Stock markets in the Unites Stated ended the trading session higher as lawmakers in the Congress are showing signs that they could reach an agreement to raise the debt ceiling before the deadline on October 17.
In a telephone interview with Bloomberg, Alan Gayle, senior strategist at Ridge Worth Capital Management said, “Investors are encouraged that the political posturing appears to be dying down and that real negotiations are under way. The expectation is that as long as there are genuine negotiations, that there will be a reasonable solution that will avoid a default and secondly will get the government up and running again.”
Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell were both optimistic that Congress will reach a budget deal. The United States government has been partially shut down since October 1.
Christine Lagarde, managing director of International Monetary Fund (IMF) warned that failure to raise the U.S. government debt ceiling will be harmful to the country’s economy and world economies. In an interview with NBC, Lagarde said, “If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over. And we would be at risk of tipping, yet again, into recession.”
- Dow Jones Industrial Average (DJIA)- 15, 301.26 (+0.62%)
- S&P 500- 1,710.14 (+0.42%)
- NASDAQ- 3,815.27 (+0.62%)
- Russell 2000- 1,090.30 (+0.55%)
- EURO STOXX 50 Price EUR- 2, 977.69 (+0.11%)
- FTSE 100 Index- 6,507.65 (+0.32%)
- Deutsche Borse AG German Stock Index DAX- 8,723.81 (-0.01%)
Asia Pacific Markets
- Nikkei 225- 14,404.74 (+1.48%)
- Hong Kong Hang Seng Index- 23,218.32 (+1.16%)
- Shanghai Shenzhen CSI 300 Index- 2, 472.54 (+0.16%)
Stocks in Focus
Shares of The Coca-Cola Company (NYSE:KO) gained by 0.37% to $37.91 per share today. The beverage giant is set to report its third quarter earnings results before the market opens tomorrow. Analysts expect the company to report $0.53 earnings per share on $12.05 billion revenue.
Johnson & Johnson (NYSE:JNJ) is also expected to report its financial results tomorrow. The stock price of the company is slightly higher today. Analysts projected that the company will report a 6% increase in earnings per share to $1.32 on $17.4 billion revenue.
Meanwhile, Intel Corporation (NASDAQ:INTC) also climbed by nearly 1% to $23.45 per share. The company will also report its third quarter earnings results tomorrow. During the previous quarter, Intel posted a negative surprise of 3%. Analysts expected that Intel will be able to generate an average earnings per share of $0.53 on $13.47 billion revenue.