• Home
  • Analytics
  • Market News
  • Major US stock indexes finished trading in positive territory

Market news

23 July 2019

Major US stock indexes finished trading in positive territory

Major US stock indices rose moderately, as investors reacted positively to quarterly reports and forecasts of companies such as Coca-Cola and United Technologies. The market was also supported by news that US trade negotiators will travel to Shanghai on Monday for talks.

Coca-Cola (KO; + 6.22%) reported receiving quarterly profit of $ 0.63 per share, which was above the analysts' average forecast of $ 0.61. The company's revenue also exceeded forecasts, and Coca-Cola raised its annual revenue forecast due to increased demand for some new soft drinks and coffee.

United Technologies (UTX) reported a profit of $ 2.20 per share, which turned out to be $ 0.15 above the analysts' average forecast. In addition, conglomerate revenue slightly exceeded Wall Street's estimate, and United Technologies raised its forecast for key financial indicators for the entire year, as it benefits from the purchase of Rockwell Collins.

Meanwhile, the quarterly earnings of Travelers (TRV) for the reporting period reached $ 2.02 per share, which turned out to be lower than the average forecast of analysts at $ 2.30. The revenue of the insurance company exceeded forecasts for higher net investment income and premiums, but the insurer also saw higher losses from non-weather accidents than it was a year earlier. Shares of TRV sank 1.61%.

Over 18% of S & P 500 companies have already published quarterly figures for the second quarter. According to FactSet, of these companies, 78% showed higher than expected earnings for the last reporting period. After a strong start to the corporate reporting season, interviewed by Refinitiv, they now predict that the profits of the S & P 500 companies will increase by about 1% y / y, whereas they had previously expected a slight decline.

Another positive thing for the market was the announcement of an agreement between President Trump’s administration and Congress leaders on the country's budget for fiscal years 2020–2021 and an increase in the national debt ceiling. This agreement will help to avoid a technical default of the government at the end of this year, but will increase the budget deficit.

Meanwhile, some pressure on the market has been reported that the International Monetary Fund (IMF) has again lowered its forecast for global economic growth, as the trade war between the US and China continues, Brexit fears persist, and inflation remains restrained. The fund now expects the world economy to grow by 3.2% in 2019, while in April it predicted a growth of 3.3%. The IMF also warned that a further increase in tariffs by the United States and China, the introduction of tariffs on imported cars or indiscriminate Brexit may slow down growth even further. 

Most of the components of DOW finished trading in positive territory (24 out of 30). The growth leader was The Coca-Cola Co. (KO; + 6.22%). Outsiders were The Travelers Companies (TRV; -1.61%).

Almost all sectors of the S & P recorded an increase. The industrial goods sector grew the most (+ 1.2%). Only the utility sector decreased (-0.2%).

At the time of closing:

Dow 27,349.19 +177.29 + 0.65%

S & P 500 3,005.48 +20.45 + 0.69%

Nasdaq 100 8,251.40 +47.27 + 0.58%

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
37 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2020 TeleTrade-DJ International Consulting Ltd

TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. You may change your cookie consent or view our cookie declaration here.

TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.