Blue chip stocks bounced back Tuesday from the recent wave of selling. Emerging markets, which had been pummeled in recent sessions, also stabilized — and that allowed U.S. investors to focus on some upbeat earnings reports at home.
The Dow Jones industrial average (^DJI) gained 90 points, snapping a five day losing streak. The Standard Poor’s 500 index (^GPSC) rose 11, and the Nasdaq composite (^IXIC) added 14 points, despite a big drop by Apple (AAPL), which tumbled more than 8 percent when iPhone sales failed to live up to expectations. There’s concern the company is no longer on the leading edge of consumer must-have products.
This is the busiest week of the earnings season, and there were some upside surprises too. Pfizer (PFE) rose 2.5 percent. American Airlines (AAL) jumped 5.5 percent. And Comcast (CMCSA) gained 1.5 percent. Its net was actually below forecasts, but the company raised its dividend and said it may expand overseas.
Ford (F) shares were little changed despite good quarterly numbers. DuPont (DD) fell 1 percent even though earnings topped expectations. U.S. Steel (X) also fell 1 percent as its loss widened. And Seagate Technologies (STX), which makes computer storage equipment, fell 11 percent.
Elsewhere, Netflix (NFLX) rose more than 6 percent on a Wall Street Journal report that it’s looking to expand to Europe. Its stock is now up 148 percent from a year ago.
The trucking company YRC Worldwide (YRCW) rallied 13 percent after resolving a contract dispute with the Teamsters union.
Facebook (FB) rose 3 percent on a Cowen upgrade ahead of its earnings report on Thursday.
And Abercrombie Fitch (ANF) rose 5 percent. It stripped its CEO of the chairman’s job, and dropped a poison-pill provision that had been in place to make a buyout more difficult.
What to Watch Wednesday:
- Federal Reserve policymakers meet to set interest rates.
These major companies are due to report quarterly financial results:
- Boeing (BA)
- Deutsche Bank (DB)
- Dow Chemical (DOW)
- Facebook (FB)
- Las Vegas Sands (LVS)
- Novartis (NVS)
- Qualcomm (QCOM)
- WellPoint (WLP)
–Produced by Drew Trachtenberg.