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4:26pm ET, 7/23/2019 - Close Update: Major Market Indexes Climb as Trade Talk Hopes Bubble Up in Investors
Stocks advanced Tuesday after reports that US officials are headed to China next week to resume trade talks with negotiators for the world's second-largest economy.

The trade-sensitive materials and industrials sectors were the biggest winners in the S&P 500, climbing 2% and 1.2% and helping push the overall index 0.7% higher. The Dow Jones Industrial Average rose 0.7% while the Nasdaq Composite Index gained 0.6%.

The trade get-together in China will come about a month after a meeting between President Donald Trump and Chinese President Jinping Xi at the G-20 summit in Japan.

Meanwhile, investors were also focused on earnings news as the parade of companies reporting results continues to hit the market. Coca-Cola (KO) was a notable earnings winner as the beverage giant beat Wall Street expectations with its adjusted EPS and revenue and it raised its organic revenue guidance to 5% from 4%. Coca-Cola surged 6%, boosting the Dow and the S&P 500.

Utilities, seen as a haven investment, were the only group to slip on Tuesday in the S&P 500, falling 0.6%.

The earnings calendar stays heavy Wednesday, with corporate giants United Parcel Service (UPS) and Facebook (FB) among the companies reporting.

US MARKETS

Dow Jones Industrial Average was up 177.29 points (+0.65%) to 27,349.19

S&P 500 was up 20.44 points (+0.68%) to 3,005.47

Nasdaq Composite Index was up 47.27 points (+0.58%) to 8,251.40

GLOBAL SENTIMENT

FTSE 100 was up 41.93 points (+0.56%) to 7,556.86

DAX was up 201.34 points (+1.64%) to 12,490.74

CAC 40 was up 51.14 points (+0.92%) to 5,618.16

Nikkei 225 was up 204.09 points (+0.95%) 21,620.88

Hang Seng Index was up 95.22 points (+0.34%) to 28,466.48 Shanghai Composite was up 12.97 points (+0.45%) to 2,899.94

UPSIDE MOVERS

(+) HAS (+10%) Q2 adjusted profit, revenue beat estimates

(+) SHW (+7.8%) Reports Q2 adjusted EPS ahead of Street consensus

(+) SWK (+7.2%) Posts adjusted EPS ahead of Street view

DOWNSIDE MOVERS

(-) ZION (-5.3%) Reports Q2 EPS below consensus

(-) TESS (-8.2%) Quarterly results miss Wall Street expectations

(-) ACAD (-14%) Reports disappointing trial results for schizophrenia treatment

3:46pm ET, 7/23/2019 - Stocks Poised to Close Higher as Trade Talk Reports Boost Market
Stocks were indicated to close higher Tuesday after reports that US officials are headed to China next week to resume trade talks with negotiators for the world's second-largest economy.

The trade-sensitive materials and industrials sectors were the biggest winners in the S&P 500, climbing 1.9% and 1.2% in late trading, respectively. The S&P 500 and the Dow Jones Industrial Average were each 0.7% higher. The Nasdaq Composite Index was up 0.5%.

1:25pm ET, 7/23/2019 - Mid-Day Report: US Stocks Rise as Earnings Keep Markets at Close to Elevated Levels With Fed Set to Cut Rates
US stocks rose as quarterly earnings continued to underpin the market, with The Coca-Cola Company (KO) and Hasbro (HAS) doing the heavy lifting on Tuesday as the Federal Reserve remains all but certain to cut interest rates next week.

The Dow Jones Industrial Average (DJIA) was higher intraday, up 57.24 points, or 0.21%, along with the S&P 500 Index, which rose 0.27% and NASDAQ up 0.08%. Materials stocks were the top-performing in the market, up about 1.5%, with financials and industrials treading close behind after mid-day.

The Coca-Cola Company (KO) ramped up its organic revenue growth guidance on Tuesday as it posted better-than-expected results for the second quarter that were supported by an expansion in concentrate sales and rising demand for its products in North America. Shares jumped 6% intraday, the third-best performer in the S&P 500 Index.

The top gainer on both the S&P 500 and NASDAQ indexes was Hasbro, which reported second-quarter adjusted profit beat the Capital IQ estimate. Shares were up almost 9% intraday. United Technologies (UTX) shares also rose, as the company raised its outlook for the full year after reporting second-quarter results that came in ahead of Wall Street's projections, with sales driven by a surge in aerospace systems.

The dollar jumped to its highest level in more than a month after it emerged that President Donald Trump and US lawmakers agreed on a two-year deal to lift the boundaries of government borrowing. Gold fell $4.90 per ounce and crude futures drifted marginally lower, with the UK still attempting to release a British-flag carrying tanker that was seized by Iran on Friday last week.

