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Gap warns; Stocks hit another record

Thursday, November 20, 2014 - 02:05

Gap lowered its guidance when it reported earnings after the closing bell. The Dow and S&P 500 hit record highs on strong economic data. Bobbi Rebell reports.

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Gap lowered its outlook after the closing bell. The company behind Banana Republic and Old Navy also missed revenue forecasts. That overshadowed their earnings beat - and sending shares lower in the after hours session. But in the regular trading session Thursday- stocks hitting it yet again- record highs for the Dow and S&P 500. The nasdaq also having a solid showing. Strong U.S. economic data offset the weak manufacturing numbers from China and the Eurozone, and that pushed stocks higher. Factories in the Mid-Atlantic region are pumping out goods at a blistering pace this month. And last month, home resales rose to their highest level in more than a year and consumer prices were flat. That shows there's no urgency for the Fed to raise interest rates- says S&P Capital IQ's Sam Stovall: SOUNDBITE: SAM STOVALL, U.S. EQUITY STRATEGIST, S&P CAPITAL IQ (ENGLISH) SAYING: "What we're finding is that year over year, we're still in that one-and-a-half percent area, so it's below the Fed's target." Retailers Best Buy and Dollar Tree zoomed higher on strong earnings. Best Buy managed to grow revenue in a weak consumer electronics market, reversing two quarters of declines. Profit nearly doubled. Dollar Tree hiked its full-year sales forecast after seeing a big jump in comparable store sales in the latest quarter .... the strongest growth in three years. First it sold its shares in an IPO. Now Alibaba wants to sell more wares overseas. The Chinese e-commerce giant says it will set up an international version of its popular Taobao marketplace. That news sparked more people to buy its shares. Score a K-O for Yahoo. It'll knock Google out as the default search engine on Mozilla's Firefox browser come next month. But Google remains the heavyweight. Its Chrome browser has more than triple the share of Firefox in the U.S. browser market. In Europe, that weak euro zone manufacturing data stoked concerns about growth, and that sent stocks lower;