The markets were positive again today as earnings season and European trade deal helped support. The Dow 30 started the day a little negative but closed higher by 172. The S&P 500 added 25, and the Nasdaq 100 closed at record highs again as tech supported overall, adding 91.
In a meeting with the European commission leader, President Donald Trump stated that he wanted to "work something out on a fair trade deal with Europe" which helped support the markets. European markets closed lower ahead of the meeting. By the end of the day Trump was able to announce concessions on zero trade with the EU.
Shares also saw gains on news of a bill that could block the Trump auto tariffs until the international trade committee could conduct a stress test of sorts on the US automotive industry. The news pulled shares of Ford (F ) and General Motors (GM ) off their lows of the session.
In earnings news, we now have over 30% of the S&P 500 reporting results with about 85% of them beating expectations helping to support Wall Streets expectations of 20% earnings growth.
Coca-Cola (KO ) was your big leader in the Dow today as the company reported earnings that just beat Wall Street's expectations. Revenue came in better than expected as well as organic growth globally was the driving factor. In the US though the company says they are seeing "cost pressures" from the tariffs on steel and aluminum which is driving them to raise prices. They also announced "Feisty Cherry" as a new flavor.
Boeing (BA ) was the big loser in the Dow today despite the company reporting earnings and revenue that were better than expected. Investors chose to sell shares today as the company continues to write down charges on their KC-46 tanker program which is way behind schedule. The $418 million charge just adds to the already $3 billion in cost overruns for this aerial refueling effort. They are now two years behind.
UPS (UPS ) was one of the big leaders in the S&P 500 today as the company was just another name to report earnings that came in better than expected. Strong growth in online shopping was cited as the driving factor behind the beat. Technical traders note the close above the 200 day moving average for the first time in over a month.
AT&T (T ) reported earnings after the close yesterday showing a profit per share that was better than expected. The company also raised guidance for the year and showed that it added more wireless customers than expected. The stock fell to new, 52-week lows today despite the news as investors noticed revenue was lower than expected which analysts blamed on the recent merger with Time Warner. The miss was a small one though. Wall Street expected $39 .4 billion, they came in at $39 billion.
iRobot (IRBT ) shares blasted off 25% today as the makeer of the Roomba vacuum cleaner easily beat earnings. The company also reported revenue that was better than expected as well. On the conference call the company raised their guidance for the year and said it was seeing growth everywhere.
Limited Brands (LB ) shares fell to new lows today as Evercore announced their short position on the name. The company that manages brands like Victoria's Secret and Pink has been struggling with supply issues but Evercore cites a reduction in social media engagement as their reason for the trade.
In other news, new home sales fall 5.3% to 631,000 which is the lowest since October of last year. Economists were only expecting a decline of 2.8% at 670,000 units. The bulls were quick to point out that this report by the commerce department is derived from permits and tends to be quite volatile. Still, rising costs including labor, as well as land, and labor shortages continue to hurt the sector. The XHB lost another 2% on the day.
Oil saw a gain of 1% today as reports of stockpile reductions helped to reduce the concerns of an oversupply in the US.