The British pound weakened slightly as former Foreign Secretary Boris Johnson won the ruling Conservative Party's leadership contest, setting the stage for his premiership when the Queen will ask him to form a new government later this week. Johnson is committed to a no-deal, "do-or-die" Brexit by Oct. 31, the deadline for the country to leave the European Union, the world's largest trading bloc.

The US 10-year bond yields rose by 1.7 basis points to 2.06% intraday. According to the CME Group's Fed Watch Tool, the market continues to price in a 100% probability of an interest-rate by the Federal Reserve next week. Rates have been higher since Fed Chair Jerome Powell signaled increasing rates to "sustain" the US

economic expansion given the risks on the horizon relating to the US-China trade conflict and slowing global economic growth.

Earlier on Monday, the International Monetary Fund lowered global growth forecasts to 3.2% in 2019, down from its April estimate of 3.3%. Next year, the IMF sees growth at 3.5%, also scaled back by 10 basis points.

Crude futures -- West Texas Intermediate -- were down $0.18 to $56.04 per barrel. Natural gas was up $0.01 to $2.32 per 1 million BTU. Gold was down $6.30 to $1,420.60 an ounce, silver was up $0.05 to $16.46 an ounce. Copper was down $0.02 to $2.70 per pound.

Among energy ETFs, the United States Oil Fund was down 0.51% at $11.62. The United States Natural Gas Fund was down 0.15% to $19.86. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 1.10% to 27.82 while SPDR Gold Shares was down 0.53% $133.74. The iShares Silver Trust was up 0.01% to $15.35.

Here's where the markets stood at mid-day Tuesday:

US MARKETS

NYSE Composite Index was up 41.62 points (+0.32%) to 13,151.39

Dow Jones Industrial Index was up 57.24 points (+0.21%) to 27,229.24

S&P 500 was up 8.07 points (+0.27%) to 2,993.25

Nasdaq Composite Index was up 6.38 points (+0.08%) to 8,210.51

GLOBAL SENTIMENT

FTSE 100 was up 41.93 points (+0.56%) to 7,556.86

DAX was up 201.34 points (+1.64%) to 12,490.74

CAC 40 was up 51.14 points (+0.92%) to 5,618.16

HSI was up 95.22 points (+0.34%) to 28,466.48

Shanghai Composite was up 12.97 points (+0.45%) to 2,899.94

NYSE SECTOR INDICES

NYSE Energy Sector Index was up 14.70 points (+0.15%) to 10,170.38

NYSE Financial Sector Index was up 44.63 points (+0.55%) to 8,159.62

NYSE Healthcare Sector Index was up 15.73 points (+0.10%) to 16,283.90

UPSIDE MOVERS

(+) TRPX (+40.43%) plans to merge with Canada's Destiny Biosciences in cannabis stock deal

(+) CHMA (+28.39%) Mycapssa study meets primary endpoint

DOWNSIDE MOVERS

(-) MRNS (-68.59%) phase 2 trials shows ganaxolone 'well-tolerated' in treating postpartum depression

(-) LKSD (-35.92%) and LSC Communications terminate merger agreement

(-) TTS (-20.61%) second-quarter earnings and revenue miss estimates

12:53pm ET, 7/23/2019 - European Equity Benchmarks Close Higher, Led by Automotive, Bank Stocks; Boris Johnson Elected UK PM
The broad-based major European indices closed higher in Tuesday trading, led by rising automotive and bank stocks.

In economic news, Boris Johnson has been elected the new leader of the UK's Conservative party, and will thus become the next UK prime minister July 24. Jeremy Hunt was the runner up with just 46,656 votes to Johnson's 92,153.

"Many congratulations to Boris Johnson," Carolyn Fairbairn, director general of the Confederation of British Industry (CBI), said in a statement. "British business shares your optimism for the UK. Let's work together to get our economy back on track and working for communities everywhere.

Fairbairn said that UK business needs three things in the first 100 days of Johnson's tenure: "a Brexit deal that unlocks confidence; clear signals the UK is open for business; and a truly pro-enterprise vision for our country."

She added that "on Brexit, the new prime minister must not underestimate the benefits of a good deal. It will unlock new investment and confidence in factories and boardrooms across the country. Business will back you across Europe to help get there."

Johnson has repeatedly said that he is willing to allow the UK to leave the EU without a deal.

Meanwhile, the CBI reported in its most recent quarterly Industrial Trends Survey that manufacturing activity dropped in the quarter to July, but that firms expect a slight recovery in the next few months. The survey of 291 manufacturing firms showed that optimism fell at its fastest pace since July 2016, and investment spending plans weakened again.

