Markets Rise On Earnings, Boris Johnson Tapped For UK PM, Chips Lead In AsiaGlobal markets are up on earnings results but outlook for central bank meetings is capping gains.
The U.S. Futures Are Up In Early Tuesday Trading
The U.S. futures are up in early Tuesday trading as earnings lift sentiment. Earnings season is in high gear this week with more than 25% of the S&P 500 reporting. So far the reports are good and today’s news is filled with better than expected EPS reports. The major indices are all up about 0.30% but tech is in the spotlight. A report hit the market yesterday stating Apple is in talks to buy Intel’s modem-chip operation and that has the entire chip/Apple supply-chain moving higher. Shares of Intel are up 1.1% on the news.
Shares of Coca Cola rose nearly 2.0% after the global beverage and snacks company reported better than expected revenue and earnings. United Technologies is also up in early trading, advancing more than 2.0%, after it reported strong results. Harley Davidson is among the few laggards in today’s market. The company is struggling with revenue and earnings growth; shares fell nearly -2.0% after the news was announced. Visa, Chipotle Mexican Grill, and Snap all report after the closing bell today.
In political news, the White House has reached a spending deal with key Congressional members. The deal would provide increased debt limits and spending levels for the next two years. The deal now goes to the floor of the House and Senate for approval.
Boris Johnson For The Win
Boris Johnson won weeks of voting to emerge as the UK’s new Prime Minister. Johnson, a well-known Euro-skeptic, has pledged to take the UK out of the EU in October with or without a deal. Now that he is PM the Parliament has only three months to reach a decision; take the EU’s deal, come up with a deal the EU will like, or exit without a deal. Based on past comments from the EU there will be no more negotiating, that may not be true once the EU’s new leadership takes office.
The DAX is in the lead at midday with a gain of 1.70%. The French CAC is in second place with a gain of 0.95% while the FTSE is lagging at 0.63%. Autos were the hottest sector of the morning. The group advanced nearly 4.0% after Faurecia beat revenue and earnings consensus. The news was compounded by an upgrade of BMW from Morgan Stanley that lent general strength to the industry.
Chipmaker AMS also beat expectations. AMS is an Apple supplier, its results have that complex moving higher as well. Logitech beat its consensus and sent its shares up 7.8%. In the financial sector, UBS and Santander both reported better than expected and helped lift that group as well.
Asian Markets Are Up On Earnings, Central Banks Cap Gains
Asian markets are up on earnings results but a round of upcoming central bank meetings capped gains. The Nikkei led with an advance of 0.95% with chips at the top of the rankings. The Australian ASX is runner up at 0.50% with most other indices close behind. In China, most STAR market stocks fell on Tuesday giving up the big gains seen on Monday.