US close: Markets finish higher as trade concerns take back seat
Stocks finished Monday’s session higher in the US, with investor sentiment boosted by gains overnight on most Asian bourses ahead of the second quarter earnings season kicking off on Wall Street on Friday.
The Dow Jones Industrial Average finished ahead 1.31% at 24,776.59, the S&P 500 rose 0.88% to 2,784.17, and the Nasdaq 100 added 0.95% to 7,276.00.
Global banking giants Citi and JP Morgan were scheduled to update shareholders on Thursday in what analysts said might turn out to be another bumper quarter for company earnings, although some observers were instead highlighting that the second quarter might mark the peak in earnings growth for the current cycle.
According to the analyst consensus, S&P 500 firms' profits were forecast to grow by 20% year-on-year, just a tad below the 22% pace seen over the first three months of the year.
In a research note sent to clients on 3 July, strategists at Bank of America-Merrill Lynch told clients they forecast earnings per share would come in “modestly better” than analysts expected at 22% year-on-year.
They said that would supported by “very strong” results from early reporters, positive - though decelerating - US data surprises, better-than-expected US GDP growth, and strong ISM indices.
“Analysts are also still revising up estimates heading into earnings season; typically they cut estimates by around 3% in the prior three months,” the strategists said.
“Sales growth is expected to remain healthy at 8% year-on-year, similar to in the first quarter.
“A weaker average US dollar relative to the year-ago quarter should contribute about one percentage point to year-on-year sales growth, and higher oil prices … should also benefit growth.”
No major economic reports were scheduled for release on Monday.
In corporate news, Tesla gained 3.11% after it hiked the price on its Model S sedan and Model X SUV by 20% in the wake of the country's recently-enacted counter-tariffs.
Meanwhile, Anadarko Petroleum grew 2.06% after it added $1bn to its share repurchase programme, taking its total size to $4bn.
Groupon shares surged 10.78% after a report that it could be seeking a buyer, and Baidu stocks gained 4.05% as KeyBanc and Credit Suisse turned bullish.
Twitter plunged 5.4%, following the release of a report that pointed to an increased level of account suspensions.
Dow Jones - Risers
Caterpillar Inc. (CAT) $140.96 4.11%
JP Morgan Chase & Co. (JPM) $107.28 3.09%
Goldman Sachs Group Inc. (GS) $227.99 2.80%
Boeing Co. (BA) $341.92 2.18%
Travelers Company Inc. (TRV) $125.40 1.80%
Walmart Inc. (WMT) $85.94 1.68%
3M Co. (MMM) $200.53 1.55%
Chevron Corp. (CVX) $125.99 1.49%
American Express Co. (AXP) $99.91 1.41%
Apple Inc. (AAPL) $190.58 1.39%
Dow Jones - Fallers
Procter & Gamble Co. (PG) $77.86 -1.83%
Verizon Communications Inc. (VZ) $50.75 -1.44%
Coca-Cola Co. (KO) $44.40 -0.54%
Merck & Co. Inc. (MRK) $62.03 -0.29%
Cisco Systems Inc. (CSCO) $42.67 -0.09%
Pfizer Inc. (PFE) $37.16 0.13%
Johnson & Johnson (JNJ) $126.09 0.24%
McDonald's Corp. (MCD) $159.94 0.33%
Microsoft Corp. (MSFT) $101.85 0.68%
Exxon Mobil Corp. (XOM) $82.89 0.69%
S&P 500 - Risers
Diamond Offshore Drilling Inc. (DO) $20.70 4.81%
Noble Energy Inc. (NBL) $36.82 4.57%
Transocean Ltd. (RIG) $13.75 4.32%
Mallinckrodt Plc Ordinary Shares (MNK) $20.77 4.27%
Caterpillar Inc. (CAT) $140.96 4.11%
MetLife Inc. (MET) $45.47 3.98%
Capital One Financial Corp. (COF) $96.56 3.94%
Marathon Oil Corp. (MRO) $21.92 3.89%
United Rentals Inc. (URI) $155.11 3.73%
Bank of America Corp. (BAC) $29.07 3.64%
S&P 500 - Fallers
PPL Corp. (PPL) $28.10 -5.01%
FirstEnergy Corp. (FE) $35.32 -3.94%
Pinnacle West Capital Corp. (PNW) $79.48 -3.94%
American Electric Power Co. Inc. (AEP) $68.87 -3.76%
CMS Energy Corp. (CMS) $46.78 -3.73%
Duke Energy Corp. (DUK) $78.65 -3.65%
Centerpoint Energy Inc. (CNP) $26.92 -3.65%
DTE Energy Co. (DTE) $103.15 -3.63%
Amer Water Works (AWK) $85.29 -3.62%
Wisconsin Energy Corp. (WEC) $64.03 -3.58%
Nasdaq 100 - Risers
Baidu Inc. (BIDU) $261.97 4.05%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $250.70 3.33%
American Airlines Group (AAL) $39.31 3.20%
Tesla Inc (TSLA) $318.51 3.11%
Fastenal Co. (FAST) $49.62 2.92%
Netflix Inc. (NFLX) $418.97 2.63%
NetEase Inc. Ads (NTES) $267.57 2.44%
CSX Corp. (CSX) $66.50 2.31%
O'Reilly Automotive Inc. (ORLY) $289.38 2.27%
Western Digital Corp. (WDC) $79.68 2.25%
Nasdaq 100 - Fallers
Take-Two Interactive Software Inc. (TTWO) $121.97 -1.19%
Ctrip.Com International Ltd. Ads (CTRP) $45.16 -1.07%
Mercadolibre Inc. (MELI) $309.77 -1.00%
Biogen Inc (BIIB) $354.00 -0.97%
Check Point Software Technologies Ltd. (CHKP) $102.00 -0.79%
Kraft Heinz Co. (KHC) $63.97 -0.71%
Texas Instruments Inc (TXN) $112.09 -0.55%
Express Scripts Holding Co (ESRX) $79.63 -0.55%
Vodafone Group Plc ADS (VOD) $25.20 -0.47%
Alexion Pharmaceuticals Inc. (ALXN) $131.58 -0.47%