New orders declined sharply in the quarter to July as both new domestic and new export orders fell at their fastest respective paces since the financial crisis. Manufacturers continued to grow their stocks of raw materials and finished goods, but at a slower pace than in the three months to April, when stocks were increased at the fastest pace on record.

"As the tailwind from stockpiling weakens, clouds are gathering above the manufacturing sector. It's being hit by the double-blow of Brexit uncertainty and slower global growth," said Rain Newton-Smith, CBI's chief economist. "With orders, employment, investment, output and business optimism all deteriorating among manufacturers, it's crucial for the new Prime Minister to secure a Brexit deal ahead of the October deadline."

The European Central Bank (ECB) reported that credit standards for loans to enterprises tightened in Q2 with a net percentage of 5%, according to the July bank lending survey (BLS), while banks had expected a slight net easing in the previous survey round. Credit standards for loans to households for house purchases remained unchanged, and credit standards for consumer credit and other lending to households continued to tighten with a net percentage of 4%, up from 2% in the previous round.

The ECB said lower risk tolerance, and heightened risk perceptions for loans to enterprises, along with higher cost of funds and balance sheet constraints, contributed to the tightening of credit standards across loan categories. It also said competitive pressures continued to contribute to an easing of credit standards. For Q3 of 2019, banks expect credit standards to remain unchanged for loans to enterprises and housing loans, and to ease for consumer credit.

And in Germany, banks tightened their credit standards for loans to enterprises for the second time in a row while easing them somewhat for loans to households for house purchases, according to Deutsche Bundesbank's most recent lending survey. Banks' overall credit terms and conditions were tightened in both credit segments, particularly by increasing margins on riskier loans. Household demand for loans for house purchases grew more sharply than expected, mainly due to the low general interest rate level.

In equities, turnaround firm Melrose Industries, and health care company NMC Health helped lead the FTSE into positive territory in London rising 5.1% and 4% respectively, followed by packaging companies Smurfit Kappa Group, and DS Smith, which were up 3.7% and 3.4%. Chemicals company Johnson Matthey, and cruise line operator Carnival increased 3.1% and 2.9%, while bank Barclays, and mining company Evraz closed 2.2% and 2.1% higher respectively.

In Frankfurt, automotive stocks led the DAX sharply higher as tire maker Continental climbed 6.3%, while automakers Daimler, BMW, and Volkswagen rose 4.4%, 3.9%, and 3.8% respectively. Chemicals company BASF, and semiconductor company Infineon were up 3.9% and 3.7%, while industrial group Thyssenkrupp, and Deutsche Bank closed 3.1% and 3% higher respectively.

And in Paris, automotive and bank stocks buoyed the CAC as automakers Peugeot and Renault climbed 3.7% and 2.5% respectively, while tire maker Michelin gained 1.8%. Banks Societe Generale, BNP Paribas, Credit Agricole, rose 3.1%, 2.2%, and 1.9% respectively, while steel and mining company ArcelorMittal led all stocks, closing 4.5% higher.

The FTSE gained 0.56%, the DAX climbed 1.64%, and the CAC-40 rose 0.92%.

12:31pm ET, 7/23/2019 - Middle East Stocks Mixed, Saudi Shares Slump on Results, Weaker Oil
Middle East shares were mixed, with Saudi stocks dropping on disappointing earnings and lower oil prices.

Oil fell as nerves eased over the possibility of escalated tensions in the Middle East and worries of weaker demand took over after the IMF lowered global growth forecasts.

Meanwhile, Dubai rose to the highest since mid-November.

In company news, Emaar Properties inked a deal with Beijing Daxing International Airport for an $11 billion project that includes residential and leisure facilities.

Aldar properties rose to the the highest level since January 2018 after the company raised annual profit guidance by 50% for the next three to four years.

Emirates Telecommunications Group said Q2 profit edged up.

National Bank Of Ras Al Khaimah said Q2 profit jumped 25.7%.

Saudi Arabian Mining Company (Ma'aden) swung to a Q2 loss due to lower average realized prices of all products except gold.

National Shipping Company of Saudi Arabia (Bahri) said Q2 profit dropped 75%.

Saudi Arabia's main index slumped 1.3% to 8,796 points, Abu Dhabi added 0.9% to 5,345 points, Dubai jumped 2.1% to 2,833 points, Qatar dipped 0.3% to 10,511 points, Bahrain eased 0.3% to 1,522 points and Kuwait fell 0.3% to 6,640 points. Egypt and Oman were closed for holidays.