Dow Jones And S&P Indexes Closed Higher On Tuesday, While The Nasdaq Declined
The Dow Jones and S&P 500 finished higher on Tuesday, while the Nasdaq Composite declined.
Investors bought shares in energy and financial companies and evaluated the quarterly reports of several firms, including Coca-Cola and Lockheed Martin.
The market was also supported by the news that EU leaders, after four days of negotiations, reached an agreement on the recovery plan for the economy affected by the coronavirus pandemic and the EU budget for 2021-2027.
"The budget for the next seven years will be 1.074 trillion euros, and we have decided to mobilize 750 billion euros to support the possibility of economic recovery," European Council President Charles Michel said at a final press conference on Tuesday morning.
The company's results look poor, given the significant negative consequences of the coronavirus pandemic for many businesses, but in most cases, they exceeded expectations, writes MarketWatch.
Investors will be waiting for news about the progress of negotiations in Washington on a new package of financial assistance in connection with the coronavirus pandemic. Lawmakers must decide on the relevant bill by the end of the month.
"Today, we see optimism associated with a potential coronavirus vaccine and new economic incentives," says Cadence Capital chief Executive officer Mike Skillman.
"The greatest damage was caused to cyclical sectors, where revenue fell by 30-40%, and profits fell even more," he said while noting signs indicating that the low point is probably already passed.
The index of economic activity calculated by the Federal Reserve Bank of Chicago rose to a new record high in June, amid the easing of restrictions imposed due to the coronavirus pandemic.
The value of the CFNA indicator last month was plus 4.11 points, compared with a revised 3.5 points in May. The Federal Reserve has been calculating it since 1967.
The share price of International Business Machines fell by 0.25%. The company's net profit and revenue declined in the second quarter of 2020 on the back of the coronavirus pandemic but were better than market forecasts.
Coca-Cola Co.' s stock rose by 2.3%. The world's largest producer of soft drinks cut its net profit by a third in the second quarter, but it was higher than experts expected.
Lockheed Martin's stock price rose by 2.6%. The US Military-Industrial Group reported quarterly profit and revenue that exceeded analysts' forecasts and improved its annual forecast.
The capitalization of eBay Inc. decreased by 3.22%. One of the world's largest online platforms has agreed to sell the business of category advertising to the Norwegian Adevinta, according to press releases from the companies.
The shares of Walmart Inc. rose 0.65%. The retailer said it would pay employees who receive hourly wages new bonuses to encourage them to work during the coronavirus pandemic. The company will spend about $428 million on bonuses. Full-time employees will receive $300, while temporary employees will receive $150. Walmart also said it would close its stores on thanksgiving.
Wells Fargo & Co. securities rose by 6.6%. The Bank's Chief Financial officer, John Shrewsbury, will leave his post in the fall after 22 years at the company. He has held the position of CFO since 2014. Mike Santomassimo, who previously served as CFO at Bank of New York Mellon Corp., has been appointed as the Bank's new chief financial officer.
The Dow Jones Industrial Average rose 159.53 points (0.6%) to 26,840.4 points at the close of trading on Tuesday.
The Standard & Poor's 500 added 5.46 points (0.17%) to 3,257.3 points. The Nasdaq Composite fell 86.73 points (0.81%) to 10680.36 points.