Stocks finished higher Tuesday as investors digested a deluge of corporate earnings and positive geopolitical updates. The Dow added 177 points, while the S&P 500 gained 0.7%. The Nasdaq Composite climbed 0.6%.
In trade news, U.S. officials confirmed reports that they plan to travel to China for in-person negotiations next week. Separately, the White House said it agreed to make “a timely decision” on potential licenses for U.S. technology companies to sell products to Huawei Technologies. An update from Capitol Hill confirmed President Trump signed off on legislation to suspend the federal borrowing limit and increase government spending for two years.
The Industrials and Materials sectors paced the gains today as the groups added 1.2% and 2.0% respectively. In earnings, Coca-Cola surged 6.1%, its largest jump in four years, after the beverage maker topped analyst profit estimates. United Technologies advanced 1.5% after the aerospace giant delivered a top and bottom line beat and raised its 2019 outlook. Lockheed Martin added 0.1% following positive earnings results from the defense contractor. In M&A news, Apple is reportedly in late-stage discussions to acquire Intel’s smartphone modem-chip business.
On the data front, a report revealed existing home sales fell more than anticipated in June. Separately, the FHFA House Price Index increased by 0.1% in May, below consensus estimates of 0.4%. An additional release showed the Richmond Fed Manufacturing Index dipped into negative territory in June. Treasuries were weaker, with the yield on the 10-year note up two basis points to 2.07%. In commodities, WTI crude climbed 1.3% to $56.92/barrel.