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US stock markets ended the session with increases against expected US-China trade deal

Wall Street markets ended the day with increases in the background of the investors' optimism that Washington and Beijing could conclude a trade deal.

US stock markets

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The US stock markets ended the day with increases after the big technology companies such as Apple and Amazon performed well in the background of the investors’ optimism that Washington and Beijing could conclude a trade deal.

The blue-chip index Dow Jones Industrial Average rose by 257 points and marked its first three-day growth since November 28. The S&P 500 closed with a 0.97% increase, boosted by the communications sector and that of real estate companies. The technology index Nasdaq Composite rose by 1.1%.

Dow Jones Industrial Average

Today’s stock market movements happened in the background of the continuing negotiations between the US and China on the trade issues. The US Trade Secretary commented on Monday that the two countries could reach an agreement “to live with and address key issues”.

Meanwhile, China approved the import of 5 genetically modified (GMO) crops. This step could stimulate the purchase of foreign cereals and reduce US pressure to open the Chinese market for more agricultural goods. The US is the largest producer of GMO products, and China is the leading importer of genetically modified soybean and canola.

American farmers and world seed companies have long complained about the slow and unpredictable process of approving imported GMO products from Beijing, fueling trade tensions between the world’s two largest economies.

Corporate stocks performance

The tocks of Apple rose by 1.9% after the company’s Chief Executive Officer, Tim Cook, tried to dispel some of the concerns about the future of the technology giant. In an interview, he explained that “Apple’s ecosystem has never been stronger”. Last week, the company announced it was shrinking its quarterly revenue forecast, and as a reason for this, it pointed to the slowdown in China’s economy. Tim Cook also said he was pleased with the “real-time” information he received in connection with the US-China trade talks.

Amazon’s stock recorded an increase of 1.66%, while Facebook’s shares appreciated by 3.26%. The stocks of Netflix and Alphabet also ended on a green territory.

Investors are getting a little bit more optimistic. They noticed that FAANG are solid companies, and their ratings declined well after big sales.

Bank stocks did not perform well. The shares of J.P. Morgan Chase depreciated by 0.2%. Wells Fargo and Bank of America finished the trading on red.

The chip manufacturers stocks were the lost performing during the session. Nvidia and Applied Materials recorded a 2.5% and a 4.05% drop in stock prices, respectively. This happened after Samsung lowered its fourth-quarter earnings forecast due to the weaker demand for memory chips.

Corporate earnings reports

Motorcar Parts of America announced results for its fiscal 2019 second quarter ended September 30, 2018, reflecting record sales for both the quarter and six months on a reported and adjusted basis. The company’s net sales for the fiscal 2019 second quarter increased by 16.0% to 127.9 million USD, predominantly as a result of increases in the company’s rotating electrical business. Adjusted net sales for the fiscal 2019 second quarter increased by 14.5 percent USD to 130.2 million USD.

The steel manufacturer AZZ Incorporated reported bookings of 211.3 million USD, up 17.5% YoY, in the third quarter of fiscal 2019. Thus, the company’s backlog rose by 8.7% to 307.8 million USD. The consolidated revenue increased 15.1% to 239.5 million USD and net income increased to 15.4 million USD. AZZ Incorporated notes that market demand has improved, particularly in our industrial sector as turnarounds and outages returned to more normal levels. Despite the strong growth in revenue and new orders, the company missed the market expectations by 0.02 USD per share.

The farm and construction machinery maker Lindsay Manufacturing reported revenue of 112 million USD, which represent a decrease of 10.1% YoY, missing the projections by 1.57 million USD.