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Tuesday, 07/22/2014 4:07:47 PM

Tuesday, July 22, 2014 4:07:47 PM

Post# of 640609
U.S. stocks end higher; Herbalife gain best ever
Chipotle jumps on earnings, Coca-Cola, McDonalds fall on results

NEW YORK (MarketWatch) — The U.S. stock market closed modestly higher, boosted by better-than-expected inflation and housing reports as well as a flood of second-quarter earnings reports.

The S&P 500 (SNC:SPX) ended the session 9.93 points, or 0.5%, higher at 1,983.56, led by stellar results from Chipotle Mexican Grill Inc. The benchmark index closed within a striking distance from its record closing level, reached on July 3.

The Dow Jones Industrial Average (DJI:DJIA) added 61.81 points, or 0.4%, to 17,113.54. The Nasdaq Composite (NASDAQ:COMP) gained 31.31 points, or 0.7%, to 4,456.02.

“Earnings so far are modestly above expectations, though revenues continue to be on a weak side,” said Jim Russell, senior equity strategist at U.S. Bank Wealth Management.

Russell expressed concerns about third and fourth quarter expectations, which he views as high, given modest revenue growth forecasts.

In economic news, consumer prices gained again in June, but the rise was not as broad-based as in the prior month and was driven mainly by the rising cost of gasoline.

Inflation, as measured by CPI, has picked up noticeably in recent months, but Tuesday’s tame reading could ease some of those concerns.

Rising for a third month, sales of existing homes grew in June to the highest annual rate since October.

Six Dow Industrials components reported ahead of the market open. Coca-Cola (NYSE:KO) shares fell 2.9% after the beverage giant reported second-quarter sales that fell short of forecasts, while profit topped estimates.

McDonald’s (NYSE:MCD) shares dropped 1.3% after the fast-food restaurant chain reported earnings that came in below expectations.

Herbalife Ltd. (NYSE:HLF) jumped 23% -- the biggest one-day percentage gain -- after the supposed “death blow” that hedge-fund manager Bill Ackman intended to deliver against the company had the opposite effect. http://www.marketwatch.com/story/us-stocks-futures-climb-ahead-of-inflation-data-apple-2014-07-22

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