Stocks close higher ahead of State of the Union address
CNBC
2/5/2019
- Ivanka Trump says she passed on father’s offer for World Bank top jobWhite House senior adviser Ivanka Trump, who has made her way back to the U.S. after a visit to Africa, is making headlines for stating in an interview that her father, President Trump, asked her to lead the World Bank. NBC’s Peter Alexander reports for TODAY.
NBC News
- San Francisco airport dealing with homeless crisis, authorities saySan Francisco isn’t only dealing with a homeless crisis in the city but also at the airport. Veuer’s Mercer Morrison has the story.
Veuer
- France to rebuild the Notre Dame CathedralFrench president Emmanual Macron has said he wants the Notre Dame Cathedral to be rebuilt within five years, according to the Washington Post.
Next Media Animation via Reuters
Post-Market Wrap: February 05, 2019
CNBC1:10Ivanka Trump says she passed on father’s offer for World Bank top job
NBC News1:55San Francisco airport dealing with homeless crisis, authorities say
Veuer1:11France to rebuild the Notre Dame Cathedral
Next Media Animation via Reuters1:01How Pinterest makes money by filling your feed with promoted pins
CNBC0:00Class-action suit accuses Apple of covering up slow iPhone sales
Newsy1:09Fact check: Do McDonald's workers really only earn $7,000 a year?
The Washington Post2:26Family hit with $3,700 bill for out-of-network anesthesiologist
CBS News2:21
California city tests universal basic income program
Fox Business6:22Why criminals are buying old tax returns online
CBS News1:01NYC considering ban on fur sales
Veuer0:42Inside Sneaker Con: 500% markups and millions in profit
The Wall Street Journal.6:19You can rent this spectacular Manhattan apartment for $500,000 per month
CNBC1:08What jobs are at risk from the rise of robots?
Fox Business3:50Amazon urged to halt selling facial recognition tech
USA TODAY2:17Global economy: China eases growth worries (but not Germany)
Reuters1:49
Stocks ended higher Tuesday as the corporate earnings season rolled on and as traders awaited President Donald Trump's State of the Union address.
The Dow closed 172 points higher, led by Apple and Intel. The Nasdaq gained 0.74 percent, while the S&P 500 added 0.47 percent on the back of gains from the tech and consumer sectors.
Alphabet, Seagate Technology and Estee Lauder are among the companies that have reported better-than-expected earnings. However, Alphabet traded slightly lower as the company also revealed declining advertising prices and rising costs. Seagate shares also dipped 1 percent.
Estee Lauder, meanwhile, jumped 12 percent on better-than-expected results. The company also raised its 2019 earnings guidance. Archer-Daniels Midland fell 6.7 percent after reporting weaker-than-expected earnings and revenue.
Nearly half of S&P 500 companies have reported earnings through Tuesday morning, with about 70 percent of those companies topping analyst expectations, according to The Earnings Scout.
"However, the beat rates are running below last quarter as the overall year-over-year rates of sales and earnings growth has decelerated," said Nick Raich, CEO of The Earnings Scout, in a note to clients. "Most importantly, 1Q 2019 through 3Q 2019 S&P 500 EPS growth expectations continue to go lower with some providers already showing negative growth."
FactSet data show that corporate earnings for the first quarter are expected to decline by 0.8 percent. Raich said, however, he expects earnings to continue growing in the first half of 2019. He added the negative estimates are mostly a byproduct of "low-balled estimates."
Disney, Electronic Arts, Snap and Spirit Airlines are among the companies scheduled to report after the bell Tuesday.
Wall Street also looked ahead to the State of the Union, which comes more than a week after the longest government shutdown in U.S. history came to an end. Investors should be looking for clues on a number of matters, including U.S.-China trade talks.
"We expect an optimistic tone on President Trump's desire to strike a deal, but we remain cautious that these headlines are likely to whip around during any verification or enforcement phase," Ed Mills, public policy analyst at Raymond James, wrote in a note to clients.
The president could also make comments on drug pricing during the speech, as well as a possible infrastructure bill. Some stocks to watch heading into the speech include Fluor Corp, Jacobs Engineering, chipmaker Qorvo and Wynn Resorts, according to Strategas Research Partners.
But while Trump could strike a bipartisan approach on both of those fronts — which would be bullish for the market — the stalemate over the U.S.-Mexico border wall with Democrats could undercut that.
Isaac Boltansky, director of policy research at Compass Point, said Trump will likely dedicate a good chunk of his speech to his wall proposal. "We believe there will be an outsized focus on the border wall and the president could use this forum to build his case for unilateral administrative action on the wall (e.g., national emergency declaration)," Boltansky wrote in a note.
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