US Stock Market Overview – Stock Rally Led by Robust Earnings

Coke and United Technologies buoy US equities
David Becker

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.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.