US. Equities rallied closer to record levels on Tuesday as investors embraced a series of predominantly positive corporate earnings reports, weighing the impact of a partial trade agreement between the US and China announced last Friday.
What are the main benchmarks?
The Dow Jones Industrial Average
DJIA, + 1.02%
rose 256.83 or 1.0% to 27,044, while the S & P 500 Index
SPX, + 1.15%
gained 32 points or 1.0% to 2,998. The Nasdaq Composite Index
COMP, + 1.33%
rose 96 points or 1.2% to 8,146.
The S & P 500 was about 1% below its record high of 3,025.86, which was set on July 26, while the Dow Jones Industrial Average was 1.2% below its record July 27 level of 27,359 16, and the Nasdaq Composite was down 2.3% from its record 26th July from 8,330.21.
The Dow dropped 29.23 points on Monday to 26,787.36, down 0.1%. The S & P 500 closed 4.12 points lower, losing 0.1% at 2,966.15, while the Nasdaq Composite lost 8.39 points or 0.1%, ending at 8,048.65.
Read: 5 prominent US companies are most responsible for the earnings recession
What drives the market?
Third-quarter US corporate earnings reporting season started Tuesday with results from the country's largest banks This reflects a relatively healthy US consumer and a more cautious corporate sector.
Shares of JPMorgan Chase & C o.
JPM, + 3.96%
After sales and earnings increased more-than-expected due to the Consumer Banking business, while Wells Fargo & Co.
WFC, ] + 3.21%
also rose after a surprise increase in revenue, despite higher-than-expected gains in the third quarter.
C, + 1.98%
stocks gained after reporting quarterly revenues and profits that exceeded expectations during Goldman Sachs Group Inc.
GS, + 0.13%
GS, + 0.13%
reported a steep profit decline of 26% over the same period last year, reflecting the weakness of the market for mergers and acquisitions as well as on the drawing of debt securities and shares.
It's a better time to be a traditional, consumer-oriented bank than an institutional bank or a commercial bank. "Underwriting and financial advice were weak points [in the third quarter] but the consumer is broadly stable," he added.
UnitedHealth Group Inc .
UNH, + 7.63%
delivered the most impressive earnings release on Tuesday after earnings and sales exceeded expectations and the healthcare provider raised its annual outlook.
According to FactSet, S & P 500 index earnings are expected to decline 4.6% in the third quarter. This would be the first time that index company profits have fallen in three consecutive quarters since the fourth quarter of 2015 through the second quarter of 2016, according to FactSet analyst John Butters.
Earnings forecasts focused on headwinds from the slowdown in global economic growth and uncertainty in international trade policy, with profit margins under pressure. However, corporate buybacks once again weighed on earnings per share.
"Corporate America is likely to see little or no profit growth in the third quarter," said John Lynch, LPL Financial's Chief Investment Strategist. "However, we think that better days lie ahead. We expect trade advances to keep US economic growth at or above the trend of current economic expansion. It is unlikely that the trade dispute between the US and China will be resolved soon, but we believe that taking small steps forward can boost business confidence, encourage capital investment and increase corporate profits.
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Enthusiasm over a US-China trade agreement spurred stocks up late last week, but analysts said that the lack of details about planned tariff increases and other elements dampened enthusiasm. On Monday, stock prices fall again.
"The recent turnaround in the trade dispute between the US and China is another indication that investors are not involved in the hype," said Han Tan, market analyst at FXTM, in a note. "The attempt to bridge the conflicting interests between the two largest economies in the world is a daunting task, a business that has already proven to be tedious and complicated."
Speaking to reporters in London, the President said The US Federal Reserve Bank, James Bullard, may be over-optimistic about the length of time it takes to close deals, stressing that consumer data are strong but "backward" and therefore said he "highlighted these downside risks as well as preventive measures To avoid recessions, "Bullard disagreed last month with the Federal Reserve's decision to cut interest rates by a quarter of a point and instead demand a cut of half a point.
In its World Economic Outlook released on Tuesday, the IMF anticipates that global economic growth in di year to 3%, the slowest pace since then, the financial crisis of 2008.
Which titles are the focus?
Johnson & Johnson of Dow
JNJ, + 2.02%
reported gains and revenues in excess of Wall Street estimates The company has raised its guidance for the full year.
Shares of BlackRock Inc.
BLK + 2.97%
rose after reporting a lower-than-expected decline in profits.
How are other markets traded?
The yield on the 10-year US Treasury note
TMUBMUSD10Y, + 1.92%
increased from 1.748% on late Friday to 1.754%. The bond markets were closed on Mondays due to the Columbus Day holidays.
On the commodities markets the crude West Texas Intermediate
fell on the New York Mercantile Exchange and gold futures by 6 cents to $ 53.53
rose on Comex at $ 13-1484.70.
European equities rose Tuesday on optimism over the possibility of a deal for an agreed Brexit pact and an above-average price. forecasted US revenue. The Stoxx Europe 600
SXXP, + 1.11%
rose 1.1% to 394.02, the best since May 22, 2018.
Asia traded overnight with Japan's Nikkei
NIK, + 1.87%
rising 1.9%, the China CSI 300
fall by 0.4% and the Hang Seng Index of Hong Kong
falling 0.1%. In Europe, inventories were largely higher than the Stoxx Europe 600
SXXP, + 1.11%