Tuesday's Market Minute

  • All three major indices trimmed their gains in the final minutes of trading, but managed to close in the green on strength in tech names.
  • Apple Inc. (AAPL) - Get Apple Inc. (AAPL) Report will be the after-hours earnings report to watch as it releases its third-quarter results after the closing bell. 
  • Sony had a strong quarter while Samsung failed to meet expectations. 

Market Snapshot

The three major U.S. stock markets indices closed higher on Tuesday, July 31, helped by a recovery in tech names ahead of Apple's earnings report. 

The Dow Jones Industrial Average I:DJI  gained 0.43%, or 108 points to 25,415, while the S&P 500 undefined  rose 0.49%, or 14 points, and the Nasdaq I:IXIC  advanced 0.5%, or 38 points. 

With no new developments in United States' burgeoning trade wars with various countries, earnings season is once again the main catalyst for stock movements Thursday.

Procter & Gamble Co.  (PG) - Get Procter & Gamble Company Report , one of the world's largest consumer product makers, reported earnings of 94 cents a share, topping analyst estimates by four cents a share, but a third consecutive quarter of declining prices and margins that failed to meet expectations has the stock trading in both positive and negative territory. The stock rose 0.9%.

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Drug maker Pfizer Inc. (PFE) - Get Pfizer Inc. Report shares rose 3% following its earnings release in spite of the fact that the company lowered its 2018 revenue forecast and announced plans to increase investments in research and development through the rest of the year. 

Sony Corp.  (SNE) - Get SONY GROUP CORPORATION SPONSORED ADR Report shares rose 3% after the electronics and media company reported a second quarter that bettered its performance last year. The company reported a net profit of 226.4 billion yen ($2.04 billion) on revenue of 1.95 trillion yen ($17.55 billion) compared to a net profit of 80.9 billion yen on 1.96 trillion yen in revenue last year. The company's strong quarter was bolstered by its PlayStation video game unit, which had the highest operating profit of any of the company's business units, including smartphones and movies.

The Federal Reserve Board is holding a two-day policy meeting in Washington Tuesday and Wednesday with investors modestly reducing bets that it will be able to execute two more rate hikes between now and the end of the year, according to the CME Group's FedWatch tool.

Traders are now pricing in a 60.3% chance of a December rate increase, which would take the Fed funds rate to a range of between 2.25% and 2.5%. That's down from the 62.5% probability recorded yesterday but firmly ahead of the 47.3% chance the FedWatch tool was pricing in at the end of June.

Asian markets were mixed with the Hang Seng falling 0.52%, the Shanghai Composite rising 0.26% and the Nikkei climbing 0.04%.

European markets were also mixed, with the DAX falling 0.07%, the CAC 40 climbing 0.38% and the FTSE 100 rising 0.8% with about four hours left in trading.

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