- More companies release strong earnings reports
- Turkish Lira recovers some of its earlier losses
- Tapestry delivers best performance on S&P 500
US stock markets strengthened yesterday as more companies announced robust quarterly reports, boosting optimism over earnings. Bank stocks also recovered some of their earlier losses after the Turkish Lira experienced a rebound.
The Lira’s recovery came after the Turkish central bank announced measures to reduce pressure on the currency. This caused it to surge around 7% against the USD.
Stock prices of American lenders Goldman Sachs, Bank of America, Wells Fargo, JP Morgan and Citigroup strengthened by as much as 0.7%.
Robert W. Baird Managing Director of Institutional Sales Trading Michael Antonelli said: “The Turkey currency crisis isn’t going to grow any bigger [and] the markets are good at pricing things like this.”
He added that the market was now once again focusing on US earnings reports and economic data instead of on Turkey.
Tapestry surged by 9.7% after robust sales of its Kate Spade handbags exceeded expectations, and Advance Auto Parts rose 7.5% after announcing a share buyback program and beating quarterly profit estimates.
The Q2 earnings season is leveling off, with 79% of the 455 firms in the S&P 500 that have issued reports so far exceeding analysts’ expectations.
Just before 10 am EDT, the Dow Jones Industrial Average was 46.60 points higher, the S&P 500 was up by 8.22 points, and the Nasdaq Composite had gone up by 11.5 points. All 11 of the most important S&P 500 sectors were trading higher.
Energy shares strengthened by 0.61% and technology shares also strengthened after Nvidia’s share price rose by 1.9%.
Stock markets appeared to ignore comments by Turkish President Erdogan that the nation would boycott US electronic products such as the iPhone.
On the NYSE, the ratio of advancing issues to decliners was 3.29 to 1, and it was 2.08 to 1 on Nasdaq.