Markets continue to rally

U.S. stock-market indexes closed higher Tuesday, but off their session highs, following news that the Trump administration made little progress in resolving its trade dispute with China. The S&P 500 added 13.69 points to 2,816.29, a gain of 0.5% which snapped a 3-day losing streak. The Dow Jones Industrial Average rose 107.95 points, or 0.4%, to 25,414.78 and ended the month with a 4.7% gain, its largest monthly gain since January. The Nasdaq Composite Index advanced 41.78 points, or 0.6%, to 7,671.79 and rose 2.2% over July.

European stocks also closed higher, with investors absorbing a new round of corporate earnings reports, including well-received results from Swiss banking heavyweight Credit Suisse. The Stoxx Europe 600 index closed up 0.2% at 391.61, overcoming volatility during the session. The U.K.’s FTSE 100 index advanced 0.6% to end at 7,748.76 and Germany’s DAX 30 index closed the session up by just 0.1% at 12,805.50, held back in part by a slump in shares of Fresenius SE & Co. KGaA.

Apple jumps on sales growth

Apple Inc. shares jumped 4 percent in extended trading after the company projected sales suggesting consumers are continuing to snap up the company’s high-end iPhones even as updated models are on the horizon. The stock gained 12 percent this year though Tuesday’s close — before the results were announced — putting the iPhone maker on a path to become the first U.S.-based company with a market value of $1 trillion.

The Cupertino, California-based technology giant expects fiscal fourth-quarter revenue between $60 billion and $62 billion. Analysts were looking for $59.4 billion, according to data compiled by Bloomberg. Fiscal third-quarter results also beat Wall Street expectations, sending the shares climbing to $198 in extended trading, a record price if the increase holds through Wednesday.

Trump proposes increased tariffs

The Trump administration plans to propose slapping a 25-percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions, a source familiar with the plan said on Tuesday. They include food products, chemicals, steel and aluminum and consumer goods ranging from dog food, furniture and carpets to car tires, bicycles, baseball gloves and beauty products.

President Donald Trump’s administration said on July 10 it would seek to impose the 10-percent tariffs on thousands of Chinese imports. Investors fear an escalating trade war between Washington and Beijing could hit global growth, and prominent U.S. business groups have condemned Trump’s aggressive tariffs. The $200 billion list of goods targeted for tariffs — which also include Chinese tilapia fish, printed circuit boards and lighting products — would have a bigger impact on consumers than previous rounds of tariffs.