The main indexes of the New York Stock Exchange ended today’s trading session on green territory amid optimism about the US-China trade talks and the agreement between Donald Trump and the US Congress to avoid a new paralysis of the federal government.
The blue-chip index Dow Jones Industrial Average added 343.74 points to its value and ended at 25,396.85 points. The broader benchmark S&P 500 gained 1.21% to 2,742.47 points. The technology index Nasdaq Composite rose by 100.93 points, or 1.38%, to 7,408.83 points.
The shares of big banks gained broadly. The SPDR S&P Bank ETF (KBE) jumped by 1.2%.
On Monday night, the lawmakers in the United States made a preliminary deal to avoid a new government paralysis, raising hopes that the US Congress could pass a budget bill before the deadline on Friday, as President Donald Trump signs the measure.
The officials said the deal would provide 1.4 billion USD to build a 55-mile (88.5km) fence along the border with Mexico. This is far less than the 5.7 billion USD, initially requested by Donald Trump. The agreed funding will pay the construction of a fence by only a quarter of the length previously requested by the White House.
Meanwhile, earlier today, Donald Trump hinted for extension of the temporary trade truce with China, saying that he was willing to extend the period if there is significant progress in the talks. He noted that the United States has a large team in China that seeks to reach an agreement.
However, Donald Trump confirmed that there is no planned meeting with Chinese President Xi Jinping until the beginning of March.
In the bond markets, the yields on 10-year and 20-year US government bonds rose to 2.681% and 3.017% respectively.
In the currency markets, the US dollar index reported a decline of 0.38% to 96.69 points. The Euro and the British pound appreciated against the US dollar by 0.51% and 0.37% respectively.
Corporate stocks performance
Best performing during the session were the companies in the banking sector. The shares of Goldman Sachs, Citigroup, and Morgan Stanley rose by at least 2%, while Bank of America and J.P. Morgan Chase reported a growth of 0.9%.
The stocks of the sportswear manufacturer Nike performed well in Dow Jones, adding up more than 1% to its price over the day.
The shares of Caterpillar added 2.90%, while those of 3M Company and DowDuPont rose by 2.82% and 2.62% respectively.
The worst performers of the session were Walt Disney Company, which fell by 0.22%, while McDonald’s Corporation declined by 0.17%.
The top performers on the S&P 500 were Brighthouse Financial Inc which rose 13.95%, Coty Inc (+12.53%) and Pacific Gas & Electric Co (+7.68%).
Shares of major tech companies like Amazon, Netflix, and Alphabet all rose more than 2%. Apple’s stock also gained 0.86%.
Corporate earnings reports
TripAdvisor Inc reported fourth-quarter net income of 7 million USD, after reporting a loss in the same period a year earlier. On a per-share basis, the company said it had net income of 0.05 USD with earnings, adjusted for one-time gains and costs, came to 0.27 USD per share. The travel website operator posted revenue of 346 million USD in the period, which topped Wall Street forecasts. For the year, the company reported net income of 113 million USD, or 0.81 USD per share, swinging to a profit in the period. Revenue was reported as 1.62 billion USD.
German industrial conglomerate ThyssenKrupp on Tuesday confirmed its earnings forecasts for the full year after increasing profits in its first quarter, while announcing a January 2020 vote on its split into two separate firms. Net profit at the group rose by 69% between October and December, to 136 million EUR (153 million USD). The revenues at the steelmaker, whose product range stretches from submarines to elevators and car parts, edged two percent higher to reach 9.7 billion EUR. Meanwhile adjusted operating profit fell by 26%, to 333 million EUR.