Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average ended higher after a late-session surge Tuesday on a report that the U.S. and China would resume face-to-face trade talks.
- Shares of Snap (SNAP) rose as the parent company of Snapchat gets ready to report earnings after the bell. Snap is Real Money’s Stock of the Day.
- Coca-Cola (KO) shares climbed after the beverage giant beat Wall Street’s second-quarter earnings and sales forecasts.
Wall Street Overview
Stocks ended higher on a late-session surge Tuesday following a report that the U.S. and China would resume in-person trade talks next week and several stronger-than expected earnings reports.
The world’s two largest economies have been locked in a trade war that has seen 25% tariffs imposed by President Donald Trump on $200 billion of Chinese products. China has retaliated with their own tariffs prompting fears of a global economic slowdown.
Stocks got support earlier in the day from word the White House and leaders from the Senate and House of Representatives reached an agreement on a two-year budget plan that will raise the federal government’s debt ceiling.
If approved by both the House and Senate, the deal likely would avoid a repeat of the government shutdowns that plagued Washington in early 2018 and again at the beginning of 2019.
Wall Street also expects the Federal Reserve to lower interest rates by at least 25 basis points when it meets at the end of July, and economists expect the European Central Bank to cut rates at its meeting Thursday.
The International Monetary Fund said in its World Economic Outlook report that the global economy is expected to expand by 3.2% in 2019, down 0.1 percentage points from its April forecast and 0.3 percentage points below the estimate at the start of the year.
The IMF cited concerns about the ongoing U.S.-China trade war and noted that “global technology supply chains were threatened by the prospect of U.S. sanctions, Brexit-related uncertainty continued, and rising geopolitical tensions roiled energy prices.”
“There were positive surprises to growth in advanced economies,” the report said Tuesday, “but weaker-than-expected activity in emerging market and developing economies.”
Shares of Snap (SNAP) rose 4.8% to $14.83 in the regular session ahead of the company’s latest financial results. Shares surged an additional 10% to $16.32 in after-hours trading following better-than-expected results. Snap is Real Money’s Stock of the Day.