US stocks rose despite negative retail sale report

July 16, 2013 7:08 am

US stocksUS stocks climbed continuing the S&P 500 streak from last week which is the longest since January. Retail sales report issued yesterday showed disappointing numbers  and raised speculations about the Fed continuing the bond buying program. However, Citigroup earnings report offset the weak economical data. A better-than-forecast manufacturing report also helped neutralize worse-than-anticipated U.S. retail-sales data.

The S&P 500 climbed 0.1% to 1,682.50 at 4 p.m. in New York. The index has gained for eight straight days, the longest stretch since Jan. 25. The Dow Jones Industrial Average added 19.96 points, or 0.1%, to 15,484.26. Both benchmarks reached record closing highs. Analysts at Bank of America Merrill Lynch raised their 2013 target for the S&P 500 to 1,750 from 1,600 previously.

“It’s a big earnings week, but expectations are modest, so it’ll be interesting to see how companies perform with lowered expectations,” Paul Mangus, head of equity research and strategy at Wells Fargo Private Bank said for The Wall Street Journal.

In corporate news, Boeing Co. the aicraft manufacturer’s shares rose 3.7%, regaining a large chunk of Friday’s losses, after British investigators reportedly found no evidence that batteries caused a fire on one of the manufacturer’s 787 planes.

Tiffany & Co., the world’s second-largest jewelry retailer, scored 3.6% to $79.78. Stifel Financial Corp. upgraded its recommendation on the shares to “buy” from “hold”, with a price target of $92.

Monster Beverage Corp. rose 1.6% to $60.80. Stifel said the maker of energy drinks is likely to beat second-quarter earnings estimates and raised the price target to $70 from previously set $62.

Financial companies in the S&P 500 rose 0.4% as a group, while the KBW Bank Index added 0.6% to its highest level since October 2008.

Later today a consumer price index is to be released. It’s expected to rise froom 1.4% to 1.6% according to analysts.

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