Markets Right Now: Tech, energy stocks lead indexes higher

Marco Green
July 12, 2018

Traders work on the floor of the New York Stock Exchange in New York, US.

US stock index futures rose on Tuesday, as focus turned to the USA corporate earnings season that kicks off this week, while worries of a trade dispute took a back seat in the wake of encouraging economic data.

The S&P financial index rose 1.3 percent, providing the biggest boost to the main S&P index.

Although there are no immediate signs he US-China trade war is escalating, the key geopolitical risk is whether the United Kingdom is headed for a leadership challenge. The two countries slapped tit-for-tat tariffs on $34 billion of each other's goods on Friday.

Exxon Mobil and Boeing each rose 1.2 per cent in early trading Tuesday.

"Last Friday's gains managed to put a positive patina on what was otherwise a rather unimpressive week for equity investors", Peter Kenney, senior market strategist at Global Markets Advisory Group in NY, wrote in a note.

S&P 500 e-mini futures ended the session down 0.1 percent and were off 0.8 percent after trading resumed for the overnight session.

The S&P 500 rose 9 points, or 0.3 per cent, to 2,793. But the benchmark S&P 500 closed up 0.84 percent on Friday as many analysts said the move was already priced in, but warned that further escalation could dent the appetite for stocks.

US analysts' estimates for S&P 500 second-quarter profit growth have risen slightly since April, putting the latest forecast at around 21 percent, according to Thomson Reuters data. It is now up 4.5 percent since the end of 2017 and is less than 3 percent from its January 26 record high.

JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc are scheduled to report results on Friday, kicking off the second-quarter earnings season in earnest. Their shares dipped on Tuesday after leading market gains on Monday.

Higher oil prices lifted energy shares.

Tesla was up 1.6 percent after automotive news website Electrek reported the company hiked prices of its Model X and S cars by over $20,000 in China due to tariffs.

Advancing issues outnumbered declining ones on the NYSE by a 1.77-to-1 ratio; on Nasdaq, a 1.65-to-1 ratio favored advancers.

The S&P 500 posted 30 new 52-week highs and no new lows; the Nasdaq Composite recorded 104 new highs and 26 new lows.

About 6.0 billion shares changed hands on USA exchanges.

Other reports by Click Lancashire

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