Wall Street turns higher, Dow Jones retrieves 83-point loss in late trade

ecPulse
2014-07-28 20:24PM UTC

U.S. stocks recovered in afternoon trading, with the Dow Jones Industrial Average reversing an 83-point loss earlier in the session.

Traders reported light volumes, with some investors holding back on laying bets ahead of a slew of economic data due later in the week. Lower trading activity sometimes amplifies the impact of individual trades, and investors have shown a consistent willingness to buy into market pullbacks.

Major indexes stumbled earlier after a reading on pending home sales came in weaker than expected, the latest sign that the U.S. housing market remains weak despite low interest rates.

The National Association of Realtors said its index of pending home sales—reflecting purchases under contract—fell 1.1% to 102.7 in June, ending three months of gains. Economists surveyed by Bloomberg had expected a 0.5% rise.

The report is one of many economic updates expected to capture investors` attention this week. A read on second-quarter gross domestic product is due Wednesday, while closely watched monthly jobs report for July is due Friday.

The Federal Reserve will begin its two-day monetary policy meeting tomorrow, and investors seem unlikely to make big moves ahead of the central bank`s decision.

-The Dow Jones Industrial Average gained 0.13% or 22.02 points to 16982.59

-The S&P 500 index gained 0.03% or 0.55 points to 1978.90

-The NASDAQ Composite Index fell 0.10% or 4.65 points to 4444.91

Financial stocks turned higher this afternoon, rising 0.05%. Utilities sector led gains in the S&P 500 by 1.37%.

Lloyds Banking Group was little changed in late Monday trading after earlier today agreeing to pay $370.5 million to settle rate manipulation allegations with U.K. and U.S. authorities.

Lloyds also signed a two-year agreement with the Justice Department that will have wire fraud charges dropped if it meets certain conditions. Shares were down 0.1% at $5.17 each shortly before the closing bell, matching its best level of the day. The stock has traded in a 52-week range of $4.10 to $5.76 a share, rising 22.1% over the past 12 months.

Shares of Family Dollar Stores Inc. climbed 24% after news that the discount chain will be acquired by Dollar Tree. Inc. in a cash-and-stock deal that values the struggling retailer at about $8.5 billion. Shares of Dollar Tree advanced 3.1%.

 Shares of Zillow gained 1.3% after the provider of online real-estate information reached a deal to buy rival Trulia in a stock-for-stock deal valued at about $2.6 billion. Trulia shares rose 17.1%.

Shares of Tyson Foods Inc. advanced 2.4% after the food giant said fiscal third-quarter profit and sales rose on higher prices and volumes. The company also said it was preparing to close its deal to buy Hillshire Brands Co. HSH 0.00% and reached a deal to sell chicken operations in Mexico and Brazil.

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