Earnings’ & trade hope waft Wall St. towards record high

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Earnings’ & trade hope waft Wall St. towards record high

On Tuesday, the 23rd of July, all three key indexes of Wall Street had added robust gains over optimism of a resumption of US-China trade talk as early as by next Monday (July 29th), while a buoyant quarterly earnings’ report of Coca-Cola Co., that lifted its share prices to a record all-time-high had pushed Nasdaq towards a record closing high.

Meanwhile, investors appeared to be Panglossian over progresses on US-China trade talk following White House Trade Adviser Larry Kudlow’s upbeat comments on latest round of face-to-face trade meetings. Besides, S&P 500 gathered momentum at late US trading hours after a Bloomberg report had revealed that a team of US trade negotiators led by US Trade Representative Robert Lighthizer would travel to Shanghai as early as by next Monday (July 29th) in order to participate in a face-to-face trade meeting with Chinese negotiators.

Aside from that, on Monday (July 22nd), US President Donald Trump and leaders of US Congress had reached an accord on a two-year extension of federal spending cap and debt limits, averting risks of a government default later this year and adding further bullish wing to investors’ sentiment amid a strong onset of US corporate earnings’ season.

Nonetheless, undermining impacts of a trade optimism that could sway either way, a Chief Market Strategist at CFRA, Sam Stovall said, “If they disappoint on earnings, that could have a negative impact on (wider) share prices because they represent such a large portion of the market”.

Quoting statistics, on Tuesday’s (July 23rd) Wall Street closure, Dow wrapped up the day 0.65 percent higher to 27,349.19, Nasdaq surged 0.58 percent to 8,251.40, while S&P 500 had breached 3,000 marks again over reinforced investors’ confidence, rounding off the day 0.68 percent higher at 3,005.47.