Stocks opened higher on Tuesday as investors digested the news of a new trade deal with Japan and progress in talks with Europe. Investors also weighed earnings reports from Alphabet and Tesla.
In the news:
President Trump announced a trade deal with Japan late Tuesday that would reduce tariffs on the two countries to 15% from 25%. He also said Japan would invest $550 billion in the United States, including 100 Boeing (BA) jets. The news lifted shares of Japanese companies.
But the biggest gains were seen in technology stocks. Intel (INTC) and Nvidia (NVDA) rose after both reported better-than-expected earnings results. Both companies reported strong demand for their products, which helped lift the sector as a whole.
The S&P 500 index added 0.8% to notch a record high closing, while the Nasdaq gained 0.5%. Market breadth was healthy, with advancers outnumbering decliners by a 2-to-1 margin on both the NYSE and the Nasdaq. Tech, industrials and health care were the strongest sectors.
Earnings are expected to remain in focus this week. Big bank earnings are expected to set the tone for the rest of the season. Analysts haven’t raised second-quarter earnings expectations much in recent weeks, although they have lowered growth expectations for some sectors.
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