Small gains expected at Wall Street


The stock markets in New York are expected to start the new trading session with small gains on Tuesday. Trade concerns seem to have faded somewhat and investors are processing a new set of quarterly figures on the business front. The quarterly report from DIY store chain Home Depot showed once again that companies are starting to feel the effects of the American-Chinese trade war.

Optimism about a solution to the trade war seemed to be gaining ground again this week. Earlier it was announced that American restrictions on trade with the Chinese tech and telecom group Huawei will be postponed again, after which stock markets closed with gains on Monday.

Home Depot warned that consumers might spend less money due to American import tariffs. The do-it-yourself chain, which also has to deal with lower timber prices, therefore adjusted the outlook for annual sales downwards.

The maker of medical equipment Medtronic saw in the figures for the past quarter reason to raise expectations for the whole year. The company is now slightly more positive about the adjusted earnings per share, after the turnover in the past reporting period turned out to be higher than expected.

The Chinese search engine giant Baidu, with its stock exchange listing in New York, expects a higher opening. The Google counterpart reported a slight increase in sales, while a decline was expected on the trading floors. Department store chain Kohl’s also came up with quarterly figures.

Elanco, a producer of veterinary drugs made a name for himself on the takeover plane. The company, a former division of Eli Lilly, buys the Bayer veterinary medicine branch. The deal in cash and shares involves $ 7.6 billion.

Beyond Meat is expected to face a higher opening after JPMorgan had increased its advice for the maker of meat substitutes. Computer and printer maker HP Inc. received a recommendation reduction from Citi.

On Monday, the Dow-Jones index closed 1 percent higher at 26,135.79 points. The broad S&P 500 won 1.2 percent to 2923.65 points and tech degree meter Nasdaq rose 1.4 percent to 8002.81 points.

By: Abaigael Schlomski

Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.

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