Stocks traded higher on Tuesday on strong results from Coca-Cola and United Technologies as second-quarter results come in ahead of expectations.
The major markets pared gains after U.S home sales fell more than expected in June as a persistent shortage of properties pushed prices to a record high, suggesting the housing market was struggling to regain its footing since hitting a soft patch last year. The National Association of Realtors said existing home sales dropped 1.7 percent.
Investors also continue to brace for the Federal Reserve’s two-day meeting next week, where the central bank is widely expected to cut interest rates at least by 25-basis points.
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|I:COMP||NASDAQ COMPOSITE INDEX||8200.975538||-3.16||-0.04%|
Meanwhile, the White House and Congress reached on Monday evening a deal to suspend the debt limit through July 2021 and increase spending caps for military and nonmilitary programs for the next two years.
On the earnings front, Coca-Cola netted profits of 63 cents per share in the three months through June, higher than analysts expected. Overall, revenue grew 6 percent to $10 billion, slightly above what Wall Street predicted.
Adjusted net income at United Technologies Corp. grew to $2.20, beating estimates of $2.05 per share, while revenue rose 17.5 percent to $19.63 billion. The Farmington, Connecticut-based firm now expects full-year profits to hit as high as $8.05 per share.
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Intel gained after a report that Apple is in advanced talks to buy its smartphone-modem chip business.
And at Biogen, profits in the second quarter rose to $9.15 per share, significantly topping analyst expectations of $7.53 per share. The biotech firm also raised its full-year profit outlook to a high of $30.40 per share.