US Stocks gains on upbeat earnings reports

The US stock market finished session marginal higher on Tuesday, 21 July 2020, thanks to a relatively better than expected second-quarter earnings reports and guidance from companies including IBM and Coca-Cola. Market cut gains in the final hour of trading after hopes faded for a fresh round of fiscal stimulus in the coming week to prop up an economy reeling from the COVID-19 pandemic.

At closing bell, the Dow Jones Industrial Average rose 159.53 points, or 0.6%, to 26,840.40. The S&P 500 index gained 5.46 points, or 0.17%, to 3,257.30. The tech-heavy Nasdaq Composite Index fell 86.73 points, or 0.81%, to 10,680.36

 

Market hopes for a fresh round of fiscal stimulus in the coming week faded after Senator Majority Leader Mitch McConnell told reporters that Congress would most likely not pass a new fiscal stimulus bill this week, before the $600 jobless benefit boost runs out for millions of Americans.

Investors were awaiting for talks in Washington, DC, for signs of further coronavirus relief. Democrats and Republicans are facing pressure to pass more legislation to aid the economic recovery but remain split on key issues.

Shares of Coca-Cola Co rose after reported profits that beat expectations. Also, the Company said demand for its sodas was improving after the "most challenging" quarter for the year.

Shares of International Business Machines Corp jumped after it signaled higher demand in its cloud computing business, as large corporations accelerate their digital shift.

Shares of Lockheed Martin also climbed after reporting profits and sales that beat expectations and lifting its full-year outlook.

Among Indian ADR, HDFC Bank added 1.05% to $52.05, ICICI Bank rose 5.79% to $10.60, Vedanta added 1.72% to $5.90, Tata Motors jumped 3.23% to $7.35, while Dr Reddys Labs was down 0.76% to $54.57, Wipro fell 0.76% to $3.92, WNS Holdings shed 3.82% to $61.21, and INFOSYS fell 0.72% to $12.49.

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