Credit: Shutterstock photoThe Dow jumped out ahead of the pack at Tuesday's open, as the morning's long list of weighty reports stirred an early rally.
[ibd-display-video id=2402252 width=50 float=left autostart=true]The Dow Jones industrial average grabbed an early 0.7% gain, lifted by Caterpillar ( CAT ), 3M ( MMM ) and United Technologies ( UTX ). The S&P 500 and Nasdaq Composite each added 0.2%.
CAT, 3M, Polaris GM, Alexion Soar; Whirlpool Slides
On the Dow, Caterpillar thundered ahead 6% after its third-quarter earnings and revenue trounced analyst estimates, and management hoisted its full-year guidance to well above consensus views. Caterpillar shares are extended, up 30% since a July rebound from 10-week support.
Dow peer 3M climbed 3.7% as third-quarter results and full-year guidance easily outpaced analyst forecasts. The gain lifted shares beyond a buy range above a flat-base buy point at 214.67.
United Technologies opened up 0.9% after reporting third-quarter revenue and earnings above analyst expectations, and lifting its full-year profit guidance above the consensus target. The stock had cleared a 120.05 buy point in a cup-with-handle base Friday.
General Motors ( GM ) perked up 2% on its third-quarter results . Earnings and revenue easily topped analyst projections, but free cash flow came in below expectations. The stock is extended, 27% above a handle buy point of 36.73.
Snow machine and off-road vehicle maker Polaris ( PII ) spun up a 9% opening gain. The Medina, Minn. company reported a strong third-quarter beat and raised its full-year revenue and earnings guidance above targets.
Whirlpool (WHR) collapsed 9% as RBC Capital downgraded the stock to sector perform, from its top pick list, after third-quarter earnings and revenue fell short of expectations late Monday. The appliance maker also announced a restructuring initiative and said Sears (SHLD) would no longer sell Whirlpool products due to a price dispute.
Quarterly reports sent Core Labs (CLB) up 6%, while home-building supplies manufacturer Masco (MAS) managed a 0.5% gain. Database software developer Commvault Systems (CVLT) toppled 11% after its fiscal Q2 report.
Beyond earnings news, Apple (AAPL) shed its early losses and climbed 0.3%, while the four FANG stocks built on early gains. Netflix (NFLX) priced a $1.6 billion high-yield bond offering after Monday's close, as it gears up for an ambitious 2018 capital spending program.
Ichor Holding (ICHR) rose 2% and swung out to an early lead among IBD 50 plays . The stock ended Monday 34% past a handle buy point of 25.41.
Alexion Pharmaceuticals (ALXN) rolled up a 5% gain. The biotech announced the Food and Drug Administration had approved its Soliris as a treatment for generalized myasthenia gravis in adult patients. Alexion has been trading below its 10-week line of support, and below a 149.44 buy point in a flat base.
Xi Solidifies Leadership In China; ECB Policy In Focus
Researcher Markit releases its preliminary composite purchasing managers index for October at 9:45 a.m. ET. Virginia's Richmond Federal Reserve Bank releases its regional manufacturing index at 10 a.m. ET.
China's markets ended mixed as the country wrapped up the Communist Party's political gathering that entered President Xi Jinping's name and political ideology into the party constitution. The move is a rare distinction that solidifies Xi's sway over the country's institutional power, and recognizes him as the country's ruler for life. Hong Kong's Hang Seng Index slipped 0.5%. The Shanghai Composite rose 0.2%.
Japan added a 17th day to its run-up, gaining 0.5% Tuesday and lifting the rally's overall advance to 13.3%.
Europe's markets turned more narrowly mixed in afternoon trade, as investors began to look toward the European Central Bank's policy announcement scheduled for Thursday. The bank is widely expected to announce a wind-down of its monthly bond purchase program. The CAC-40 in Paris ran ahead of the region's benchmarks, up 0.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
