US open: Positive open on the Street as trade war concerns subside
Stocks started the session moderately higher, with investor sentiment boosted by gains overnight on most Asian bourses ahead of the second quarter earnings seasoning kicking off on Wall Street on Friday.
As of 1530 BST, the Dow Jones was up 0.78% to 24,646.75, while the S&P 500 was 0.43% higher at 2,771.65 and the Nasdaq was 0.22% stronger at 7,505.55.
"Dow Jones up 190 points and at an 18 day peak, as investors sighed with relief at the lack of trade war escalation," said Connor Campbell, financial analyst at Spreadex.
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 had told clients: "We forecast EPS will come in modestly better than analysts expect, 22% YoY, supported by very strong results from early reporters, positive (though decelerating) US data surprises, better-than-expected US GDP growth (which is tracking 3.6% in 2Q vs 2.3% in 1Q), 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. Sales growth is expected to remain healthy at 8% YoY (similar to in 1Q). A weaker average US dollar relative to the year-ago quarter should contribute about 1ppt to YoY sales growth, and higher oil prices-WTI +40% YoY on average-should also benefit growth."
In corporate news, Tesla gained 0.85% in early trading 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 1.30% after it added $1bn to its share repurchase programme, taking its total size to $4bn.
Groupon shares surged 11% after a report that it could be seeking a buyer and Baidu stocks gained 2.97% as KeyBanc and Credit Suisse turned bullish.
Twitter was on track for its worst day since March following the release of a report that pointed to an increased level of account suspensions.
No major economic reports were scheduled for release on Monday.