US stocks ended higher overnight after a choppy session, as the Fed's economic outlook and a positive government debt auction overshadowed a surprise drop in retail sales results. Indications that the global economy could be stabilizing provided investors with some optimism. In particular both France and Germany posted GDP growth in the second quarter, surprising economists.
The Dow Jones industrial average rose 37 points to 9,398. The S&P500 Index added 7 points to 1,013 and the NASDAQ rose 11 points to 2,009.
In economic news: The Commerce Department reported US retail sales fell 0.1% in July compared to an increase in sales of 0.8% in June.
In company news: Wal-Mart Stores (NYSE:WMT) shares rose 2.71% to $51.88. The giant retailer reported second-quarter earnings that beat expectations on cost cuts, and forecast full year earnings that could beat Wall Street estimates.
Cit Group (NYSE:CIT) shares added 13.28% to $1.45 after the lender agreed to provide a capital and liquidity management plan to its regulator within 15 days.
Bank of America (NYSE:BAC) shares closed 6.72% higher to $17. Bank of America has sued Colonial Bank for more than $1 billion in loans and cash, and urged a federal court to order the struggling lender not to sell certain assets, pushing the company into further trouble.
Ford Motor (NYSE:F) shares rose 2.6% to $7.90. The company said it was increasing production over the rest of the year to meet increased demand spurred by the U.S. government's "Cash for Clunkers" sales incentive program. Checking the NASDAQ Top 100: The standout performer overnight was Steel Dynamics which added 5.53% to $16.99. While Check Point Software Technologies and Maxim Integrated also ended stronger. The worst performing stock was Ryannair Holdings which fell 3.42% to $27.14. While Stericycle and Flextronics also lost ground overnight.
