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US stocks gain for 4th straight day before earnings deluge

US stocks gain for 4th straight day before earnings delugeNEW YORK: Wall Street stocks rose for the fourth straight session Tuesday in anticipation of what is expected to be a strong corporate earnings season.

The Dow Jones Industrial Average gained 0.6 percent to end the day at 24,919.66.

The broad-based S&P 500 rose 0.4 percent to finish at 2,793.84, while the tech-rich Nasdaq Composite Index edged up less than 0.1 percent to 7,759.20.

Earnings for the second quarter are projected to rise 20 percent or more compared with the year-ago period, thanks to a strong US economy and the boon from last year’s massive corporate tax cuts.

Those forecasts have enabled investors to look past worries over trade conflicts between the US and China and other partners.

Beyond that, some analysts are skeptical the trade conflict will mushroom into a broader fight feared by the market.

CFRA Research analyst Lindsey Bell said some hard-hit equities such as industrials could gain once trade war fears recede.

“Once we get past these talks, which we view as a negotiating tactic by the Trump administration, this sector will jump,” she said on a conference call previewing earnings.

Among individual companies, PepsiCo surged 4.8 percent after reporting better-than-expected earnings per share.

Boeing gained 1.5 percent after announcing it delivered 194 commercial planes in the second quarter, up from 183 in the year-ago period.

Tesla Motors advanced 1.2 percent after unveiling plans to build a new factory in Shanghai targeting annual production capacity of 500,000 cars a year.

Earnings season gets going in earnest Friday with reports from JPMorgan Chase and two other giant US banks.

Copyright AFP (Agence France-Press), 2018

Source: Brecorder

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