By Benjamin J. Chuckrow
Tuesday, July 23, 2019 – U.S. futures are pointing to a higher open higher Tuesday as investors digest corporate earnings results. The Dow and S&P 500 are both rising 0.4% in pre-market action, while the Nasdaq 100 is trading 0.4% above fair value on the GLOBEX. Positive developments from Washington are also providing a tailwind, as President Trump said he would support a deal to suspend the federal borrowing limit and increase government spending for two years.
In earnings, Coca-Cola is surging 3.7% after the beverage maker topped analyst profit estimates and lifted its organic full-year revenue guidance. United Technologies is advancing 2.3% after the aerospace giant delivered a top and bottom line beat and raised its 2019 outlook. Lockheed Martin is up 1.5% after the defense contractor posted positive results. Travelers is sliding 1.5% after missing Wall Street earnings expectations.
On the data front, existing home sales are projected to have dipped 0.4% in June, while the FHFA House Price Index is anticipated to show a 0.4% increase in May. Market participants will also digest an update on the manufacturing sector from the Richmond Fed. Treasuries are mixed, with the yield on the 10-year note down one basis point to 2.04%. In commodities, WTI crude losing 0.6% to $55.91/barrel amid demand concerns.
Overseas, European bourses are advancing with the Euro STOXX 600 climbing 1.1%. The U.K.’s FTSE 100 is jumping 1% after Boris Johnson easily won the election to succeed Theresa May as Prime Minister. Overnight in Asia, China’s Shanghai Composite gained 0.5%, while Japan’s Nikkei 225 rallied 1%.
This information was prepared by or obtained from sources that Wells Fargo Advisors believes to be reliable, but its accuracy is not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the authors as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Contact your Financial Advisor for additional information.
Benjamin J. Chuckrow
Senior Vice President – Branch Manager
Stuyvesant Plaza Complex
Wells Fargo Advisors
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