Dow Gains for First Time in 5 Sessions as Government Shutdown Seems Unlikely
Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average traded sharply higher Tuesday after U.S. lawmakers reached a tentative deal that would avoid another government shutdown, and there were signs of progress on a U.S. trade deal with China.
- Under Armour Inc. (UAA) earned 9 cents a share in the fourth quarter on an adjusted basis on revenue of $1.39 billion, beating analysts’ estimates on both the bottom and top lines. The stock rose 4.5%.
- Molson Coors Brewing Co. (TAP) posted stronger-than-expected fourth-quarter profit but said its financial statements for 2016 and 2017 would have to be restated because of accounting errors related to income taxes. Shares fell 9.44%.
Wall Street Overview
Stocks rose sharply Tuesday, Feb. 12, after lawmakers in Washington reached a tentative deal that would avoid another government shutdown later this week.
Republican Sen. Richard Shelby of Alabama said a tentative deal had been reached with Democratic lawmakers to fund the U.S. government through the current financial year, which ends in September. He noted, however, that the deal didn’t include the $5.7 billion for border wall funding demanded by Donald Trump. The legislation still has to be written, however, passed by both the House and the Senate, and signed by Trump, by midnight Friday, for a second shutdown this year to be avoided.
Investors also cheered positive signals from trade talks between Washington and Beijing. Trump said Tuesday he would consider postponing the March 1 deadline for raising China tariffs if the U.S. and China can reach a trade deal soon, CNBC reported.
Trump said he was open to letting the deadline slide, but “would prefer not to,” CNBC reported. He also said Beijing “very much wants to make a deal,” and he has “a big team” in China trying to reach a resolution.
Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are expected to arrive in Beijing Thursday for higher-level discussions as negotiators race to meet the deadline when tariffs on $200 billion worth of China-made goods could increase to 25% from 10%.
The Dow Jones Industrial Average jumped 372 points, or 1.5%, to 25,426, the S&P 500 rose 1.3%, and the Nasdaq was up 1.46%. The Dow closed lower Monday for a fourth consecutive session.
Under Armour Inc. (UAA) earned an adjusted 9 cents a share in the fourth quarter on revenue of $1.39 billion. Analysts were expecting earnings of 4 cents a share on revenue of $1.38 billion.
The company also reaffirmed that it expects earnings next fiscal year of 31 cents to 33 cents a share on revenue growth of 3% to 4%.
The stock rose 4.5%.
Molson Coors Brewing Co. (TAP) posted stronger-than-expected fourth-quarter profit but noted that “material weakness” in the way it accounted for deferred tax liabilities in statements from 2016 and 2017 will mean a collective $247.7 million hit to retained earnings for full-year 2017.
The stock fell declined 9.44%.
Electronic Arts Inc. (EA) rose 5.2% Tuesday, after closing at the highest level in nearly four months on Monday, as analysts continued to cite the surprising success of its ‘Apex Legends” multi-player combat game.
Earnings reports are expected after Tuesday’s closing bell from EA competitor Activision Blizzard Inc. (ATVI) and Twilio Inc. (TWLO) .
Shares of Coty Inc. (COTY) surged 12.5% to $10.87 on Tuesday after premium consumer-brand investor JAB Holding Co. said it plans to boost its stake in the company by acquiring an additional 150 million Coty shares.
Aurora Cannabis Inc. (ACB) , the Canadian cannabis producer, posted a fiscal second-quarter loss of C$237.8 million on revenue of C$54.2 million, compared with year-earlier profit of C$7.7 million on revenue of C$11.7 million.
The company attributed the revenue surge to its launch in the Canadian consumer market, where it reported sales of C$21.6 million, and international medical markets.
Shares of Aurora Cannabis were flat on Tuesday.
Aurora is one of three Canadian Cannabis companies reporting earnings this week. Tilray Inc. (TLRY) is scheduled to report fourth-quarter results on Tuesday, while Canopy Growth Corp. (CGC) will issue third-quarter results on Thursday.