U.S. stocks were sharply higher through early afternoon trading Tuesday as investors looked for an entry point following the extension of last week’s losses yesterday. The catalyst for today’s buying appears to be a handful of impressive pre-market earnings reports, as well as anticipation for marquee tech reports coming after the bell.
Major indexes were down on Monday as Wall Street rejected an attempted rebound from the worst stretch of trading it had seen in months last week. Through 2:00 p.m. Tuesday, the Dow was up more than 450 points, or roughly 1.8% above its Monday close. The tech-heavy Nasdaq added about 2.5% in that time, while the S&P 500 was closing in on 1.9% gains.
Much of Tuesday’s optimism was inspired by positive pre-market earnings reports. Here’s a closer look at a few noteworthy stocks moving after reporting this morning.
The Progressive Corporation (PGR - Free Report)
Insurance giant Progressive was third-quarter earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.14 and improving 178% year over year. Operating revenue was up nearly 22% in the quarter, lifted by solid growth in investment income, premiums earned, higher fees, and services revenue.
Shares of Progressive rose 6% to touch an intraday high of $70.18 early Tuesday morning. The stock had reached a 52-week high of $72.02 prior to last week’s selloff.
Morgan Stanley (MS - Free Report)
Morgan Stanley, a major investment banking firm, saw Q3 earnings of $1.17 per share, topping our Zacks Consensus Estimate by 17 cents. The figure marked year-over-year growth of 26%. Morgan Stanley’s results were buoyed by higher trading income and underwriting revenue. Shares were on pace to close more than 5.3% higher today.
UnitedHealthcare (UNH - Free Report)
UnitedHealthcare today reported earnings of $3.41 per share. This topped the Zacks Consensus Estimate of $3.30. UNH also raised its profit guidance for 2018 and affirmed its early outlook for next year. Shares of the healthcare major were up about 4.1% in afternoon trading, adding to the stock’s 18% year-to-date gains.
Domino’s Pizza (DPZ - Free Report)
Shares of Domino’s fell as much as 5.1% after the pizza chain reported mixed earnings before the bell. Adjusted earnings of $1.95 per share beat the consensus estimate of $1.73 and improved 53.5% from the prior year. However, revenue of $786 million missed the consensus mark of $790 million. Comps at domestic stores were up 6.3%, while comps at international stores gained 3.3%, excluding currency translation.
W.W. Grainger (GWW - Free Report)
Industrial supply company W.W. Grainger (GWW - Free Report) posted adjusted per share earnings of $4.19, beating the Zacks Consensus Estimate of $3.96 and growing about 6% year over year. However, including on-time costs, earnings were down 35% to $1.82 per share. Revenue of $2.83 billion also missed the consensus mark of $2.85 billion.
Notable after-the-bell reports include Netflix (NFLX) and IBM (IBM). As earnings season heats up, readers can use the Zacks Earnings Calendar to plan their schedules. This handy tool is your perfect one-stop-shop to properly prepare for earnings, dividend announcements, and other important financial releases.
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