U.S. stocks end the day higher on a positive durable goods report and comments from New York Fed President William Dudley that a September rate hike seems less compelling. Shartia Brantley reports.
Strong economic data boosted U.S. stocks as new speculation about the timing of an interest rate hike emerges. Durable goods orders rose two percent in July, lending support to the idea of a September rate increase. But New York Fed President William Dudley said, a rate hike seemed less likely next month given the recent global market turmoil. And investors should brace for more market turbulence, says BNY Mellon's Leo Grohowski: (SOUNDBITE) LEO GROHOWSKI, CHIEF INVESTMENT OFFICER, BNY MELLON WEALTH MANAGEMENT (ENGLISH) SAYING: "For investors this is going to mark the end of an era of low volatility. We've had a multi-year period of very low volatility, whether you measure that by the VIX, by one or two percent daily moves. And, I think, we have entered a period of higher volatility." Meanwhile, Schlumberger agreed to buy oilfield equipment maker Cameron International in a deal valued at 14.8 billion dollars. Cameron shares soared, while Schlumberger shares fell. And two apparel retailers - Abercrombie & Fitch and Express - got a boost after impressive quarterly results. Abercrombie and Fitch posted higher profits after successful turn around efforts, and Express tripled its profit due to an improved product line and fewer promotions. European stocks sank as investors continue to worry about the state of China's economy.