Agree to a Deal

Burger King Worldwide Inc agreed to acquire Tim Hortons Inc for C$12.5 billion or $11.4 billion in a deal partly financed by Warren Buffett’s Berkshire Hathaway Inc.

Tim Hortons investors will receive C$65.50 a share and 0.8025 share of the combined entity, according to the company statements.

Best Buy Co dropped after sales declined more than expected and DSW Inc soared 10% after quarterly profit rose more than expected.

The Conference Board reported consumer confidence index increased to 92.4 in August from a revised 90.3 in July. The index increased to the most since October 2007.

Durable Goods Orders Soar

Durable goods orders soared 22.6% in July from a revised 2.7% increase in June, the Commerce Department said today in Washington.

Orders excluding transportation equipment decreased 0.8% in July after a 3% increase in June.

The transportation orders were boosted by a surge in aircraft orders after the Farnborough Air Show in the U.K. Boeing Co received 324 orders for planes compared to 109 in June.

Non-military capital goods orders excluding aircraft decreased 0.5% in July after a revised June increase of 5.4% from the previous estimate of 1.4%.

Business investments in equipment soared at 7% annual rate in the second quarter to June from a 1% annual decline in March quarter, the Commerce Department’s report on gross domestic report showed.

U.S. Movers

Best Buy Co Inc (BBY) plunged 6.3% or $2.02 to $29.97 after the electronics products retailer reported revenue in the second-quarter ending on August 3 declined 4% to $8.90 billion from a year ago period. Comparable store sales in the quarter slipped 2% while and online comparable sales surged 22%.

Net income in the quarter tumbled 45.1% to $146 million or 42 cents a diluted share compared to $266 million or 77 cents from a same quarter last year.

DSW Inc (DSW) surged 9.2% or $2.60 to $30.98 after the footwear and accessories retailer reported net sales in the second-quarter ending on August 2 jumped 4.5% to $587 million from a year ago period.

Net income in the quarter rose 1.8% to $34.3 million or 38 cents a diluted share compared to $33.7 million or 37 cents from a same quarter last year.

European Markets

In London trading, FTSE 100 index gained 0.5% or 31.37 to 6,806.62 and in Frankfurt the DAX index rose 0.3% or 32.55 to 9,542.69.

In Paris, CAC 40 index jumped 0.7% or 32.75 to 4,374.86.

Antofagasta net plunged 16% after revenue declined 4%. Petrofac profit tumbled 44% and revenue plunged 11% but backlog surged 35% to $20 billion. Regus declined 5% to £25 million. UTV Media profit climbed 132% and revenue soared. WPP profit surged 26% to £396 million.

  1  2
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc