The main indexes of the New York Stock Exchange ended today’s trading session into the green because of optimism about trade talks.
The blue-chip index Dow Jones Industrial Average posted growth of 0.09% to 25,843.21 points, while the S&P 500 rose slightly by 0.01% to 2,793.10 points. The technology index Nasdaq Composite rose by 0.17% to 7,590.52 points.
Meanwhile, among Exchange Traded Funds, SPDR S&P Retail ETF (XRT) gained 0.6%.
Earlier in the day, United States Secretary of State Mike Pompeo commented on the ongoing trade negotiations with Beijing.
“It’s never over till it’s over, but they’ve made a lot of progress, and so I’m very hopeful that in the coming days and weeks, there’ll be a significant announcement”, said Mike Pompeo.
The US investors continue to follow the talks between Washington and Beijing, as they have a major impact on profits in the corporate world.
The yields on 10-year and 20-year US Treasury bonds declined to 2.717% and 3.082%, respectively.
In the currency markets, the dollar index rose by 0.16% to 96.84 points,
Corporate stocks performance
The stocks of General Electric fell by 2% after the company said it predicts a reduction in free cash flow in 2019 amid the continued weakness of its energy unit.
Health care stocks led the sell-off among companies in the S&P 500. UnitedHealth Group slid 4.1%, which was the biggest loss among the 30 stocks in the Dow.
Technology companies and banks also fell. Salesforce.com sank by 3.7% and Charles Schwab lost 2.5%.
Retail giants Target and Kohl’s reported bullish earnings results on early Tuesday, which supported their stocks growth. The shares of Target rose by 4.5%, while those of Kohl’s appreciated by 7.3%. The bullish earnings results of the two retailers supported the sector as a whole, with Walmart appreciating by 0.5%.
AT&T dropped by 2.7% on news the telecom company is reorganizing its WarnerMedia unit, which includes HBO and Warner Bros.
Corporate earnings reports
The fourth quarter sales of the retailer Target surpassed investors’ expectations. Target reported that online sales rose by 31% in the quarter, while the traffic in stores jumped 4.5% over the same period. The company’s adjusted earnings per share hit a record and its digital sales surged more than 25% for the fifth year in a row, even as its net income slid 26.5%. Target predicts the adjusted earnings for 2019 between 5.75 USD and 6.05 USD per share, above analysts’ expectations of 5.61 USD per share. Revenue of the company in Q4 2018 rose to 22.98 billion USD, while same-store sales are up by 5.3%.
Kohl’s reported better-than-expected earnings and sales during the crucial holiday shopping season. The company’s sales at stores open for at least 12 months were surprisingly improved, rising by 1% during the fiscal fourth quarter ended February 2. The analysts expected a 0.3% increase in comparable store sales. On an unadjusted basis, the company’s profit slid by 42% to 272 million USD, or 1.67 USD per share, from 468 million USD, or 2.81 USD per share, during the same quarter a year earlier. The company paid off 413 million USD in bonds during the quarter, taking a 21 million USD loss to extinguish outstanding debt. Overall, Kohl’s said it reduced its outstanding debt by over 900 million USD last year and extended the deadlines to repay the rest of its bonds by an extra two years, which it said will cut its annual interest payments by approximately 45 million USD.
Salesforce.com Inc beat earnings and revenue expectations but issued a weaker-than-expected full-year forecast. The company reported fiscal fourth-quarter net income of 362 million USD, or 0.46 USD per share, compared with 206 million USD, or 0.28 USD per share, in the year-ago period.