Breaking News

Stocks rise on earnings; sterling falls

Stock MarketsJul 23, 2019 11:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

By Stephen Culp

NEW YORK (Reuters) - A host of upbeat earnings pushed U.S. stocks higher on Tuesday and world stocks rose in anticipation of central bank easing, while pound sterling fell on the expected confirmation of hard-Brexit advocate Boris Johnson as Britain's next prime minister.

Dow components Coca-Cola (NYSE:KO) Co and United Technologies Corp (NYSE:UTX) both beat second-quarter earnings expectations as the reporting season shifts into high gear.

"You're having good results from a variety of companies and that has put a positive spin on the opening," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

The International Monetary Fund cut its global growth forecast through 2020 over concerns about the protracted tariff spats between the United States and its trading partners and the prospect of a disorderly Brexit.

"The IMF is just stating the obvious," Tuz added. "The tariffs have cast a pall on global trade."

The Dow Jones Industrial Average rose 92.12 points, or 0.34%, to 27,264.02, the S&P 500 gained 8.71 points, or 0.29%, to 2,993.74 and the Nasdaq Composite added 12.86 points, or 0.16%, to 8,216.99.

The European STOXX 600 benchmark rose over 1%, helped by a 6% surge in automakers and growing certainties of policy easing from the European Central Bank and the U.S. Federal Reserve.

The pan-European STOXX 600 index rose 1.20% and MSCI's gauge of stocks across the globe gained 0.31%.

The dollar hit a two-week high against a basket of world currencies, on the heels of a congressional deal to extend the U.S. debt limit for two years, easing fears of a government default.

"The budget deal is also a minor worry that's been pushed aside for a while," said Tuz.

But the British pound slid after Brexit advocate Johnson won the Conservative Party leadership race and will replace Theresa May as the country's prime minister.

With Johnson at the helm, credit ratings agency Moody's and investment Goldman Sachs (NYSE:GS) both warned the risk of a no-deal Brexit was now higher.

"We raise our odds on a 'no deal Brexit from 15% to 20%, and we reduce our odds on 'no Brexit' at all from 40% to 35%," Goldman said.

The dollar index rose 0.44%, with the euro down 0.5% to $1.1152.

The Japanese yen weakened 0.24% versus the greenback at 108.14 per dollar, while sterling was last trading at $1.2435, down 0.31% on the day.

Brent crude prices eased as worries faded over escalating tensions in the Middle East following Iran's seizure of a British oil tanker.

U.S. crude fell 0.32% to $56.04 per barrel and Brent was last at $63.00, down 0.41% on the day.

U.S. Treasury yields inched higher as market participants eyed upcoming ECB and Fed meetings for new signals about how many interest rate cuts can be expected.

Benchmark 10-year notes last fell 3/32 in price to yield 2.0533%, from 2.043% late on Monday.

The 30-year bond last fell 11/32 in price to yield 2.5857%, from 2.57% late on Monday.

Gold prices eased to a near one-week low following the U.S. congressional debt ceiling deal.

Spot gold dropped 0.1% to $1,423.69 an ounce.

Copper lost 1.10% to $5,951.50 a tonne.

Three-month aluminum on the London Metal Exchange rose 0.08% to $1,817.50 a tonne.

Stocks rise on earnings; sterling falls

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Bagger Vance
Bagger Vance Jul 23, 2019 3:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They will cut, even if micro-cut, they will
TYRONE MORGAN Jul 23, 2019 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They've been hoping and wishing for a Fed rate cut for how long now? Give it up, they'll cut when they cut, meanwhile, let's focus on the basics, you know earnings, revenue, markets... instead of rabbit's feet and four-leaf clovers.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email