Major US stock indices rose moderately, as investors reacted positively to quarterly reports and forecasts of companies such as Coca-Cola and United Technologies. The market was also supported by news that US trade negotiators will travel to Shanghai on Monday for talks.

Coca-Cola (KO; + 6.22%) reported receiving quarterly profit of $ 0.63 per share, which was above the analysts' average forecast of $ 0.61. The company's revenue also exceeded forecasts, and Coca-Cola raised its annual revenue forecast due to increased demand for some new soft drinks and coffee.

United Technologies (UTX) reported a profit of $ 2.20 per share, which turned out to be $ 0.15 above the analysts' average forecast. In addition, conglomerate revenue slightly exceeded Wall Street's estimate, and United Technologies raised its forecast for key financial indicators for the entire year, as it benefits from the purchase of Rockwell Collins.

Meanwhile, the quarterly earnings of Travelers (TRV) for the reporting period reached $ 2.02 per share, which turned out to be lower than the average forecast of analysts at $ 2.30. The revenue of the insurance company exceeded forecasts for higher net investment income and premiums, but the insurer also saw higher losses from non-weather accidents than it was a year earlier. Shares of TRV sank 1.61%.

Over 18% of S & P 500 companies have already published quarterly figures for the second quarter. According to FactSet, of these companies, 78% showed higher than expected earnings for the last reporting period. After a strong start to the corporate reporting season, interviewed by Refinitiv, they now predict that the profits of the S & P 500 companies will increase by about 1% y / y, whereas they had previously expected a slight decline.

Another positive thing for the market was the announcement of an agreement between President Trump’s administration and Congress leaders on the country's budget for fiscal years 2020–2021 and an increase in the national debt ceiling. This agreement will help to avoid a technical default of the government at the end of this year, but will increase the budget deficit.

Meanwhile, some pressure on the market has been reported that the International Monetary Fund (IMF) has again lowered its forecast for global economic growth, as the trade war between the US and China continues, Brexit fears persist, and inflation remains restrained. The fund now expects the world economy to grow by 3.2% in 2019, while in April it predicted a growth of 3.3%. The IMF also warned that a further increase in tariffs by the United States and China, the introduction of tariffs on imported cars or indiscriminate Brexit may slow down growth even further. 

Most of the components of DOW finished trading in positive territory (24 out of 30). The growth leader was The Coca-Cola Co. (KO; + 6.22%). Outsiders were The Travelers Companies (TRV; -1.61%).

Almost all sectors of the S & P recorded an increase. The industrial goods sector grew the most (+ 1.2%). Only the utility sector decreased (-0.2%).

At the time of closing:

Dow 27,349.19 +177.29 + 0.65%

S & P 500 3,005.48 +20.45 + 0.69%

Nasdaq 100 8,251.40 +47.27 + 0.58%

U.S. stock-index futures rose on Tuesday, supported by a number of better-than-expected earnings reports from companies, including Coca-Cola (KO) and United Technologies (UTX), that soothed concerns over the pace of economic growth.

Global Stocks:

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

Intel (INTC) initiated with a Hold at The Benchmark Company

Snap (SNAP) upgraded to Buy from Hold at Stifel; target raised to $17

United Tech (UTX) reported Q2 FY 2019 earnings of $2.20 per share (versus $1.97 in Q2 FY 2018), beating analysts’ consensus estimate of $2.05.

The company’s quarterly revenues amounted to $19.634 bln (+17.5% y/y), generally in line with analysts’ consensus estimate of $19.583 bln.

The company also raised guidance for FY 2019, projecting EPS of $7.90-8.05 (prior $7.80-8.00) versus analysts’ consensus estimate of $7.96 and organic sales growth +4-5% (prior +3-5%).

UTX rose to $136.50 (+2.67%) in pre-market trading.

Travelers (TRV) reported Q2 FY 2019 earnings of $2.02 per share (versus $1.81 in Q2 FY 2018), missing analysts’ consensus estimate of $2.30.

The company’s quarterly revenues amounted to $6.988 bln (+4.4% y/y), generally in line with analysts’ consensus estimate of $7.030 bln.

TRV fell to $148.95 (-0.51%) in pre-market trading.

Coca-Cola (KO) reported Q2 FY 2019 earnings of $0.63 per share (versus $0.61 in Q2 FY 2018), beating analysts’ consensus estimate of $0.61.

The company’s quarterly revenues amounted to $9.997 bln (+6.1% y/y), beating analysts’ consensus estimate of $9.858 bln.

The company also reaffirmed FY 2019 EPS growth -1%-1% growth versus $2.08 in 2018(versus analysts’  consensus estimate of $2.10) and raised FY 2019 organic revenue growth to +5% from +4%.

KO rose to $52.50 (+2.50%) in pre-market trading.