Tuesday morning started strong on Wall Street, with investors reacting positively to the possibility that a long meeting between the leaders of the U.S. and China could result in a thawing of trade relations between the two nations. Market participants also hope for help from the Federal Reserve, as it began its two-day meeting today. As of 11:10 a.m. EDT, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 401 points to 26,514. The S&P 500 (SNPINDEX:^GSPC) jumped 40 points to 2,930, and the Nasdaq Composite (NASDAQINDEX:^IXIC) picked up 159 points to 8,004.
Boeing (NYSE:BA) has been at the center of the trade issue, as its aircraft are a key U.S. export, and the aerospace giant got some good news today after having suffered through most of 2019. Meanwhile, Pinterest (NYSE:PINS) received positive comments about its business, prompting some investors to look more favorably upon the social media stock.
Boeing flies higher
Shares of Boeing climbed more than 2% after the aircraft manufacturer announced that it had received new orders for its planes at the Paris Air Show in France. The news was welcome after the U.S. manufacturer got shut out on the first day of the show.
Among the deals that Boeing revealed, the largest was a 200-aircraft order from International Airlines Group. It's also arguably the most important for Boeing's future, as IAG's order was for 737 MAX aircraft, which have been grounded for months following two fatal accidents involving the model.
Some other orders also gave Boeing a boost of confidence. Korean Air committed to purchase 20 of Boeing's 787 Dreamliner aircraft at a list price of roughly $6.3 billion, while Air Lease added a five-plane Dreamliner deal for another $1.5 billion.
For Boeing to mount a full comeback, it'll have to address its 737 MAX issues promptly and get regulatory clearance as soon as it can. Even then, the aerospace giant is likely to see challenges in restoring its reputation, and the competitive advantage that rival Airbus has seen in Paris could well continue for some time even if Boeing gets itself back in the air.
Pinterest gets liked
Pinterest also saw its stock rise 2% following favorable comments from a well-known stock analysis provider. Analysts at Wedbush started their coverage of the social media company with a rating of outperform, setting a price target of $33 per share.
Pinterest has a lot going for it in Wedbush's view, distinguishing itself from most other social media platforms in the extent to which it relies on images to drive traffic. More importantly from a financial perspective, Pinterest is also positioned more effectively to use its natural environment to promote goods and services, and that should help it offer a better advertising experience to clients than rival social media networks can.
Wedbush does admit that it's still early in the game for Pinterest. The social shopping company is only starting to figure out how best to monetize its user base, and it also has plenty of room to expand internationally to broaden its scope and make itself more attractive to would-be advertisers. However, the analysts see a long runway toward improving numbers in those areas.
Pinterest has already won a key victory, as its dominance recently prompted Amazon.com not to pursue its Spark social shopping app any further. If Pinterest can keep gaining viewers from those searching for products, then it could lead to accelerating gains in user counts that could propel the stock for the immediate future.