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Wall Street stocks growing in the beginning of the week

Wall Street stocks

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Wall Street indexes ended the stock market session on Monday on green territory after US President Donald Trump and his Chinese counterpart, Xi Jinping, reached an agreement for a 90-day ceasefire in the trade war between the two countries.

The blue-chip index Dow Jones Industrial Average ended the session with a growth of 280 points, or 1.13%, to a level of 25,826.43 points. The broader index S&P 500 expanded by 1.09% to 2,790.37 points, while the technology benchmark Nasdaq Composite increased by 1.51% to 7,441.51 points.

The markets reached their biggest gains earlier, with Dow Jones reaching a maximum level of 25,960.53 points in the first minutes after the bell.

However, many economists are not so optimistic about the sustainability of the market’s revival, as the ceasefire in the trade war is temporary and no problems had been solved so far. but investors are looking with optimism to the agreement between Donald Trump and Xi Jinping, as well as an anticipated deal between Russia and Saudi Arabia to curb oil production in support of raw material prices.

The crude oil futures also rallied on Monday. The price of the WTI crude oil rose by 4.26% to 53.10 USD per barrel, while the futures on the Brent oil rose by 3.99% to 61.83 USD per barrel.

On the bond markets, the yields on 10-year government securities decreased to 2.972%, while the 30-year bonds fell to 3.255%.

Corporate performance

The stocks of automakers were among the best performers during the session. The stocks of General Motors, Ford and Tesla rose by 1.3%, 2%, and 2.3% respectively after Donald Trump published a tweet stating that the Chinese authorities had agreed to reduce their duties on US cars imports.

The stocks of Boeing increased its value by 3.8% and that of Caterpillar by 2.4%. The shares of companies operating in China and trading in the country also rose, with those of Micron and Nvidia rising by 3.8% and 4% respectively.

The positive moods after the ceasefire in the US-China trade war also influenced the technology stocks. The market capitalization of Apple expanded by 3.49%, Cisco Systems rose by 1.82%, Intel Corp increased by 1.66% and Microsoft rose by 1.08%.

The growth in crude oil prices supported the performance of Exxon Mobil and Chevron, which stocks expanded by 2.16% and 1.45%, respectively.

Earnings reports

The Russian gas producers Gazprom posted its financial statement in Q3 2018 with EBITDA growth stood at 86% year-on-year in rubles, while in dollar terms the number is up by 68%. The revenues of the company rose by 35% YoY to 1.93 trillion RUB (29.09 billion USD). The company’s free cash flow stood at 369 billion RUB.

The Nevada-based commercial aviation holding Mesa Air reported net income of 19.4 million USD in Q3 2018 or 0.65 USD per diluted share. The company’s income before taxes was 26.6 million USD, compared to 10.2 million USD during the last period last year. In addition, Mesa Air’s EBITDA for Q3 2018 was 59.3 million USD. Mesa operated 112,475 block hours during the third quarter.

Coupa Software, which develops a platform for Business Spend Management, reported total revenues of 67.5 million USD, an increase of 42% compared to the same period last year. The subscription revenues were 60.6 million USD, an increase of 42% compared to the same period last year. The company’s GAAP operating loss was 9.9 million USD, compared to a loss of 11.2 million USD for the same period last year.

The offshore ultra-deepwater drilling company Pacific Drilling reported a net loss of 144.8 million USD in Q3 2018 or 6.78 USD per diluted share, compared to net loss of 157.5 million USD in the same period last year. Third-quarter 2018 contract drilling revenue was 56.7 million USD, which included $5.3 million of deferred revenue amortization. During the third quarter, the Pacific Drilling operating fleet of drillships achieved revenue efficiency averaging 99.8% compared to 98.7% for the second quarter.