Dow jumps more than 200 points, Target and Lowe's surge on strong earnings; European stocks close higher as investors await Fed minutes
Stocks rose on Wednesday as strong quarterly results from retailers such as Target and Lowe's lifted investor sentiment. The Dow Jones Industrial Average closed 240.29 points higher, or 0.9%, at 26,202.73. The S&P 500 gained 0.8% to close at 2,924.43. The Nasdaq Composite jumped 0.9% to 8,020.21. The major indexes held on to their gains even after the bond market flashed a recession signal in the last hour of trading.
Target shares surged more than 20% to a record after the retailer posted second-quarter results that topped analyst expectations. The company's same-store sales, a key metric for retailers, expanded by 3.4%. Analysts expected growth of 2.9%.
Lowe's jumped 10.4% on its second-quarter earnings report. CEO Marvin Ellison said the company capitalized on strong "holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results."
European stocks closed higher Wednesday as investors awaited minutes from a meeting of the U.S. Federal Reserve, while President Donald Trump suggested he was weighing measures to boost the world’s largest economy.
The pan-European Stoxx 600 closed provisionally up over 1.1% , autos leading gains with a 1.7% jump as all sectors and major bourses traded firmly in positive territory.
Shares of Renault and Fiat Chrysler Automobiles both gained after an Italian press report suggested contact between executives at both firms has never ceased and a merger remains on the cards. Renault stock climbed 3.7% while Fiat Chrysler was up 3.3%.
Government plans to reduce tax burden on wages
The Serbian government is planning to reduce the tax burden on wages by a minimum 1 pct this year, Finance Minister Sinisa Mali announced Tuesday, adding that the objective was to reduce the burden on wages every year to make the Serbian economy more competitive. The burden on wages was 63 pct two years ago and has now been reduced to 62 pct, and the trend will continue, he said in an appearance on Pink TV.
Agreement with CRBC on construction of Fruska Gora Corridor to be signed by Spring 2020
Funds from the National Investment Plan (NIP), worth around EUR 12 billion will be also allocated for realization of important projects including Novi Sad – Ruma motorway, known as Fruska Gora Corridor. The delegation of the Provincial Government, led by Igor Mirovic brought around 40 projects with building permits to the meeting in Belgrade. The projects will be realized in the next five years with the financial support from the Government of Serbia. Investment value of the Fruska Gora Corridor, per earlier data, amounts to around EUR 400 million. The section to be constructed is extremely burdened by traffic. Around 8,500 vehicles passes over it on the daily, 20 % of which are heavy-duty vehicles.
Knjaz Milos acquired by Mattoni 1873, PepsiCo
Mattoni 1873 and PepsiCo on Tuesday completed an acquisition of a 100 pct stake in Serbian mineral water and non-alcoholic beverages producer Knjaz Milos. The transaction, which has been approved by the antitrust commission, includes an acquisition of Knjaz Milos's production facilities in Serbia, as well as the Knjaz Milos, Aqua Viva, Guarana, ReMix Knjaz, Tube and Gusto brands, among others. Knjaz Milos was previously owned by the Mid Europa Partners investment fund.