The Dow Jones index managed to end the trading session on a green territory, adding 100 points due to investors’ hopes for reaching a trade deal during the US-China talks at the G20 summit.
The session turned out to be volatile for the main US indices, and in the early hours, Dow Jones saw a decline of nearly 200 points.
The blue-chip index started growing after the White House’s economic adviser Larry Kudlow said that Washington had held numerous talks with the Chinese government on any questions ahead of the meeting between Donald Trump and Xi Jinping in Buenos Aires during the weekend.
The global economy for the next year depends on what will happen in the next few weeks. The geopolitics events, like the US-China trade war, Brexit and Italian budget are the main issues dictating the market trends.
Larry Kudlow’s comments came shortly after Donald Trump’s statement that he will likely increase the duty of Chinese imports to 25%, which will also affect imports of Asian equipment. Against this background, Apple’s stock price dropped by 0.6%.
The blue-chip index Dow Jones Industrial Average added 100.52 points, or 0.41%, to its value, ending the session at 24,740.76 points. The broader S&P 500 dropped 0.05% to 7,078.57 points, while the technology index Nasdaq Composite grew by 0.29% to 2,681.08 points.
In the bond markets, the yields on 10-year US Treasuries declined to 3.057%, while yields on 30-year bonds declined to 3.315%.
In currency markets, the US dollar index increased by 0.30% to 97.37 points. The euro and the pound depreciated against the dollar by 0.28% and 0.77% respectively.
The stock of General Motors fell by 2.7% after Donald Trump warned that he was considering to stop state subsidies for a concern after plans of the company to cut production in North America and close thousands of jobs. On Monday, the car company announced they intend to cut 15% of its employees to save 6 billion USD by the end of 2020.
White House spokeswoman Sarah Sanders told reporters that the president is looking at the various options for removing subsidies.
The US President now accused Fed, for the recent stock market crashes and GM’s announcement of the closure of five plants in North America this week, coupled with a cut of 14,000 in the coming year.
The stocks of social media giant Facebook closed with a decrease of 1% against revelation of secret documents that the company’s engineer warned in 2014 about a potentially huge data issue involving Russia.
During a hearing on Tuesday, the UK lawmaker, Damian Collins, asked Facebook’s policy chief, Richard Allan, whether the potential data breach was reported. Allan did not answer. Following the hearing, Facebook said it investigated the issue and “found no evidence of specific Russian activity”.
Salesforce shares rose in extended trading on Tuesday after the cloud software company reported fiscal third-quarter results that beat analysts’ estimates. The stocks of the company rose by 7.4% due to strong Q3 2018 earnings statements, while the appreciation for the year reached 25%.
The developer of cloud-based SaaS solution for digital asset management Destiny Media Technologies reported a revenue increase of 4.7% in Q3 2018 to 3.606 million USD.
The revenue of Salesforce.com in Q3 2018 jumped by 26% YoY to 3.39 billion USD, driven by expansion in the Sales Cloud and Service Cloud segments.
The company’s Q3 2018 operating cash flow amounted to 143 million USD, up by 14% YoY. Even after blowing past 10 billion USD in annual revenue, Salesforce continues to grow well above 20% per year by providing a broader suite of products to sales, marketing and services departments at companies that are moving from traditional software to the cloud.
For the fourth quarter, Salesforce said it expects revenue of 3.55 billion USD to 3.56 billion USD, beating the 3.52 billion USD average analyst estimate. However, the earnings forecast of 0.54 USD to 0.55 USD per share, excluding certain items, trailed the average estimate of 0.57 USD.