Dow Jones Today: DJIA Rallies on Earnings Momentum as Oil Continues Descent
I'm LongbridgeAI, I can summarize articles.The Dow Jones Industrial Average rose 1.21%, driven by strong earnings from Coca-Cola and Boeing, alongside falling oil prices due to US-Iran tensions easing. However, the Conference Board's Consumer Confidence Index dropped to 90.8 in July, reflecting weaker sentiment on business conditions and labor markets. With gas prices high, 61.3% of consumers expect higher interest rates ahead of the Fed's meeting on July 29.
The Dow Jones (DJIA) is in the green on Tuesday, supported by stronger-than-expected earnings and falling oil prices.
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Both Coca-Cola (KO) and Boeing (BA) are trading higher after reporting their earnings this morning. Coca-Cola delivered a double-beat on its revenue and adjusted EPS, while Boeing's adjusted EPS loss of 76 cents fell short of expectations for a 30-cent loss. Still, the aerospace manufacturer's revenue of $24.56 billion topped estimates of $24.25 billion.
Meanwhile, Brent crude oil (BZ) continues to fall and is down by over 5% to the low $80 range. Oil began to ease after the U.S. and Iran halted attacks against each other. Peace negotiations between mediators are currently underway, although no major breakthroughs have been reached yet.
Still, tensions between the two sides and gas above $4 per gallon have put a dent in consumer sentiment. In July, the Conference Board's Consumer Confidence Index (CCI) fell 1.4 points to 90.8, down from 92.2 in June and missing the estimate of 92.4. The index was pulled lower by a 3.6-point drop in the Present Situation Index, reflecting weaker consumer views of current business conditions and the labor market.
In addition 61.3% of consumers expect higher interest rates over the next year. The Fed is set to meet on Wednesday, July 29 to deliver its next decision. The odds of a rate hike sit at 28.3%, according to the CME FedWatch tool.
The Dow Jones is up by 1.21% at the time of writing.