The main indexes of the New York Stock Exchange ended today’s trading session with slight growth amid the threats of the US President Donald Trump’s administration to impose customs tariffs against the European Union imports.
The blue-chip index Dow Jones Industrial Average advanced by 30.60 points, or 0.11%, to 26,748.03 points. The broader S&P 500 rose by 0.15% to 2,968.70 points, while the technology index Nasdaq Composite rose by 0.05% to 8,095.40 points.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 8.04% to 12.93 a new 1-month low.
Investors drove a strong comeback in stocks last month and have continued to do so this week on expectations that the Federal Reserve will cut interest rates amid signs of a slowing global economy and uncertainty over multiple US trade disputes. Traders are waiting to see what will come from the latest truce in the US-China trade war. They’re also looking ahead to a key government jobs report due out Friday, among other potential market-moving developments in the next few weeks.
Companies are lining up to tell investors in upcoming weeks how much profit they made during the spring. Expectations are generally low, and this could be the first time in three years that S&P 500 companies report a back-to-back decline in overall earnings, according to FactSet.
The US government has threatened to impose customs tariffs on the European Union imports worth 4 billion USD due to controversial subsidies granted by the bloc to the aircraft manufacturer Airbus.
The US Trade Representative Robert Lighthizer’s office in Washington presented a list of goods imported from the EU, which may be levied with duties. The customs tariffs will be added to an already published list of goods with an annual turnover of 21 billion USD, the office said. A public hearing in Washington is scheduled for August 5.
The good performance of chip makers and technology companies supported the record levels reached by the S&P 500 within the session. The resumption of trade talks between the United States and China after Donald Trump’s meeting with Chinese President Xi Jinping added the necessary dose of optimism to the actions of investors.
On the bond markets, the yields on 10-year and 30-year US government bonds fell to 1.977% and 2.506%, respectively.
Corporate stocks performance
Communications, technology and consumer goods companies accounted for much of the market’s gains Tuesday.
The shares of Citigroup declined by 0.6%, while those of Bank of America and Wells Fargo reported a decline of more than 1%.
Verizon Communications and Cisco Systems gained strongly within the blue-chip index, rising by 2.61% and 1.95%, respectively.
The collapse in crude oil prices pushed the stocks of energy companies down with Chevron and Exxon Mobil declining by 1.52% and 1.06%, respectively.
Delta Air Lines climbed 1.3% after it gave a profit forecast for the just-completed quarter that was stronger than analysts had been expecting. The carrier said revenue during the quarter was at the high end of its initial expectations, while costs other than fuel were up just 1% to 2%.
The shares of Simply Good Foods jumped by 2% after reporting fiscal third-quarter earnings.
However, Railcar maker Greenbrier and Acuity Brands wiped out 7% and 8%, respectively, after reporting fiscal third-quarter results. Acuity posted the worst early loss among S&P 500 stocks.
The Ireland-based biotech company Amarin popped more than 16% after raising its sales guidance.
Shares of defense giant L3 Harris Technologies – the recently merged L3 Technologies and Harris Corporation – jumped on Tuesday in their second day of trading on the New York Stock Exchange.
The stocks of Range Resources fell to 5-year lows, losing 8.44%, after the company hired Margaret Dorman to serve on board of directors’ audit committee.
The stocks of OMNOVA Solutions collapsed by 4% after announcing that it has entered into a definitive agreement to be acquired by Synthomer plc, a United Kingdom-based specialty chemical company, for 10.15 USD per share in cash.
Meanwhile, the shares of Interpublic Group, the New York-based advertising giant, surged by 3% to its highest level in nearly one month.
The top performers on the S&P 500 were Harris Corporation (+4.22%), HCP Inc (+3.15%) and Welltower (+3.01%), while on the flipside were Range Resources (-8.44%), Acuity Brands (-7.84%) and Apache Corporation (-6.23%).
Corporate earnings reports
Acuity Brands came out with quarterly earnings of 2.53 USD per share, beating analysts’ estimates for 2.50 USD per share. This compares to earnings of 2.37 USD per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Acuity Brands posted revenues of 947.60 million USD for the quarter ended May 2019, missing the analysts’ estimates, but beating the year-ago revenues of 944 million USD. The company has topped consensus revenue estimates two times over the last four quarters.
Greenbrier posted revenues of 856.15 million USD for the quarter ended May 2019, missing the forecasts of the analysts, but beating the year-ago revenues of 641.39 million USD. The quarterly earnings of 0.89 USD per share also missed the analysts’ estimates