U.S. market indexes were higher on Tuesday as stocks seem to have recovered from the Brexit news last week.
For the day the Dow Jones Industrial Average closed at 17,409.72 for a gain of 269.48 or 1.57%. The Standard & Poor's 500 was also higher, closing at 2,036.09 for a gain of 35.55 points or 1.78%. The Nasdaq Composite closed higher at 4,691.87 for a gain of 97.42 points or 2.12%. The VIX Volatility Index was lower at 18.89 for a loss of 4.96 points or 20.80%.
In the Dow Jones Industrial Average, stocks leading gains included the following:
- Travelers Companies (TRV, Financial) 3.43%.
- JPMorgan (JPM, Financial) 3.32%.
- Visa (V, Financial) 2.48%.
- ExxonMobil (XOM, Financial) 2.31%.
- Nike (NKE, Financial) 2.31%.
- Home Depot (HD, Financial) 2.29%.
- General Electric (GE, Financial) 2.11%.
- Microsoft (MSFT, Financial) 2.09%.
The day’s GDP report helped stocks as they recovered from the Brexit news. The Commerce Department released its final estimate of GDP for the first quarter along with the accompanying corporate profits report. GDP was revised up to 1.1% SAAR, and corporate profits decreased 2.3% year over year. The reports showed some improvement overall for the U.S. economy. The GDP estimate was revised up in its final report. Corporate profits, while down year over year, were still improved from the comparable report of -3.6%. Consumer confidence was also reported Tuesday. The Conference Board’s Consumer Confidence Index increased to 98 from 92.4.
On Tuesday, Nike reported its earnings for the fourth quarter. The company reported revenue of $8.24 billion, an increase of 5.9% from the comparable quarter. Earnings per share were 49 cents.
Nike is the first of the Dow Jones Industrial Average companies to report earnings with most second-quarter earnings reports beginning the week of July 11.
As Nike reports earnings and Brexit factors influence stocks, market speculators are beginning to focus on how earnings will be affecting the economy’s growth in the second half of the year.
In a CNBC report Tuesday, market specialists discussed the broader affects of Brexit and reported overall that earnings in the U.S. will probably not see major losses from the U.K.’s vote.
Disclosure: I do not own any shares of any stocks included in this article.
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