- Nasdaq, S&P 500, and Dow Jones end higher
- Solid corporate earnings also play major role
- Coca-Cola, General Motors, Boeing, AT&T stocks trade lower
Major Wall Street indexes strengthened yesterday after European Commission president Jean-Claude Juncker and US president Donald Trump reached an agreement that might prevent a trade war.
The Nasdaq, S&P 500 and Dow Jones all reached daily highs as Juncker and Trump adopted conciliatory tones in their press statements. Trump said that the two men agreed to work toward lower tariffs and boost European imports of US soybeans and liquefied natural gas.
The S&P 500 strengthened by 0.91% to 2,846.07, the Dow Jones Industrial Average traded 0.68% higher at 25,414.10, and the Nasdaq Composite rose by 1.17% to 7,932.24.
The Nasdaq and the S&P 500 were bolstered by price increases in the tech sector. Stocks of Microsoft Corp (+2.1%) and Facebook Inc (+1.4%) reached record highs. The Dow Jones, which had been hampered by Boeing’s report on escalating costs for its aerial refueling tanker program, started improving yesterday despite Boeing shares trading 1.9% lower.
Meanwhile, Visa stocks traded 1.1% higher.
Corporate earnings have managed to prop up US share prices so far, despite continued worries about tariffs increasing corporate costs and reducing profits. Of the 148 companies on the S&P 500 that have published earnings reports so far, 85.8% have exceeded market expectations.
Coca-Cola stocks went up by 1.8% after the firm’s quarterly profits and sales exceeded estimates, while HCA Healthcare Inc. stocks surged 9.1% after the company increased its earnings projections for the full year.
General Motors Co stocks dropped 5.8% after a weaker forecast for 2018 profit, while shares of Ford Motor Co dropped 2%. The AT&T share price also fell by 4.6% after it missed estimates for quarterly revenue.
Other companies that saw their share prices lose value included NXP Semiconductors NV and Qualcomm Inc.