Economy, Business And Finance

Stocks climb on solid earnings

Better-than-expected corporate earnings reported

(CNN) - The Dow and US stocks are trading higher on Tuesday as global markets are in the green across the board.

The Dow is up 0.3%, or 67 points, in the second half of the trading day, while the S&P 500 and Nasdaq Composite are up 0.3% and 0.1%, respectively.

The positive momentum comes on the back of better-than-expected corporate earnings. The US earnings calendar is packed on Tuesday, including Coca-Cola and Lockheed Martin, which reported before the open. After the bell, earnings of Visa, Chipotle and Snap are due.

The deal between Congress and President Donald Trump to avoid a budget showdown and expand the debt ceiling is also helping sentiment. On top of that, the Fed's expected rate cut next week is also lending support to stocks.

However, stock gains might be limited ahead of Friday's second quarter US GDP report, as investors wait and see how the American economy performed last quarter.

Elsewhere, the British FTSE 100 closed 0.6% higher, while the British pound is down 0.3% at $1.2442 after Boris Johnson won the Conservative leadership contest in the UK. He will replace Theresa May as Prime Minister when she steps down on Wednesday.

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