Tuesday July 23rd

23-07-2019

Dow set to jump 100 points at the open after better-than-expected earnings from Coca-Cola

U.S. stock index futures jumped on Tuesday morning after a number of better-than-expected earnings. As of 7 a.m. ET, Dow Jones Industrial Average Futures futures were up 98 points and pointed to an implied open of around 114 points, while futures on the S&P 500 and Nasdaq 100 also climbed. Coca-Cola and United Technologies shares both jumped after the companies reported second-quarter earnings. Shares of Coca-Cola traded 1.9% higher while United Technologies advanced 2.3%. Visa, Chipotle and Snap are among those reporting after the bell. More than 18% of S&P 500 companies have posted quarterly numbers this earnings season. Of those companies more than 78% have reported better-than-expected profits, according to FactSet data. Those companies have also seen their earnings grow by an aggregate of 3.6%. Meanwhile, Intel shares jumped 1.1% after the Wall Street Journal reportedthat Apple is in talks to buy the company’s modem chip business. Meanwhile, global stocks appeared to receive support from expectations that the European Central Bank (ECB) and the Federal Reserve could soon cut interest rates. The ECB is seen cutting rates by 10 basis points on Thursday, with the U.S. central bank expected to lower rates by 25 basis points at the end of the month. The Stoxx 600 index jumped 0.8% while the German Dax and French CAC 40 climbed 1.5% and 0.7%, respectively. Spanish and Italian stocks also traded higher. Economic data will also be in focus, with May’s Federal Housing Finance Agency House Price Index (HPI) due at 9:00 a.m. ET and June’s existing home sales figures set for release at 10 a.m. ET. Stocks in Asia Pacific edged up on Tuesday, as investors await closely-watched central bank meetings in the coming days. Mainland Chinese stocks were higher on the day, with the Shenzhen composite 0.877% higher to 1,545.87 and the Shenzhen component rising 0.58% to 9,175.83, while the Shanghai composite was 0.45% higher at 2,899.94. Hong Kong’s Hang Seng index added 0.3%, as of its final hour of trading. The Nikkei 225 in Japan added 0.95% to close at 21,620.88, with shares of semiconductor equipment manufacturer Tokyo Electron jumping about 3%. The Topix index also rose 0.8% to finish its trading day at 1,568.82. In South Korea, the Kospi advanced 0.39% to close at 2,101.45. Oil edged further above $63 a barrel on Tuesday, supported by rising tensions in the Middle East after Iran’s seizure of a British tanker last week, although signs of faltering demand capped gains. Iran’s capture of the tanker has sparked concern about supply disruptions in the Strait of Hormuz, a chokepoint in the Gulf through which about a fifth of the world’s oil supply flows. “Recent incidents in the Middle East should remind us that the situation is fluid and tensions could flare up again,” said Giovanni Staunovo, analyst at UBS. “We still expect Brent prices to move above $70 over the next three to six months.” Brent crude climbed 11 cents to $63.37 a barrel by 0836 GMT. The international benchmark rose more than 1% on Monday, fuelled by Iran concerns. U.S. West Texas Intermediate crude added 16 cents to $56.38. Gold prices slipped to a near one-week low on Tuesday as the dollar strengthened following a deal on extending debt limit in the United States. President Donald Trump and U.S. congressional leaders agreed on Monday on a two-year extension of the debt limit and federal spending caps to avert a government default this year but adding to budget deficits in the world’s largest economy. Spot gold fell 0.4% to $1,418.39 per ounce. Prices had dropped to $1,413.80 earlier in the session, last touched on July 17. U.S. gold futures dropped 0.6% to $1,419.