U.S. stocks traded higher toward the end of trading on Tuesday, with the S&P 500 gaining more than 1%, the Dow rising 0.68% to 38,499.41, and the NASDAQ climbing 1.69% to 15,711.94. Communication services shares led the gains, rising by 2%, while materials shares fell by 0.5%.
General Motors Company (GM) reported better-than-expected earnings for its fiscal first quarter, with quarterly sales growth of 7.6% year-on-year to $43.01 billion, beating analyst consensus estimates. Adjusted EPS of $2.62 also surpassed expectations of $2.14. GM raised its adjusted EPS guidance to $9.00 – $10.00 from $8.50 – $9.50, while consensus stands at $9.08.
Several companies saw significant gains in their stock prices. Hibbett, Inc. (HIBB) shares surged 19% to $86.26 after agreeing to be acquired by JD Sports Fashion for $87.50 per share in cash, a transaction valued at $1.1 billion. Oportun Financial Corporation (OPRT) stock jumped 36% to $3.0710 following the announcement of preliminary first-quarter total revenue exceeding estimates. Palisade Bio, Inc. (PALI) shares also rose 31% to $6.48 after the company entered into a collaboration with Strand Life Sciences.
However, some companies experienced declines in their stock prices. JetBlue Airways Corporation (JBLU) shares dropped 17% to $6.24 after reporting weak first-quarter financial results and issuing a disappointing FY24 revenue outlook. Abeona Therapeutics Inc. (ABEO) stock plunged 54% to $3.3950 after the FDA issued a Complete Response Letter in response to the company’s Biologics License Application for pz-cel, a treatment for recessive dystrophic epidermolysis bullosa. LKQ Corporation (LKQ) shares fell 13% to $42.67 after the company reported a first-quarter earnings miss and cut its FY24 outlook.
In commodity markets, oil traded up 1.8% to $83.36, while gold traded down 0.2% at $2,342.00. Silver traded up 0.5% to $27.38, while copper fell 0.9% to $4.4350.
European shares ended higher, with the eurozone’s STOXX 600 rising 1.09%, London’s FTSE 100 gaining 0.26%, and Spain’s IBEX 35 Index climbing 1.70%. The German DAX rose 1.55%, the French CAC 40 gained 0.81%, and Italy’s FTSE MIB Index jumped 1.89%.
In Asia, markets closed mostly higher. Japan’s Nikkei 225 gained 0.30%, Hong Kong’s Hang Seng Index rose 1.92%, China’s Shanghai Composite fell 0.74%, and India’s S&P BSE Sensex gained 0.12%.
In economic news, sales of new single-family houses soared 8.8% in March to an annualized rate of 693,000, compared to a revised 5.1% decline in February. However, the S&P Global services PMI and composite PMI both fell to 50.9 in April, indicating a slowdown in the services sector.
