Mining companies, banks help boost market
Mining companies and banks helped the stock market overcome some disappointing quarterly performances Monday.
Poor second-quarter results from a handful of large U.S. companies weighed on stocks. McDonald’s fell after it reported lower global sales and warned of a tough year ahead. Media company Gannett dropped after its revenues fell short of financial analysts’ expectations.
But gold and copper prices boosted mining companies, and that helped nudge the market to another all-time high.
Investors are looking ahead to a busy week of corporate earnings. More than 150 companies in the Standard & Poor’s 500 stock index are reporting quarterly earnings over the next four days. For the most part, corporations have reported results that have beaten analysts’ expectations, though there have been some big letdowns. On Friday, Microsoft plunged after it reported declining revenue and a big write-off on its new tablet computer. Coca-Cola slumped last Tuesday after the company said it sold less soda in North America.
“Earnings are not stellar,” said Brad Reynolds, chief investment officer at investment adviser LJPR. “It just seems that the market is OK with that.”
Investors were more than OK with gold Monday. Its price climbed above $1,300 for the first time in a month, giving mining stocks a big lift.
Gold rose $43.10 to $1,336 an ounce, its biggest gain in more than a year. Copper rose 4 cents to $3.19 per pound.
Among mining companies, Newmont Mining rose $1.66, or 5.8 percent, to $30.35. Freeport- McMoran Copper & Gold gained 59 cents, or 2.1 percent, to $29.15.