Investors had varying reactions to earnings reports from Jabil
and Red Hat
after the close on Tuesday.
Red Hat shares fell 8% after warning that November quarter sales will come in lower than expected. August quarter sales rose 52% to $99.7 million, better than $97.1 million forecasts, while earnings after option and M&A expenses of 11 cents a share were in line with forecasts. But November sales guidance of $103.5-$105 million was lower than the $105.8 million that analysts expected.
Jabil shares jumped 7% after the company beat estimates and raised guidance. Sales jumped 45% to $3 billion, beating $2.84 million estimates, and November quarter sales guidance of $3.1-$3.3 billion was also better than expected.
Stocks posted strong gains once again Tuesday, as rising consumer confidence boosted investors’ hopes that the economy can avoid recession. The Dow posted its second-highest close ever, as investors once again shook off weak results in the homebuilding sector.
Chip stocks were mixed, with Intel
up on a new chip and competitor AMD
fell on a warning, and Micron
slipped on a downgrade.
also fell after lowering guidance.
The Nasdaq rose 12 to 2261, the S&P 500 gained 10 to 1336, and the Dow surged 93 to 11,669, just 53 points from its all-time closing high. Volume rose to 2.76 billion shares on the NYSE, and 2.08 billion on the Nasdaq. Advancers led 21-11 on the NYSE, and 16-13 on the Nasdaq. Upside volume was 72% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 201-28 on the NYSE, and 117-73 on the Nasdaq.