After a strong performance on Monday, the Dow gained an additional 200 points on Tuesday as corporate earnings were underway. General Motors shares are jumping after releasing its better-than-expected quarterly report, while Tesla is crossing its fingers as it will release its report after the closing bell.
In the mid-morning, the Dow Jones Industrial Average jumped 206 points, up 0.5% to 38,446. The S&P 500 gained 0.9%, while the Nasdaq Composite went up 1.26%.
The yield on the 10-year note was at 4.596%. Iran-Israel tensions seem to have eased, driving oil prices lower. West Texas Intermediate is now trading at $82.223 a barrel.
GM rallies 5% after strong earnings report
Shares of General Motors increased by nearly 5% Tuesday morning following the announcement of better-than-expected first-quarter earnings. The automotive company also raised its full-year predictions and reported a reduction in the cost of batteries for its electric vehicles.
The company announced that its earnings per share for the first quarter increased by 18.5% to $2.62, while its revenue grew nearly 8% to $43.01 billion. Analysts had predicted earnings of $2.13 per share, with sales totaling $41.09 billion.
Spotify stock surges over 15%
Spotify’s shares rose by over 15% after the company beat first-quarter estimates and provided strong guidance for the next quarter. Trading around $315 in mid-morning, the stock reached its new 52-week high today.
Wall Street had been expecting $3.87 billion in revenue from the company, but it posted $3.95 billion. The audio giant has undergone several rounds of layoffs and price increases in the past year to boost revenue and improve margins.
Super Micro Computer is back
After seeing days of downtrend, AI hardware maker Super Micro Computer bounced back Tuesday morning. The stock was one of the the best-performing of the day so far on the S&P 500, with over a 9% jump.
This follows news of Chinese universities acquiring Nvidia AI chips built-in Super Micro Computer, Dell, and Gigabyte Technology servers.
PepsiCo dips after weaker demand in the home market
Shares of beverage and food company PepsiCo dipped 2.4% despite reporting better-than-expected earnings and revenue estimates. That’s because international markets reported better volume and sales growth than North America, while product recalls and weaker demand from lower-income consumers hurt sales in its home market.
The company reported earnings of $1.61 per share, adjusted, exceeding the expected $1.52, while revenue totaled $18.25 billion, beating the projected $18.07 billion.