Stock Market News For August 24, 2016

Upbeat new-home sales data and better-than-expected European private sector data led the benchmarks to close in the green on Tuesday. New home sales reached at its highest settlement in almost nine years, which in turn boosted investor sentiment. Moreover, economic data indicated that the Eurozone’s economic recovery has improved this month, reducing concerns over the impact of “Brexit”.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) increased 0.1%, to close at 18,547.30. The S&P 500 rose 0.2% to close at 2,186.90. The tech-laden Nasdaq Composite Index closed at 5,260.08 gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) increased 0.9% to settle at 12.38. A total of around 5.56 billion shares were traded on Tuesday, lower than the last 20-session average of 6.33 billion. Advancers outpaced declining stocks on the NYSE. For 65% stocks that advanced, 32% declined.

What Boosted the Benchmarks?

New home sales jumped 12.4% to a seasonally adjusted annual rate of 654,000 in July, reaching its highest settlement since October 2007. July’s reading beat the consensus estimate of 575,000 and also soared 31.3% year-over-year.

Gains in the housing market led the PHLX Housing Sector (HGX) to increase more than 1.8%. Some of its holdings including Meritage Homes Corporation ( MTH), LendingTree, Inc. (TREE), Lennar Corporation (NYSE:LEN) (LEN) and KB Home (KBH) rose 3.4%, 4.6%, 3% and 4.9%, respectively.

Also, shares of Toll Brothers Inc. (TOL) increased 8.8% after the company reported fiscal third quarter revenues of $1.27 billion, beating the Zacks Consensus Estimate of $1.25 billion (read more: Toll Brothers Q3 Earnings Lag, Stock Up on Sales Beat ).

Further, IHS Markit Ltd. (MRKT) reported that Europe’s composite Purchasing Managers Index increased to 53.3 in August from 53.2 in July. Also, manufacturing and service PMI came in at 51.8 and 52.8, respectively. A reading of more than 50 indicates expansion in economic activity.

Additionally, the Materials Select Sector SPDR (XLB) increased 0.9% and was the best performer among S&P 500 sectors. Key components from materials sector including CF Industries Holdings (NYSE:CF), Inc. (CF), Alcoa Inc (NYSE:AA). ( AA), Monsanto Company (NYSE:MON) (MON) and Freeport-McMoRan Inc. (FCX) rose 4.8%, 1.7%, 2.5% and 1.3%, respectively.

Separately, Best Buy Co (NYSE:BBY)., Inc’s (BBY) shares jumped 19.6% after posting better-than-expected fiscal second-quarter results. It was the best performer among the S&P 500 companies (read more: Best Buy Tops Q2 Earnings & Revenues, Stock Gains ).

Stocks that Made Headlines

Intuit (NASDAQ:INTU) Q4 Loss Lower than Expected, Revenues Top

Intuit Inc. (INTU) reported adjusted loss from continuing operations of 13 cents per share for the fourth quarter of fiscal 2016, which fared better than the Zacks Consensus Estimate of a loss of 23 cents per share. ( Read More)

Medtronic (NYSE:MDT) Completes HeartWare Takeover for $1.1 Billion

Medical technology giant Medtronic plc (MDT) recently completed the acquisition of HeartWare International, Inc. (HTWR) – a global medical device manufacturer dedicated to serve patients with advanced heart failure -- in time with management’s expectation. ( Read More)

Pfizer to Acquire Rights to AstraZeneca's Antibiotics Business

Pfizer Inc. (PFE) announced that it has entered into an agreement to acquire the rights to AstraZeneca plc’s (AZN) late-stage small-molecule anti-infectives business, primarily in the ex-U.S. markets. ( Read More)

Rite Aid's RediClinic Forms JV with Hackensack Meridian

In line with its persistent endeavors to enhance pharmacy and clinical services, Rite Aid Corporation’s ( RAD) Rediclinic entered into a joint venture with Hackensack Meridian Health, a New Jersey-based healthcare Network. (Read More)

Netflix (NASDAQ:NFLX) to See Robust International Growth Per IHS Report

Netflix, Inc. (NFLX) is apparently poised to gain significantly from its rapid international expansion. (Read More)

Jacobs Wins Pfizer's Chinese Bio-Facility Project Contract

Jacobs Engineering Group Inc. (JEC) recently received a contract from Pfizer Inc. (NYSE:PFE) (PFE) to develop a new state-of-the-art biotechnology centre in China. ( Read More)

Mylan (NASDAQ:MYL) Draws Flak for Over Pricing EpiPen, Stock Down

Controversies concerning massive hikes in drug prices have surfaced yet again and this time, generic drug maker, Mylan N.V. (MYL) is under scrutiny. ( Read More)