May 28, 2024

After a strong performance Monday, the Dow Jones Industrial Average and other major U.S. stock indexes continued to gain Tuesday on encouraging corporate earnings reports.

General Motors stock jumped after the company released its better-than-expected quarterly report, while Tesla stock also rose ahead of closely watched earnings due to be released after the bell.

The dow was up 229 points, or about 0.6%, to 38,469 in mid-afternoon trading. The S&P 500 gained about 1.1% while the Nasdaq rose 1.4%.

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 stock rallies 5% after strong earnings report

General Motors stock spiked more than 5%, making it one of the day’s top S&P 500 performers in the afternoon. It followed GM’s 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 17%

Spotify stock soared more than 17% after the company beat first-quarter estimates and provided strong guidance for the next quarter. The stock briefly hit a 52-week high.

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 days of losses, AI hardware maker Super Micro Computer bounced back Tuesday. The stock was one of the the best-performing of the day so far on the S&P 500, up about 5.1% in the afternoon.

The gain followed 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.

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