US stocks climb toward record highs on signs of trade progress, earnings optimism
- Major US indexes approached record highs on Tuesday as investors were encouraged by a stronger earnings outlook and progress in the trade dispute between the US and China.
- Trump's trade team will reportedly meet with Chinese officials next week to continue trade negotiations, according to Bloomberg.
- Coca-Cola jumped to a record high after the seventh consecutive quarter of double digit growth for the Coca-Cola Zero brand helped lift the company's second quarter earnings above Wall Street forecasts.
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Major US stock indexes approached all-time highs on Tuesday on reports that President Trump's trade team will travel to China next week to meet with officials.
Bloomberg reported that US Trade Representative Robert Lighthizer and other senior negotiators are expected to be in China through Wednesday to restart high level talks between the two countries. President Trump and Chinese President Xi Jinping hold-off on imposing additional tariffs at the G20 summit in June.
Stocks were also lifted by greater optimism toward corporate earnings as hundreds of companies continued to report second quarter results.
Coca-Cola rose 5% to a record high after reporting second-quarter earnings that beat Wall Street expectations. The soft-drink company attributed its strong results to an increase volume for its landmark Coca-Cola brand and Coca-Cola Zero recording its seventh consecutive quarter of double-digit global growth.
Here's a look at today's closing numbers:
- The S&P 500 rose by 0.66% to 3,005.47.
- The Dow Jones Industrial Average rose by 0.65% to 27,349.19.
- The Nasdaq Composite rose by 0.58% to 8,251.40.
Shares of Curaleaf, the most valuable marijuana company in the US, fell by 15% on Tuesday after the US Food and Drug Administration said that some of the company's products don't have the approval to be sold in the US. The regulator sent a letter to the company on Monday warning that four of its products were being marketed as drugs, and therefore they needed to go through agency approval.
Other major marijuana stocks gained after a key senate hearing on cannabis banking reform wrapped up in Washington, D.C. Tilray, Canopy Growth, and Aurora all rose in intraday trading as the hearing helped support a bill that would allow banks financial institutions work with cannabis businesses.
Within the S&P 500, these were the largest gainers:
- Hasbro: 9.88%
- Sherwin-Williams: 7.72%
- Stanley Black & Decker: 7.36%
And the largest decliners:
- PulteGroup: (-8.33%)
- Lamb Weston: (-5.79%)
- Zion Bancorporation: (-5.68%)
Materials and financials posted the largest gains out of the S&P 500 sectors, while utilites dropped by .65%, recording the only loss in the index.