Dow jumps more than 150 points as US-China trade talks to begin next week, Coca-Cola earnings beat; European stocks close higher on strong earnings
Stocks rose Tuesday on news that face-to-face talks between U.S. and Chinese trade negotiators would begin next week. A batch of stronger-than-expected earnings also lifted investor sentiment.
The Dow Jones Industrial Average closed 177.29 points higher, or 0.7%, at 27,349.19. The S&P 500 also advanced 0.7% to close back above 3,000 at 3,005.47. The Nasdaq Composite gained 0.6% to close at 8,251.40.
The major indexes had notched slight gains earlier in the day as investors cheered strong earnings from companies like Coca-Cola and United Technologies.
Coca-Cola shares jumped more than 6% after the company posted earnings and revenue that topped analyst expectations. Coca-Cola pointed to a 4% rise in volume and transactions during the previous quarter in Coke’s namesake brand. Volume from its Zero Sugar line also grew by double digits.
United Technologies, another Dow component, reported better-than-expected quarterly results and its stock gained 1.5%. CEO Gregory Hayes pointed to “outperformance” from its Collins Aerospace division as a driver for the strong quarter. The company also raised its full-year outlook for earnings and organic sales growth. Biogen also reported better-than-expected earnings, sending its stock up 4.9%.
European stocks closed higher Tuesday as investors digested a strong set of corporate results and looked ahead to this week’s European Central Bank policy meeting.
The pan-European Stoxx 600 closed provisionally up by 1%, with the majority of sectors and major bourses in positive territory.
In earnings news, Swiss banking giant UBS beat forecasts with a net profit of $1.4 billion for the second quarter of 2019, marking its best second-quarter performance in nine years. UBS CEO Sergio Ermotti told CNBC’s Joumanna Bercetche the results showed “diversification paid off again.” Shares of the firm were 2.6% higher.
KMBN: IMF finds privatization of Komercijalna Banka crucial to reform of financial system
The International Monetary Fund expects the privatization of Komercijalna Banka to be carried out through transparent bidding and for the call for the collection of non-binding bids to open soon, says the head of the IMF office in Serbia, Sebastian Sosa. Sosa said at a press conference at the National Bank of Serbia that various investors were interested in Komercijalna Banka, whose privatization, as he estimated, was a crucial element of the reform of the Serbian financial system. We are convinced that the process would continue being carried out transparently. At this stage, potential investors are carrying out analyses and have signed agreements on not publishing information – he said.
IMF retains 3.5 pct growth projection for Serbia
The IMF expects to see accelerated economic growth in Serbia until the end of the year and the head of its Belgrade office Sebastian Sosa said Monday it retained a 3.5 pct growth forecast for Serbia in 2019. Sosa told reporters quicker growth required full implementation of reforms and noted that the key steps must be taken without delay. Maintained macroeconomic stability, low inflation and solid public finances are the preconditions for faster economic growth, but this is not sufficient because Serbia needs to carry out structural reforms - in particular those boosting competitiveness and investment - in order to grow faster, he said.
State to invest RSD 300 million in 19 industrial zones in 2019
The Ministry of Economy has set aside around RSD 300 million for the realization of 19 projects in industrial zones of local self-governments, said the state secretary at the Ministry of Economy, Dragan Stevanovic. By equipping industrial zones, each local self-government improves its competitiveness and attractiveness and that's why these projects are important. Through these project, the Ministry of Economy has provided them with the possibility of equipping industrial zones along with the co-financing from the ministry – Stevanovic said for Tanjug.