Stocks on major world markets hit their highest in more than a month on Tuesday, on good earnings reports from U. S. companies and after China promised fiscal action to support the world’s second-largest economy.
NEW YORK (Reuters) – Stocks on major world markets hit their highest in more than a month on Tuesday, on good earnings reports from U. S. companies and after China promised fiscal action to support the world’s second-largest economy.
MSCI’s global stock index gained 0.58 percent.
The focus in the United States remained the banner corporate earnings reporting season which is in its busiest week for the quarter.
To date, 83 percent of the 110 S&P 500 stock index companies that have posted results have beaten profit estimates, according to Thomson Reuters I/B/E/S.
“The results have been quite strong so investors have been a little more exuberant than they were at the end of June when the headlines were less about companies beating earnings than about the Trump administration beating the tariff trade drum,” said Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors.
Stellar earnings from Google parent Alphabet, reported late Monday, also helped the U. S. technology sector stocks index to gain 0.5 percent.
Alphabet Inc, part of the so-called FAANG group of popular tech stocks that have led the U. S. market’s near-decade bull run, jumped gained 3.89 percent to a record high after a better-than-expected quarterly revenue jump.
The Dow Jones Industrial Average rose 197.65 points, or 0.79 percent, to 25,241.94, the S&P 500 gained 13.42 points, or 0.48 percent, to 2,820.4 and the Nasdaq Composite dropped 1.11 points, or 0.01 percent, to 7,840.77. [. N]
Metals and oil prices surged thanks to hopes for Chinese tax cuts and a lower yuan.
