US stocks closed the session higher overnight, after a better than expected second quarter result from Goldman Sachs, however investors still showed some caution ahead of the rest of the corporate results to be reported in the weeks to come.
The Dow Jones industrial average rose 28 points to 8,359. The S&P500 Index added 5 points to 906 and the NASDAQ rose 7 points to 1,800. In economic news: The Commerce Department reports that retail sales for June rose 0.6 per cent after rising 0.5 per cent in May. Economists had predicted a rise of 0.4 per cent.
And the Labor Department reports that the Producer Price index, a measure of wholesale inflation, climbed 1.8 per cent in June after a 0.2 per cent rise the month before. Expectations were for a rise of 1 per cent.
In company news: Shares in healthcare products manufacturer Johnson & Johnson (NYSE:JNJ) rose 0.88 per cent to $58.23. The company posted a drop in earnings for the second quarter to $1.15 a share compared to $1.18 a share a year ago. The result however beat Analysts expectations of a fall in profit to $1.11 a share.
Technology company Dell Inc (NASDAQ:DELL) shares lost 8.06 per cent to $11.97. According to CNN Money, Dell says it expects to see a slight decrease in gross margins, which is a measure of profitability. However the company also says it expects to report an increase in revenue for the second quarter.
Shares in investment bank Goldman Sachs Group Inc (NYSE:GS) added 0.15 per cent to $149.66. The company posted a 33 per cent rise in earnings for the second quarter, reporting profit of $3.44 billion, or $4.93 a share compared to $2.1 billion, or $4.58 a share, a year ago. According to Reuters the result was helped by a strong gain in trading, which was partially offset by a one off charge to pay back loans from the government.
Shares in agricultural products company Monsanto Company (NYSE:MON) up 1.56 per cent to $74.70. The company has lept back into the wheat industry by acquiring WestBred in a deal worth $45 million.
Checking the NASDAQ Top 100: The best performer was Flextronics which gained 5.3 per cent to $4.57. Wynn Resorts and Liberty Media also closed stronger. On the downside, the worst performer was Dell, which fell 8.06 per cent to $11.97. Ryanair Holdings and First Solar also closed weaker.
