US stocks gain despite Iraq, Ukraine uncertainty

Wall Street contended with rising tensions over Ukraine and Iraq, yet US stocks still finished in the black for the week following a big rally on Friday. The Dow Jones Industrial Average rose 60.56 points (0.37 per cent) to 16,553.93 over the week. The broad-based S&P 500 rose 6.44 (0.33 per cent) to 1,931.59, while the tech-rich Nasdaq Composite Index added 18.26 (0.42 per cent) at 4,370.90.
-'Safe haven'-
The stocks on Friday enjoyed a solid rally that made up for the losses earlier in the week. Some analysts say US equities are well-situated compared with their European counterparts, given the differences in economic outlooks and the particulars of the current hotspots. Markets in Britain, France and Germany all suffered losses last week. ‘The US appears to be more of a safe haven,’ said Jack Ablin, chief investment officer at BMO Private Bank. Economic data remained mostly positive. The ISM purchasing manager index for the service sector gave the highest reading in nine years, pointing to continued momentum in growth. In earnings news, the Walt Disney Company and 21st Century Fox both scored strong quarters helped by their respective summer movie blockbusters Maleficent and the X-Men movie. Fox also called off its campaign to acquire Time Warner after chief Rupert Murdoch concluded the price was too high. Murdoch's company had initially offered some $80 billion in a swash-buckling move. ‘The reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders,’ Murdoch said in a statement. Another deal which appeared to collapse was Sprint's $32 billion offer for T-Mobile, failing in the face of US regulatory opposition. Next week’s economic calendar is relatively light, but includes releases on US retail sales for July and industrial production for July. Retail behemoth Wal-Mart Stores also reports second-quarter earnings, according to AFP.