The Dow and S&P 500 hit record highs after weak economic data dulled prospects of more interest rate hikes this year. Julia Sun reports.
The Dow and S&P 500 hit record highs after weak economic data dulled prospects of more interest rate hikes this year. Data showed consumer prices were unchanged in June. And retail sales fell for a second straight month. That could mean low inflation and weaker economic growth in the second quarter. Earlier this week, the market rose after Federal Reserve Chair Janet Yellen said future rate hikes could be gradual if inflation stays low. Kevin Kelly of Recon Capital: (SOUNDBITE) KEVIN KELLY, CHIEF INVESTMENT OFFICER & MANAGING PARTNER, RECON CAPITAL PARTNERS (english) SAYING: "We are in a lower-interest rates environment, and we are going to be there for longer So, I think people are starting to understand that earnings are worth more than low-interest rate environment. It just has to do with the cost of capital. So, if you are not getting returns on the bond market, you have to go somewhere else to get returns, and those returns are worth more." Three big banks kicked off the earnings season and they were the day's biggest drags. JPMorgan Chase reported a better-than-expected quarterly profit, but gave weak forecast. Shares of Citigroup and Wells Fargo also fell, despite reporting profits that beat analysts' expectations. For the week, U.S. indices were higher. In Europe, stocks closed in the red.