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US stocks climb as stimulus optimism offsets weak earnings - Business Insider

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Trader NYSE greenLucas Jackson/Reuters

  • US stocks rose on Tuesday as investors weighed ongoing hopes of further coronavirus stimulus against a string of disappointing corporate earnings results.
  • Shares of AIG, Bayer, and Diageo slipped in Europe after reporting earnings.
  • Read more on Business Insider.

US stocks gained on Tuesday as investor optimism around another round of coronavirus stimulus outweighed a string of disappointing earnings results.

Traders are awaiting further news on negotiations about another aid package. Democrats and Republicans are still debating an extension of the $600 weekly federal unemployment benefit. Democrats want to extend the benefit, while Republicans want to lower the weekly amount.

The clock is ticking for the two sides to come to an agreement, as the Senate is scheduled to leave for a summer break on Friday. The government is also set to release its July nonfarm-payrolls report that day.

Here's where US indexes stood shortly after the 4 p.m. ET market close on Tuesday:

Read more: 100 deals and $1 million in profit a year: Here's how Mike Simmons made a simple change to his real-estate investing strategy that took him from small-time house flipper to full-fledged mogul

Shares of AIG slumped after the company reported that quarterly adjusted earnings plummeted 56% because of catastrophe and private-equity losses.

Bayer also fell after saying it slipped to a net loss in the second quarter because of a settlement over a lawsuit alleging that its Roundup herbicides caused cancer. The company also lowered its outlook because of the coronavirus pandemic.

Diageo — the maker of Guinness beer, Smirnoff vodka, and Johnnie Walker whiskey — fell after the company said the pandemic had weighed on sales, sending operating profit down in the quarter.

Read more: Fund manager Tom O'Halloran quadrupled investors' money in 9 years by betting on super high-growth companies. He explains his approach, and why new technologies could make the next decade even more prosperous than the 2010s.

Still, there were some bright spots in earnings. Shares of BP jumped after the company cut its dividend for the first time in a decade. Take Two Interactive, the company behind video games such as "Grand Theft Auto," rose after saying sales more than doubled in the quarter and raising its full-year forecast.

The recent rally in technology shares, which sent the Nasdaq to a record close on Monday, took a breather. Shares of Microsoft and Facebook close lower.

Gold surged to a record, topping $2,000 for the first time ever on stimulus hopes. 

Oil rose. West Texas Intermediate crude rose as much as 2.6%, to $42.08 per barrel. Brent crude, the international benchmark, gained 1.5%, to $44.82 per barrel, at intraday highs.

Read more: Fund manager Tom O'Halloran quadrupled investors' money in 9 years by betting on super high-growth companies. He explains his approach, and why new technologies could make the next decade even more prosperous than the 2010s.

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