US Market gains on blockbuster earnings

The US stock market finished higher on Tuesday, 15 October 2019, as risk sentiments boosted up by raft of better than expected corporate earnings reports and optimism over the possibility of a breakthrough in Brexit negotiations. Market gains were, however, limited after fresh International Monetary Fund report that lowered the 2019 and 2020 growth forecasts and warned of a "precarious" outlook if trade conflicts continue to fester. At closing bell, the Dow Jones Industrial Average rose 237.44 points, or 0.9%, to end at 27,024.80, while the S&P 500 index gained 29.53 points, or 1%, to finish at 2,995.68. The Nasdaq Composite Index advanced 100.06 points, or 1.2%, to close at 8,148.71.

Expectations have been tepid for the third-quarter earnings season, which began in earnest on Tuesday, because of slowing economic growth. However, the big banks on the front lines of America's economy reported mostly upbeat results on Tuesday. JPMorgan raked in record revenue and its profit crushed expectations, despite the challenging interest rate environment. Citigroup's results also topped market expectations.

 

The U.K. and the European Union moved close to agreeing upon a draft plan for Britain to leave the bloc, with a preliminary Brexit deal possible by Wednesday. EU chief negotiator Michel Barnier told a meeting of government ministers earlier in Luxembourg that a deal on a draft Brexit text was needed overnight if he was to recommend on Wednesday that EU leaders sign off on an agreement when they meet later this week.

The IMF on Tuesday cut its 2019 global growth forecast, calling for the weakest pace since the financial crisis. In its World Economic Outlook, published Tuesday, the IMF sees global economic growth falling to 3% this year, the slowest pace since the 2008 financial crisis.

In commodities markets, West Texas Intermediate crude fell 78 cents, or 1.5%, to $52.81 on the New York Mercantile Exchange as slowing global economic growth contributed to worries about oil demand.

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