Major indexes closed in the green on Tuesday after China’s central bank stepped in to contain the fall in the Chinese currency. On Monday, stocks had taken a sharp drop after China let its currency fall to its lowest level in a decade. The move came as a precautionary measure after President Trump, on Aug 1, threatened to impose 10% tariffs from Sept 1 against an additional $300 billion of Chinese imports.
The Dow Jones Industrial Average climbed 1.2% to close at 26,029.52 on Aug 6. The broader S&P 500 and tech-laden Nasdaq Composite followed suit, rising 1.3% and 1.4% respectively. The former closed at 2,881.77 while the latter ended the day at 7,833.27. The fear-gauge CBOE Volatility Index (VIX) slumped 18% to close at 20.17. Lastly, advancers outnumbered decliners on the NYSE by a 1.20-to-1 ratio.
China’s Central Bank Sets Yuan’s Official Reference Point
Wall Street gained on Aug 6 after the People’s Bank of China stepped in to set the yuan’s official reference point at a level of 6.9683. The Asian country’s central bank did so to stop the Chinese currency from falling below its 7-to-1 ratio with the greenback.
China allowed yuan’s devaluation in a bid to cushion its domestic economy from losses suffered from the trade war. In particular, this move came after Trump said he would impose 10% tariffs on the rest of China’s imports to U.S., to be applicable from Sept 1.
Q2 Earnings Picture
In the corporate sector, The Walt Disney Company (DIS - Free Report) reported quarterly earnings of $1.35 per share, missing the Zacks Consensus Estimate of $1.76. Increased programming costs at ESPN and heavy investments in ESPN+ and upcoming streaming service Disney+ hurt the company’s profitability in its fiscal third-quarter. The media giant’s quarterly revenues of $20.25 billion also missed the Zacks Consensus Estimate by 6.61%. Disney carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Second-quarter earnings continue to come through and the overall picture looks good enough. To be specific, Finance and Consumer Staples sectors have yielded better-than-expected quarterly results. (Read more)
Stocks That Made Headlines
Hertz Global Shares Up on Q2 Earnings & Revenues Beat
Hertz Global Holdings, Inc’s (HTZ - Free Report) second-quarter 2019 adjusted earnings (excluding 34 cents from non-recurring items) of 74 cents handsomely surpassed the Zacks Consensus Estimate of 22 cents. (Read more)
Diamondback's Q2 Earnings Miss on Weak Gas Prices
Yesterday, Diamondback Energy, Inc. (FANG - Free Report) reported second-quarter results, delivering a comprehensive miss. (Read more)
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>