The Dow Jones Industrial Average climbed over 100 points on Thursday morning, effectively pushing trade concerns to the side after closing Wednesday’s session 200 points in the red.
The S&P 500 and the NASDAQ were both up–13 points and 70 points, respectively. Leading the way for the Dow was Intel, which gained 2.3% while both the S&P 500 and NASDAQ were lead by CA Inc, which was just purchased for $18.9 billion by Broadcom.
The markets re-shifted its focus back on fundamentals after U.S. President Trump’s administration imposed a 10 percent tariff on $200 billion worth of Chinese goods. The announcement came late Tuesday and carried over to Wednesday morning’s trading session, snapping the Dow’s four-day winning streak.
The trade disputes couldn’t muffle earnings reports from companies like Delta Air Lines, which posted a strong second quarter. Delta Air Lines reported an earnings per share of $1.77, beating estimates from Zacks Consensus Estimate of $1.72–an increase on a year-over-year basis.
Other companies are expected to announce their earnings, particularly within the financial sector–JPMorgan Chase & Co, Wells Fargo and Citigroup are estimating a strong second quarter when they publish results on Friday. Bank of America, Goldman Sachs Group and Morgan Stanley will report their second quarter earnings next week.
Related: Is Trade War the “New Normal”?
Analysts cite the growth of loan portfolios and capital return for better-than-expected earnings estimates.
“Incremental loan growth and capital return are the biggest remaining upside deltas to our estimates from here, but each would be smaller add-ons relative to past benefits from higher rates and lower taxes,” said Jefferies’ analyst Ken Usdin.
For more market news, visit ETFTrends.com.