Many companies reported positive earnings Tuesday, helping the Dow Jones Industrial Average rise more than 260 points by the end of the day. 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. Tesla stock closed up almost 2%.
Facebook parent Meta is scheduled to release its quarterly reports Wednesday.
The Dow closed up 260 points, or about 0.7%, to 38,503. The S&P 500 rose 1.2% and the Nasdaq ended 1.6% higher.
IBM may acquire HashiCorp
Shares of cloud software company HashiCorp surged nearly 20% by closing time following a report that multinational technology company IBM was in talks to acquire the company.Â
After being founded in 2012, HashiCorp went public in 2021. It assists companies with setting up cloud infrastructure.
According to the Wall Street Journal, HashiCorp had a market cap of $4.9 billion, making the deal relatively small for IBM and its $170 billion market cap. This news comes a day after Salesforce announced that it was no longer interested in buying Informatica.
GM rallies over 4% after strong earnings report
Shares of General Motors increased by over 4% by the end of the day 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 11%
By closing time, Spotify stock soared more than 11% 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 several consecutive days of losses, AI hardware maker Super Micro Computer bounced back Tuesday. The stock was one of the best-performing of the day so far on the S&P 500, up about 6.25% by closing time.
The gain followed news of Chinese universities acquiring Nvidia AI chips built into Super Micro Computer, Dell, and Gigabyte Technology servers despite a U.S. ban.
PepsiCo dips after weaker demand in the home market
Shares of beverage and food company PepsiCo shed 2.9% by closing time despite reporting better-than-expected earnings and revenue estimates. While international markets reported better volume and sales growth than North America, 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.