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Stocks recover with refocus on earnings

Monday, August 04, 2014 - 02:19

Summary: Wall Street had its best day in two weeks, partly recovering from its worst week in more than two years. AIG reports after the close. Michael Kors cut down on expansion concerns. Disney breaks August record. Conway G. Gittens reports.

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Wall Street got back into the swing of things following the stock market's worst week in more than two years. It was the biggest rally in two weeks as investors refocus on an earnings season that is going better than expected. That continued after the close, American International Group beat expectations with a 12-1/2 percent gain in earnings. Fashion and merchandising company Kors out with results earlier in the day. Sales topped forecast and profits did as well, but the company's expansion plans causing investors to take some money off the table. Kors was the worst performing stock in the S&P 500. Good news for Disney heading into Tuesday's results. "Guardians of the Galaxy", the latest flick from Disney-Marvel Studios, broke box office records for an August debut, taking in $94 million in domestic sales. What makes this an even more heroic feat - these superheros did better in ticket sales than recent sequels from Spider-Man and X-Men, according to Box Office Mojo.com. Staying in Hollywood, Sandra Bullock is now Tinseltown's highest paid actress. Last year's hit "Gravity" helped lift her to the top with estimated earnings of $51 million, according to the Forbes List. Big talk in Washington about economic ties to Africa. The White House is hosting a three-day summit with African politicians and business leaders. Some $1 billion in business deals tied to the continent are expected to be announced. First, an opening call for courage from U.S. Secretary of State John Kerry. SOUNDBITE: U.S. SECRETARY OF STATE JOHN KERRY (ENGLISH) SAYING: "Fighting corruption lifts more than a country's balance sheet. Transparency and accountability attract greater investment. Transparency and accountability create a more competitive marketplace, one where ideas and products are judged by the market and by their merits and not by a back room deal or by a bribe. The market always works better with transparency and with the sunshine of accountability." In Europe, little sunshine for the markets with focus on the banks. London's HSBC warns rising regulatory burdens are hurting the banking business, while in Portugal, a $2.9 billion rescue of trouble lender Banco Espirito Santo.

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Stocks recover with refocus on earnings

Monday, August 04, 2014 - 02:19