US Stock Market Overview – Stock Rally Led by Robust EarningsCoke and United Technologies buoy US equities
US stocks surged higher on Tuesday following news that a budget deal was in place. Stronger than expected earnings from United Technologies and Coca Cola. The S&P 500 index recaptured the 3K mark. Financials had a strong showing as the KBW Bank index high a fresh 3-month high. JP Morgan is closing in on a new record high. Nearly all sectors in the S&P 500 index were higher, led by Materials and Industrials, Utilities bucked the trend. US Exiting Home sales slipped, but the decline was less than expected.
Coke Beat’s the Street
Shares of the company jumped more than 5% on Tuesday at the beverage giant’s shares are up 14% in 2019. The company reported earnings per share of 63 cents, adjusted, versus 61 cents expected. Revenue came in at $10 billion versus $9.99 billion expected. The beverage giant reported net income of $2.61 billion, up from $2.32 billion, or 54 cents per share, a year earlier. Excluding items, Coke earned 63 cents per share, topping the 61 cents per share expected by analysts. Net sales rose 6% to $10 billion, narrowly beating expectations of $9.99 billion. Coke raised its full-year outlook for revenue and now expects organic revenue growth of 5% rather than 4%.
United Technologies Beat
United Technologies reported that Q2 net income came in at $1.9 billion, down from $2 billion a year earlier. Adjusted earnings of $2.20 a share was above the $2.05 a share average estimate from analysts. Revenue rose to $19.63 billion from $16.7 billion. The company said it sees its adjusted earnings projections for 2019 rising to between $7.90 to $8.05 a share, up from previous guidance of $7.80 to $8 a share. Sales expectations remain the same at $75.5 billion to $77 billion, the company said.
US Home Sales Slipped
US Existing home sales declined by more than forecast in June as a dearth of homes pushed prices to a record high. According to the National Association of Realtors existing home sales dropped 1.7% to an annual rate of 5.27 million units last month. May’s sales pace was revised higher to 5.36 million units from the previously reported 5.34 million units. Expectations were for existing home sales to ease by 0.2% to a rate of 5.33 million units in June. The weakness in housing comes despite cheaper mortgage rates. Supply has continued to lag, as home builders have refrained from building lower-price homes because of land and labor shortages.