Major US stock indices have predominantly increased, as investors expected clues about the Fed’s next step in monetary policy. However, concerns remained about the potential damage to corporate segment profits from a trade dispute between the United States and China,

The latest sign of a negative impact of trade disputes on business was the warning of the German chemical giant BASF about the likely 30% decrease in adjusted annual profits due to a slowdown in global growth and a protracted trade war, which affected the agricultural sector, as well as global car manufacturing and sales. In addition, analysts RBC Capital Markets downgraded the company 3M Co. (MMM; -2.03%) to the level of “Sector perform” from “Outperform”, citing concerns about the macroeconomic situation.

The United States and China intend to resume trade negotiations this week after a two-month break, but even a year after the start of the trade war, little indicates that their differences have softened.

The season of publication of corporate reporting for the second quarter of 2019 will start next week. According to IBES Refinitiv, analysts expect the profits of the S & P 500 companies to show a decline of 0.2% y / y in the reporting period.

On Wednesday, a two-day congressional hearing will start with the participation of the Fed Chairman, Jerome Powell, who will submit a semi-annual monetary policy report. In addition, tomorrow will be announced minutes of the June Fed meeting. In the comments of the Fed, investors will look for clues about whether the Fed will cut rates at the end of this month, or whether the Fed believes the economy is strong enough to withstand current policies.

Most of the components of DOW recorded a decline (17 of 30). Verizon Communications Inc. was an outsider. (VZ; -2.45%) The growth leader was Merck & Co. (MRK; + 1.01%).

Most sectors of the S & P finished trading in the red. The largest decline was shown by the consumer goods sector (-0.6%). The technological sector grew the most (+ 0.3%).

At the time of closing:

Dow 26,783.49 -22.65 -0.08%

S & P 500 2,979.63 +3.68 +0.12%

Nasdaq 100 8,141.73 +43.35 +0.54%

U.S. stock-index futures fell moderately on Tuesday as investors awaited several Fed officials to speak throughout the session. 

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Apple (AAPL) target raised to $239 from $233 at JPMorgan

3M (MMM) downgraded to Sector Perform from Outperform at RBC Capital Mkts; target lowered to $176

PepsiCo (PEP) reported Q2 FY 2019 earnings of $1.54 per share (versus $1.61 in Q2 FY 2018), beating analysts’ consensus of $1.51.

The company’s quarterly revenues amounted to $16.449 bln (+2.2% y/y), generally in line with analysts’ consensus estimate of $16.440 bln.

The company reaffirmed guidance for FY 2019, projecting EPS of $5.50 versus analysts’ consensus estimate of $5.53.

PEP rose to $134.00 (+1.09%) in pre-market trading.