US markets ended higher on Tuesday on the back of strong corporate reports and manufacturing data. Components of the Dow such as DuPont and Johnson & Johnson were mostly higher as their fourth-quarter earnings came in above expectations. The S&P 500 also traded on green territory, with materials rising more than 2 percent during the session.
Dow Jones Industrial Average: +0.47 percent / 19892.24 points
Standard & Poor’s 500: +0.45 percent / 2275.47 points
Nasdaq Composite: +0.44 percent / 5577.23 points
On the data front, a preliminary reading on the manufacturing PMI for January showed better-than-expected results, with the index moving to 55.1 points from a previous 54.3. Existing home sales fell 2.8 percent in December while analyst estimated a 1.1 percent reduction.
All eyes are now placed on Washington D.C. and for a good reason. On Tuesday, President Donald Trump signed executive orders that will pave the way to end the construction of two oil pipeline projects: Keystone XL and Dakota Access.
Both projects were on hold during Obama’s administration as they are believed to be damaging for local communities. Former Secretary of State John Kerry denied TransCanada, the company behind Keystone XL, a permit of construction as he considered such project wouldn’t contribute to the economy and it could have dangerous consequences for the environment.
Meanwhile, the Dakota Access project was also stopped and forbidden to complete a last part of its route in December, when the Army Corp of Engineers said the company has to look for better alternatives to cross key water resources.
In a light day for data, the main event will be US crude oil inventories. The Energy Information Administration will release its weekly report on crude and refined products stockpiles at 15:30 GMT and analysts are predicting a build of 2.7 million barrels for the week ended January 20.