AVN 55.47 Decreased By ▼ -1.55 (-2.72%)
BOP 10.21 Increased By ▲ 0.08 (0.79%)
CHCC 129.20 Increased By ▲ 0.37 (0.29%)
DCL 9.10 Decreased By ▼ -0.22 (-2.36%)
DGKC 104.75 Decreased By ▼ -2.84 (-2.64%)
EFERT 67.05 Decreased By ▼ -0.45 (-0.67%)
EPCL 31.75 Decreased By ▼ -0.85 (-2.61%)
FCCL 21.15 Increased By ▲ 0.04 (0.19%)
FFL 13.15 Increased By ▲ 1.18 (9.86%)
HASCOL 13.64 Increased By ▲ 0.06 (0.44%)
HBL 129.74 Increased By ▲ 5.08 (4.08%)
HUBC 82.60 Increased By ▲ 1.20 (1.47%)
HUMNL 9.51 Decreased By ▼ -0.09 (-0.94%)
JSCL 15.68 Decreased By ▼ -0.17 (-1.07%)
KAPCO 24.35 Decreased By ▼ -0.40 (-1.62%)
KEL 3.60 Decreased By ▼ -0.11 (-2.96%)
LOTCHEM 12.96 Decreased By ▼ -0.24 (-1.82%)
MLCF 33.00 Decreased By ▼ -0.65 (-1.93%)
OGDC 113.55 Decreased By ▼ -0.95 (-0.83%)
PAEL 33.35 Increased By ▲ 0.60 (1.83%)
PIBTL 11.10 Decreased By ▼ -0.24 (-2.12%)
PIOC 80.06 Increased By ▲ 3.96 (5.2%)
POWER 8.74 Increased By ▲ 0.62 (7.64%)
PPL 99.30 Increased By ▲ 0.27 (0.27%)
PSO 183.52 Decreased By ▼ -0.48 (-0.26%)
SNGP 55.85 Decreased By ▼ -0.51 (-0.9%)
STPL 11.55 Increased By ▲ 0.34 (3.03%)
TRG 48.35 Decreased By ▼ -1.41 (-2.83%)
UNITY 12.57 Increased By ▲ 0.01 (0.08%)
WTL 0.97 Decreased By ▼ -0.04 (-3.96%)
BR100 4,097 Decreased By ▼ -40 (-0.95%)
BR30 20,920 Decreased By ▼ -239 (-1.13%)
KSE100 39,578 Decreased By ▼ -294 (-0.74%)
KSE30 17,158 Decreased By ▼ -163 (-0.94%)
COVID-19 TOTAL DAILY
CASES 280,461 0
DEATHS 5,999 0
Sindh 121,705 Cases
Punjab 93,336 Cases
Balochistan 11,777 Cases
Islamabad 15,095 Cases
KP 34,253 Cases
Markets

Wall Street gains on robust Coca-Cola, United Tech earnings

US stocks rose on Tuesday boosted by better-than-expected earnings and forecast raises from blue-chip companies includin

23 Jul 2019

US stocks rose on Tuesday boosted by better-than-expected earnings and forecast raises from blue-chip companies including Coca-Cola and United Technologies, soothing concerns over the pace of economic growth.

Over the last 24 hours investors have reacted positively to a series of second-quarter reports, albeit often against expectations for profits, which have been lowered due to this year's concerns over growth.

"Analysts notoriously underestimate how well these companies will do, and part of it is that companies intentionally lowball the analysts so that they can beat their estimates," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Coca-Cola Co shares rose 4.9pc, the most among stocks listed on the Dow Jones index, after the fizzy drink maker beat quarterly earnings expectations and raised its full year organic revenue forecast.

Its gains pushed the consumer staples sector 0.9pc higher, the biggest gainer among the major S&P sectors.

Industrial conglomerate United Technologies Corp gained 1.6pc, after raising its full-year profit and sales outlook.

President Donald Trump and US congressional leaders reached a deal on Monday on a two-year extension of the debt limit and federal spending caps that would avert a feared government default later this year, but add to rising budget deficits.

"I think it is a very positive thing that they have reached a budget deal. That pushes concerns of a debt ceiling and the budget beyond the next presidential election, which is one less thing for the market to worry about," Frederick said.

The overall profits of S&P companies are now estimated to rise about 1pc in the second quarter, according to Refinitiv IBES data, improving from estimates of a small decline earlier.

Putting a damper on sentiment, the International Monetary Fund lowered its forecast for global growth this year and next, warning that more US-China tariffs, auto tariffs or a disorderly Brexit could slow growth further.

Hopes that the Federal Reserve will adopt a looser monetary policy have helped Wall Street's main indexes scale new record levels, and put the S&P 500 just about 1pc shy of its all-time high.

At 9:44 a.m. ET, the Dow Jones Industrial Average was up 115.45 points, or 0.42pc, at 27,287.35, the S&P 500 was up 10.73 points, or 0.36pc, at 2,995.76. The Nasdaq Composite was up 23.76 points, or 0.29pc, at 8,227.89.

The European Central Bank is expected to cut interest rates on Thursday by 10 basis points and the Fed, which will meet a few days later, is widely expected to lower rates by at least 25 basis points.

Travelers Cos Inc was down 1.1pc after the insurer missed estimates for second-quarter profit, as weather-related losses led to an 18pc drop in underwriting gain.

Hasbro Inc jumped 6.2pc and was the biggest gainer among S&P 500 companies, after the toymaker reported better-than-expected quarterly revenue.

Advancing issues outnumbered decliners for a 2.41-to-1 ratio on the NYSE and a 1.40-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and two new lows, while the Nasdaq recorded 27 new highs and 38 new lows.

Copyright Reuters, 2019