On Wall Street, leading indices rose more than 1 percent on Tuesday, as strong business results from retail chains Wal-Mart and Home Depot, along with an announcement of a takeover in the agricultural sector, encouraged investors.
The Dow Jones index strengthened by 103 points, or 1.01 percent, to 10,405 points, while the S&P 500 rose 1.22 percent to 1,092 points, and the Nasdaq index increased by 1.26 percent to 2,209 points. The retail chains Wal-Mart and Home Depot positively influenced the market yesterday as they reported better-than-expected business results in the second quarter. Home Depot’s stock rose by 3.4 percent, while Wal-Mart’s increased by 1.2 percent. The price of Potash Corp of Saskatchewan’s stock jumped the most, by over 27 percent, after mining giant BHP Billiton offered $39 billion to acquire the world’s largest fertilizer producer. However, Potash rejected the offer as inadequate.
Although there was more optimism in the market yesterday than in previous days, analysts say it is too early to speak of a market recovery from the recent decline, when the Dow Jones lost nearly 400 points in four days. They say trading volume is thin, and many investors are still on vacation or are cautious due to unclear macroeconomic data. European stock markets also saw stock prices rise yesterday. The London FTSE index strengthened by 1.41 percent to 5,350 points, while the Frankfurt DAX jumped 1.57 percent to 6,206 points, and the Paris CAC rose 1.82 percent to 3,663 points. Additionally, on most Asian stock exchanges, stock prices rose today thanks to solid earnings from American retail chains Wal-Mart and Home Depot, which eased investor concerns regarding the slowdown in economic growth in China and other developed economies. (H)
