Shares close higher as profit news drums trade war fear; Tesla gives 11% on Music’s private tweet

US. Shares closed Tuesday Tuesday when investors continued to brush off anxiety over the US-China trade warfare and instead focus on positive corporate earnings.

Nasdaq rose for a sixth consecutive day, the longest winning streak since March, led by Tesla Inc., who spied after a tweet from Chief Executive Elon Musk that he considered a move to take the company privately, followed by confirmation from company.

How did the main benchmarks go?

S & P 500 index

SPX, + 0.28%

increased 8.05 points, or 0.3% to 2.858.45, resulting in a fourth consecutive row of energy and industry sectors. The reference index is only 0.5% below its record close to 2,872.87 reached January 26th.

Nasdaq Composite Index

COMP, + 0.31%

received 23.99 points, or 0.3% to 7.883.66 while Dow Jones Industrial Average

DJIA, + 0.50%

advanced for a third session and added 126.73 points, or 0.5% to 25.628.91.

CBOE-volatility index

VIX, -3.02%

known as Wall Street’s vulnerability index, is close to its lowest levels 2018 at 10.97. The meter, which reflects bullish and bearish bets on the S & P 500 over the next 30 days, tends to fall as stocks increase.

Read: 6 factors to watch when the bull market is running against a stamina

What was the market?

The results for the second quarter so far have been good, with S & P 500 companies reporting 24% performance gains and sales gains of 9.8%, according to FactSet. Strong earnings have helped to strengthen the belief that stable US economic growth continues to support the company’s bottom lines and keep the shares floating.

Trade concerns have been put on the baker for now even when China shot another verbal volley against the United States via one of its newspapers. A late Monday editorial in China’s Daily Newspaper declared that the country will not give out to “obtain extortion”. China threatened to place tariffs of $ 60 billion US goods last week if the White House continues with its plans to introduce new charges on Chinese Products.

On the economic data front, the latest report from the Ministry of Labor showed that there were 6.66 million jobs at the end of June, broken down from May and the third highest in history.

What were market participants saying?

Tony Dwyer, a stock strategist at Canaccord Genuity, said in a report that the market has more potential. “With volatility back to low, S & P 500 near record increases … it’s very much discussed how long the current economic and market cycle can last. We believe in the combination of stable economic background, historically high business and consumer confidence, and better than expected profit growth continues to suggest there is a long way to go, he says.

“The strong earnings period has been the most important factor in raising US stocks,” said Hussein Sayed, marketing director at FXTM. estimates that revenues increased by 24.1% and more than 79% of S & P 500 companies managed to beat profit forecasts, as described as the best win season in recent history.

“But when we get closer to the end of Corporate Communications will focus on returning to trade francs, geopolitics and the upcoming US mid-term elections, he says.

Check out: MarketWatch’s Financial Calendar

What Stocks were In Focus?

Tesla Shares

TSLA, + 10.99%

increased 11% to close at $ 379.57. Musk said he was thinking of taking the car manufacturer privately at $ 420 per share and even stated that he had funded himself, although some Tesla viewers questioned the truth about that claim.

Shares of Zillow Group Inc.

Z, -14.77%

ZG, ] -16.27%

decreased 15% after the company’s late Monday published results and announced the acquisition of a mortgage loan.

Marriott International Inc. shares

MAR, -3.75%

decreased by 3.8% after the hotel chain’s revenue from the second quarter had broken expectations.

Etsy Inc.

ETSY, + 3.32%

trimmed past profits but still added 3.3% after it increased its revenue.

Office Depot Inc.

ODP, + 13.49%

reported earnings and sales that were better than expected, with results that contributed to shipment of shares up 14%.

Discovery Inc. shares


fell by 5.1% after the company reported earnings for the second quarter which missed expectations but revenue struck, boosted by a doubling in US networks.

Dean Foods Co., Ltd.

DF, -15.10%

dropped 15% after the food and beverage company hit the second quarter results and sales expectations, but lowered its full-year earnings prospects.

What did other markets work?

USA’s benchmark West Texas Intermediate futures

CLU8, + 0.14%

came from previous heights to post a fractionally close. Energy Information Administration lowered its forecast of US crude oil production for both 2018 and 2019.

Gold futures

GCZ8, + 0.26%

departed marginally higher, while the US Dollar Index

DXY, -0.14%


The global strength of shares was not lost in Europe

SXXP, + 0.47%

where Stoxx Europe 600 entered a profit of 0.6%. Asian stocks were in rally mode with a sharp return for Shanghai Composite

SHCOMP, -0.63%

which increased 2.7%.

Barbara Kollmeyer contributed to this report.

Provides critical information for the American trading day. Subscribe to MarketWatch’s free need to know newsletters. Sign up here.


(Visited 31 times, 1 visits today)

Leave a Reply