Early gains for the Dow Jones Industrial Average lost some of their thunder by Tuesday afternoon, but the index remained on track to end its four-day losing streak. Investors were encouraged by surprisingly strong earnings reports from the likes of Verizon and an uplifting factory metric.
After surging more than 335 points at one point, the Dow index trimmed those gains and was up around 100 points, or 0.3%. The S&P 500 and Nasdaq composite also added 0.3%. The same was true for the small-cap Russell 2000 index. All were off the day's highs.
S&P Global reported Tuesday that one metric for the Purchasing Managers' Index for October came in ahead of views and rose to a six-month high. The manufacturing index rose to 50.0, up from September's 49.8, and ahead of forecasts for a drop to 49.5. Other PMI metrics also beat September numbers. S&P said the growth in overall output was the strongest since July.
Meanwhile, big-cap players with robust quarterly results saw their stocks surging. General Electric and Verizon staked big claims as shares of each company were up sharply. Also making a huge jump was Spotify, while 3M, Coca-Cola and Fiserv posted healthy gains.
Volume on the Nasdaq was down while activity on the New York Stock Exchange was up compared with the same time on Monday.
Treasury yields stabilized as the 10-year edged down fractionally to 4.83%. And West Texas intermediate crude lost 2.1% to $83.71 a barrel.
Dow Jones: Key Earnings Movers
Among Dow Jones components, Verizon soared nearly 9% after it said third-quarter earnings came in at $1.22 a share, while analysts expected $1.18. The company also reported 100,000 new postpaid customers, or those who spend the most monthly. Analysts projected 63,000.
Also on the Dow, 3M jumped more than 5% after reporting earnings of $2.68 a share, beating the Wall Street view for $2.34. And Coca-Cola climbed more than 2% after reporting profits of 74 cents a share, ahead of the 69-cent forecast.
Other big earnings movers included GE, which reported third-quarter adjusted earnings of 82 cents a share, well ahead of the 56 cents expected by Wall Street. The industrial conglomerate, which is winnowing down to an aerospace pure-play entity, offered a full-year earnings outlook of $2.55 to $2.65 a share, also soundly beating estimates for $2.36. GE shares surged 6%.
Further, Spotify rocketed more than 9% after the music streamer posted a surprise profit for its third quarter. The Swedish company earned the equivalent of 36 cents a share, in stark contrast to forecasts for a 24-cent loss. Spotify stock cleared an alternate buy point at 167.74, but market risk remains elevated. Meanwhile, Fiserv jumped 4.6%.
Earnings losers included TransUnion, which plummeted more than 25% on its report and touched a six-year low. It was also the largest percentage drop ever for the credit reporting firm since it went public in 2015. TransUnion offered a fourth-quarter outlook with earnings coming in at 67 cents to 72 cents a share, down from analyst estimates of 98 cents. It also cut its full-year projection, and missed on third-quarter results by 4 cents a share.
Also in negative ground on earnings was hospital operator HCA Holdings, which plunged 4.5%. HCA's revenue was strong, but costs cut into earnings, which came up short of forecasts.
Elsewhere, some key exchange traded funds joined the party. The Nasdaq 100 tracker Invesco QQQ Trust was up 0.2%, though off session highs. And the Innovator IBD 50 ETF outperformed the market with a 1.5% jump.
Big Gainers Outside The Dow Jones
Companies that posted big gains in heavy volume included Medpace, which catapulted more than 17% on earnings. Volume rocketed more than 454% in afternoon action as the provider of drug development services beat estimates, raised its outlook and said new business awards were up 30%, well ahead of views. Medpace moved back above both its 21-day and 50-day moving averages.
MicroStrategy soared more than 11% on a gain of more than 400% in volume. The data analytics company is now extended from both its 21-day and 50-day lines.
IBD 50 stock Miniso Group moved into a buy zone after a 10% jump. The China-based retailer bounced off its 50-day line Tuesday. But keep in mind that the market is in a correction.
Another IBD 50 stock climbing off the 50-day was Kinsale Capital, which added 3% in recent action. Kinsale also was trying to make a move off its 21-day line after four straight down sessions.
Tesla Wrestles 200-Day Line
The market's momentum also helped electric-vehicle behemoth Tesla creep back above its 200-day moving average early in the session. But its gains were pared to 2.6% and TSLA stock stood right at the line Tuesday afternoon.
On Monday, Tesla disclosed it received multiple subpoenas from the Department of Justice seeking information about the range of the company's vehicles as well as executive benefits and personnel decisions, according to CNBC.
Another Dow Jones component, Microsoft, is due to report earnings after the close. The software titan was down fractionally in recent action and continues to work on a cup base.
Also on the earnings roster for Tuesday afternoon is Google parent Alphabet. The search giant climbed 1.1% in afternoon trades.
