Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally.
Market Snapshot
The Dow Jones Industrial Average rose 204.97 points, or 0.62%, to 33,141.38, the S&P 500 gained 30.64 points, or 0.73%, to 4,247.68 and the Nasdaq Composite added 121.55 points, or 0.93%, to 13,139.88.
Market Movers
General Electric (GE) reported third-quarter earnings of 82 cents a share, beating Wall Street estimates of 56 cents. The company also raised full-year guidance and the stock was up 6.5%.
General Motors (GM) posted third-quarter earnings of $2.28 a share on sales of $44.1 billion, topping analysts’ expectations. The auto maker withdrew its guidance for the year because of the United Auto Workers strike, which was expanded Tuesday to the company’s full-size SUV plant in Arlington, Texas. Shares declined 2.3%.
3M (MMM) was up 5.3% after the company posted its second consecutive big earnings beat.
RTX (RTX) jumped 7.2% after the aerospace and defense contractor reported third-quarter adjusted profit that beat analysts’ estimates. RTX also said its board approved a $10 billion accelerated share repurchase program.
Spotify Technology ‘s (SPOT) third-quarter subscribers numbers beat expectations and the stock was up 10.4%.
Verizon Communications (VZ) reported better-than-expected third-quarter adjusted earnings and the telecommunications company raised its free cash flow expectations for the year. Shares jumped 9.3%.
Coca-Cola (KO) easily topped third-quarter earnings estimates and boosted guidance. The stock was up 2.9%.
HCA Healthcare (HCA) tumbled 4.5% after the hospital operator reported third-quarter earnings below analysts’ expectations.
Coinbase Global (COIN) rose 6.3% as Bitcoin prices have surged 9% over the past 24 hours to above $34,000.
DraftKings (DKNG) rose 3.7% after shares of the sports-betting company were upgraded to Buy from Neutral at MoffettNathanson.
Redfin (RDFN) rose 5% after the real estate brokerage said Apollo Capital Management, the private-equity giant, agreed to commit up to $250 million in financing.
Logitech ‘s (LOGI) second-quarter earnings beat Wall Street estimates and the computer, gaming, and videoconferencing peripherals company raised its forecast for fiscal 2024 revenue to $4 billion to $4.15 billion from its prior outlook of $3.8 billion to $4 billion. Shares rose 12.9%.
Market News
Microsoft Sales Beat Estimates As Customers Prepare for AI Rollout
Microsoft on Tuesday beat Wall Street estimates for fiscal first-quarter results in all segments, with its cloud computing and PC businesses growing as customers anticipate using its artificial-intelligence offerings.
Its forecast also was mostly ahead of analyst targets. Microsoft shares were up 3% in after-hours trading.
Google-Parent Alphabet's Cloud Division Misses Revenue Estimates, As Microsoft's Cloud Booms
Google-parent Alphabet's cloud business crawled to its slowest in at least 11 quarters, sending the company's stock down more than 6% after hours, even as sales at rival Microsoft's cloud unit boomed.
The drop in Google’s share price despite beating Wall Street estimates for profit and sales, shows how much investors want the company to deliver gains in artificial intelligence, and show the cloud business remains competitive against a more powerful Azure from Microsoft and Amazon.com’s AWS.
Qualcomm Unveils New PC Chip in Challenge to Apple, Intel
Qualcomm Inc., stepping up its long-running effort to break into the personal computer market, unveiled a new laptop processor designed to outperform rival products from Intel Corp. and Apple Inc.
The new Snapdragon X features 12 high-performance cores capable of crunching data at 3.8 megahertz, Qualcomm said at a company event Tuesday in Hawaii. The chip is as much as twice as fast as a similar 12-core processor from Intel, while using 68% less power, Qualcomm claims.
