August 24, 2019

Global Stocks Rise as US Averts Government Shutdown

Global Stocks Rise as US Averts Government Shutdown

NEW YORK — U.S. stocks on Tuesday headed for their sharpest gains this month as lawmakers avoided another partial government shutdown and with U.S.-China trade talks back on.

The agreement on border security involves far less money for a wall than the White House wanted, and it’s not clear whether President Donald Trump will support the deal. Still, the move alleviates some uncertainty for the market ahead of talks that businesses hope will end a damaging trade war between the world’s biggest economies.

Both nations are trying to reach a deal before March 1. That’s when additional tariffs will kick in, escalating the conflict and further hurting companies and consumers with higher prices on materials and products.

Elsewhere, companies are wrapping up an earnings season that’s featured solid profit growth for the final three months of 2018, but caution about conditions going forward. Analysts predict profits will fall in the current quarter, according to FactSet.

Brewer Molson Coors fell as lower volume reduced revenue and profit. Under Armour rose after stronger sales helped it beat forecasts.

KEEPING SCORE: The Dow Jones Industrial Average rose 315.9 points, or 1.3 percent, to 25,371 as of 11:40 a.m. The S&P 500 index rose 1.2 percent and the Nasdaq composite rose 1.4 percent.

FAULTY TAP: Molson Coors plunged as lower sales volume sunk revenue and profit during the fourth quarter. The brewer will also restate some past results. The maker of Molson and Coors beer said tax accounting errors in 2016 and 2017 prompted the restatements.

The stock fell 7.2 percent.

MORE FOUNDATION: German conglomerate JAB Holdings hopes to take a majority stake in Coty Inc., the maker of CoverGirl, Max Factor and Hugo boss cosmetics.

JAB is offering to buy up existing stock from shareholders at $11.65 per share, a 20 percent premium from its closing price on Monday. The goal is to eventually own 60 percent of the company’s stock. Coty’s CEO, Camillo Pane, recently resigned from the company, which faces supply chain and revenue difficulties.

The stock rose 14.6 percent.

ACTIVE WEAR: Under Armour rose 6.5 percent after the maker of sportswear beat Wall Street forecasts. A surge in international sales offset a downturn in Under Armour’s U.S. sales.

OVERSEAS: Markets in Europe and Asia are also broadly higher. Fears of a global slowdown still linger as the US and China head into trade talks. Britain, Europe broadly and China have all reported slower economic growth.

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