On Tuesday Wall Street rallied on earning reports from Technology and consumer stocks. Bullishness by investors on the State of the Union address by US President Trump also contributed to the optimism in the markets.
• The Dow Jones Industrial Average gained 0.45 percent, up 113.48 points at 25,352.85
• The Nasdaq Composite rose 0.41 percent or 29.79 points at 7,377.33, with 48 new highs and 10 new lows
• The S&P 500 gained 0.17 percent up 4.8 points at 2,729.45
Boosting the technology index, Alphabet Inc. FAANG earnings on quarterly revenue and profit were better than expected, however, shares were down 0.8 percent on concerns of higher spending.
Apple Inc rose 1.4 percent while on the consumer discretionary sector Amazon.com shares rose 1.2 percent.
Boosting the S&P 500 after exceeding quarterly expectations was Estee Lauder Cos Inc. cosmetics maker whose shares rose 12.21 percent and Ralph Lauren Corp. with a rise of 8.98 percent. The S&P Index had 12 new 52 week highs, with no new lows. So far for the Year the S&P 500 and Dow Jones Industrials are up 9 percent with the Nasdaq gaining 11 percent.
Beating estimates on reported earnings are around 71 percent of companies on the S&P.
Director of Investment management for Huntington Private Bank in Ohio, Chad Oviatt said that top-line and bottom-line numbers have made it a good earnings season. Companies have stepped over the hurdle. You can see that the capital spending plans at tech companies with forecasts on growth like the earnings report from Google.
That’s not all …
Plane manufacturer, Boeing gained 2 percent after investing in Aerion, supersonic business jet developer.
The Federal Reserve Bank’s dovish stance on a successful conclusion between the U.S. and China on the trade deal also helped the market rally.
Focus on US President Trump’s Speech
President Trump will be holding his State of the Union address to the nation. It is widely expected that he will speak of funding for the border wall, challenging the Democrats. Speculation in the markets is that he may declare a national emergency to fund building the border wall on the US-Mexican border. However, according to a source, President Trump will not take that step.
U.S. 10 year treasury bonds slipped, weighing on the S&P 500 with Bank stocks falling 0.5 percent on the financial sector.
Markets are closed in Hong Kong, China, Malaysia, Singapore, Korea, New Zealand, and Taiwan for a holiday.
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