Wall Street headed for its first four-day winning run since January, after a landmark nuclear deal between Tehran and six global powers left sanctions on Iran in place for now, while weaker-than-expected retail sales spurred bets on timing for higher interest rates.
The S&P 500 (INDEXSP:.INX) gained 0.5 percent to 2,110.61 at 3:42 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) rose 0.5 percent to 18,062.86, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) added 0.8 percent to 5,110.13.
Brent and U.S. crude reversed losses which came after the nuclear deal was reached. The deal, which is set to ease sanctions against Tehran and allow a gradual rise in its oil exports, had sent oil prices tumbling.
A report today showed consumer purchases decreased 0.3 percent in June after a 1 percent advance in May that was smaller than previously reported, curbing optimism about the strength of the rebound in spending during the second quarter.
Expectations for weak corporate earnings reports and data showing disappointing June retail sales in the United States, along with a decline in shares of carmakers in Europe, capped equities gains.
MOVERS:
JPMorgan Chase (NYSE:JPM) gained 1.2 percent to $68.93 after the biggest U.S. bank by assets reported a higher-than-expected second-quarter profit as the firm trimmed costs to offset falling trading revenue.
Wells Fargo (NYSE:WFC) gained 1 percent to $57.30, reversing an earlier slump. The San Francisco-based bank reported a profit of $5.72 billion, down slightly from $5.73 billion in the same period of 2014. On a per-share basis, earnings increased to $1.03—matching the estimate from analysts polled by Capital IQ—from $1.01 as the bank’s outstanding share count declined.
In consumer shares, Johnson & Johnson (NYSE:JNJ) fell 0.7 percent to $99.61 as its earnings modestly exceeded analysts forecasts and the company raised its full-year profit view.
Amazon (NASDAQ:AMZN) rose 2.6 percent to $467.53 after UBS upgraded the company's stock to "buy" from "neutral".
Books-A-Million (NASDAQ:BAMM) leaped 19.7 percent to $3.16 after the book retailer reached a buyout deal worth about $21 million with the family of Chairman Clyde B. Anderson, at a higher price than the family’s January proposal.
Micron Technology (NASDAQ:MU) jumped 11.8 percent to $19.65 after sources told Reuters that China's state-backed Tsinghua Unigroup is preparing a $23 billion bid for the U.S. memory chip maker.
GoPro (NASDAQ:GPRO) rose 5.4 percent to $54.91 after Barclays raised its rating on the action camera maker's stock to "overweight" from "equal weight".
Google (NASDAQ:GOOGL) gained 2.7 percent to $586.90. The world’s largest Internet search engine Google has instituted stricter controls on costs because of slowing revenue growth and smaller profit margins, according to The Wall Street Journal.
Spirit Airlines (NASDAQ:SAVE) sank 7.6 percent to $58.72. The airline said poor June weather will hurt its second quarter results, and added that pricing pressure could impact its earnings during the rest of 2015.
Fastenal (NASDAQ:FAST) dropped 3.7 percent to $41.25 after the seller of industrial and construction supplies said second-quarter profit rose 7.6 percent, as demand from customers in oil-related industries stabilized. But revenue fell short of expectations.
OTHER MARKETS:
The pan-European FTSEurofirst 300 index closed up 0.53 percent, at 1,580.34.
COMMODITIES:
Gold for August delivery on Comex fell 0.2 percent to settle at $1,153.50 an ounce on Comex — its fourth session loss in a row.
August crude added 1.6 percent to settle at $53.04 a barrel on the New York Mercantile Exchange. That was the highest close since July 2.