Stocks climb on solid earnings

Dow could soon hit another big record; Tax cuts have Wall Street fired up
Posted at 11:37 AM, Jul 23, 2019
and last updated 2019-07-23 11:37:43-04

(CNN) -- The Dow and US stocks opened higher on Tuesday as global markets are in the green across the board.

The Dow kicked the day off 0.3%, or 90 points, higher, while the S&P 500 and Nasdaq Composite climbed 0.4% and 0.5%, respectively.

The positive momentum comes on the back of better-than-expected corporate earnings. The US earnings calendar is packed on Tuesday, including Coca-Cola and Lockheed Martin, which reported before the open. After the bell, earnings of Visa, Chipotle and Snap are due.

The deal between Congress and President Donald Trump to avoid a budget showdown and expand the debt ceiling is also helping sentiment. On top of that, the Fed's expected rate cut next week is also lending support to stocks.

However, stock gains might be limited ahead of Friday's second quarter US GDP report, as investors wait and see how the American economy performed last quarter.

Elsewhere, the British FTSE 100 index is up 0.9%, while the British pound is down 0.3% at $1.2435, after Boris Johnson won the Conservative leadership contest in the UK. He will replace Theresa May as Prime Minister when she steps down on Wednesday.

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