Six of 10 S&P 500 main industries gained as financial and raw-materials shares rose more than 0.4%.
The KBW Bank Index advanced 0.9% to the highest level since October 2008. Bank of America Corp. increased 1% to $14.90. Financial companies have exceeded expectations so far in the earnings season more than any of other S&P 500 industry, with reported total profits 8.7% higher than forecast, data compiled by Bloomberg show.
Newmont, the biggest U.S. gold producer, climbed 5.9% to $30.38. Barrick Gold Corp., the world’s largest gold miner, jumped 7% to $17.70. Bullion futures rose above $1,300 an ounce in New York for the biggest gain in more than a year as speculation the Fed will maintain stimulus spurred demand for the metal.
Hasbro Inc. added 3.2% to $46.82 as higher sales in its games unit offset quarterly results that trailed estimates. The world’s second-largest toymaker said sales of games such as “Monopoly” and “Magic: The Gathering” rose 19% to $255.4 million in the second quarter.
Federal-Mogul Corp. surged 30% to $13.85, the highest 15 months. The auto-parts maker controlled by investor Carl Icahn returned to a profit in the second quarter.
McDonald’s fell 2.5%, the most in the Dow, to $97.78. The world’s largest restaurant chain posted second- quarter revenue that trailed analysts’ estimates and said economic weakness would hurt sales for the remainder of 2013.
Yahoo tumbled 3.9% to $27.98. The company will buy back $1.16 billion of shares held by Third Point LLC, leaving the fund with about 20 million shares, or less than a 2% stake. Loeb, who runs the fund, is leaving the board along with two other directors, Harry Wilson and Michael Wolf, added last year to end a proxy fight.
The S&P Supercomposite Homebuilding Index slumped 2% as all 11 members retreated. D.R. Horton declined 2.1% to $21.60. Lennar Corp. fell 2.1% to $34.79. PulteGroup Inc. slid 1.5% to $19.08.
Gannett Co. dropped 2.6% to $25.68. The publisher of USA Today said second-quarter sales slipped less than 1% after print ads continued to slump even as licensing for its TV stations gained 62% from a year earlier.
DreamWorks Animation SKG Inc. fell 4.9% to $23.68. The company may incur a writedown of as much as $50 million on the new movie “Turbo” because of a disappointing opening at the box office, James Marsh, a Piper Jaffray analyst in New York, wrote in a note to clients.
Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.