By Chris Matthews and William Watts, MarketWatch
Expectations for central bank easing help underpin equities,
analysts say
Stocks extended gains Tuesday afternoon after reports said talks
between U.S. and Chinese trade negotiators would begin next
week.
Talks between China and the U.S. would start Monday as U.S.
negotiators headed to China, Bloomberg reported
(https://www.bloomberg.com/news/articles/2019-07-22/asian-stocks-set-for-modest-gains-oil-advances-markets-wrap?srnd=premium).
The U.S. delegation will be led by Trade Representative Robert
Lighthizer and will be in China through Wednesday.
Earlier the Hong Kong based South China Morning Post
(http://www.marketwatch.com/story/us-trade-negotiators-likely-to-visit-china-next-week-report-2019-07-23)also
reported that U.S. trade negotiators were likely to visit China
next week.
Better-than-expected earnings from Dow Jones Industrial Average
components, Coca-Cola and United Technologies reported before the
market opened also helped stocks rise for a second day.
How are the major benchmarks faring?
The Dow Jones Industrial Average was up 154 points at 27,325,
while the S&P 500 index advanced 17 points to 3,001. The Nasdaq
Composite Index was up 29 points to 8,234.
Equity benchmarks edged higher Monday. The Dow eked out a 17.7
point gain, a rise of less than 0.1%, to end at 27,171.90, while
the S&P 500 rose 8.42 points, or 0.3%, to close at 2,985.03.
The Nasdaq Composite rallied 57.65 points, or 0.7%, to
8,204.14.
But including Tuesday, the DJIA has not had a 1% move in either
direction for 24 consecutive trading days, the longest such streak
since August-October 2018 when it went 30 days without a 1% move.
Similarly, the S&P 500 has not had a 1% move in either
direction for 31 trading days, the longest such streak since
June-October 2018 when it went 74 days without a 1% move.
What's driving the market?
Stocks traded mostly higher Tuesday afternoon, with Wall Street
building on the previous session's modest gains, as investors
digested a batch of good earnings reports, signs of progress on
trade talks with China, and a proposed deal to lift the U.S. debt
ceiling and avoid a government shutdown.
More than 18% of S&P 500 companies have posted quarterly
numbers this earnings season. Of those companies more than 78% have
reported better-than-expected profits, according to FactSet data.
Those companies have also seen their earnings grow by an aggregate
of 3.6%.
Meanwhile, global stocks appeared to receive support from
expectations that the European Central Bank (ECB) and the Federal
Reserve could soon cut interest rates. The ECB is seen cutting
rates by 10 basis points on Thursday, with the U.S. central bank
expected to lower rates by 25 basis points at the end of the
month.
Visa , Chipotle (CMG), and Snap (SNAP) are due to report
earnings after the market close Tuesday.
Earnings reporting season rolls on with companies including
Amazon.com , Alphabet (GOOGL), Caterpillar (CAT), McDonald's (MCD)
and (BA) still to report this week.
Late Monday, President Donald Trump and congressional leaders
announced a budget deal
(http://www.marketwatch.com/story/trump-says-compromise-deal-on-budget-debt-ceiling-reached-2019-07-22)
that would avoid the possibility of a government shutdown or
federal default.
But on the economic data front, existing home sales
(http://www.marketwatch.com/story/existing-home-sales-dip-17-housing-market-struggles-despite-cheaper-mortgages-2019-07-23)
fell 1.7% despite lower mortgages rates.
Read:Brace yourselves for Britain's new prime minister -- here's
how markets may react
(http://www.marketwatch.com/story/brace-yourselves-for-britains-new-prime-minister---heres-how-markets-will-react-2019-07-22)
Which stocks are in focus?
Dow-members Coca-Cola Co.(KO) saw its shares climb to a record
after reporting better-than-expected earnings and raising its
revenue forecast.
United Technologies Corp.(UTX), also a Dow component, beat
earnings forecasts also and raised its full year outlook for
earnings and revenue.
Apple Inc. (AAPL) shares rose, following a report in the Wall
Street Journal that it is in "advanced talks' to buy Intel Corp.'s
smartphone-modem chip business, valued at $1 billion. Apple stock
rose 2.3% Monday, the best performing stock in the Dow
(http://www.marketwatch.com/story/stock-futures-point-to-higher-start-ahead-of-earnings-deluge-2019-07-22).
Intel shares advanced 0.9%.
Shares of Biogen Inc.(BIIB) were also on the rise after the
company topped earnings forecasts and raised its outlook
(http://www.marketwatch.com/story/biogens-stock-jumps-after-big-earnings-beat-raised-outlook-2019-07-23).
Lockhead Martin Corp. (LMT) stock fell, even after the aerospace
and defense manufacturer surpassed analyst expectations for
second-quarter profits and sales
(http://www.marketwatch.com/story/lockheed-martin-shares-climb-premarket-after-earnings-beat-2019-07-23).
Shares of Snap Inc. (SNAP) were up, after Stifel analyst John
Egbert upgraded the stock
(http://www.marketwatch.com/story/snap-stock-gains-after-stifel-upgrades-ahead-of-earnings-2019-07-23)
from buy to hold, ahead of the social media company's
second-quarter earnings results, due after the close of trade
Tuesday.
How are other markets trading?
The 10-year U.S. Treasury note was little changed around
2.05%.
Earlier West Texas Intermediate crude for September delivery
fell 19 cents, or 0.3%, on the New York Mercantile Exchange to
$56.03 a barrel. September Brent , the global benchmark, was off 28
cents, or 0.4%, to $62.98 a barrel on ICE Futures Europe. News of
Iran's seizing of tankers in the Gulf was outweighed by a weak
outlook for demand.
In Asia overnight Monday, stocks closed mostly higher, with
China's CSI 300 index rising 0.2%, Japan's Nikkei 225 adding 1% and
Hong Kong's Hang Seng index climbing 0.3%. European stocks rallied
1.1%, according to the Stoxx Europe .
(END) Dow Jones Newswires
July 23, 2019 14:23 ET (18:23 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Snap (NYSE:SNAP)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Snap (NYSE:SNAP)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024