U.S. stocks were trending lower today as another day of third-quarter earnings reports were the main focus of traders. Boeing Co (NYSE:BA) was doing well on better-than-expected earnings, but The Coca-Cola Co (NYSE:KO) was flat after beating on EPS but missing estimates on revenue.
Only 44% of the companies who have reported have beaten estimates on revenues so far.
There was no economic data forthcoming today, but the next two days should be busier on that front. Crude oil was down another 2% and was trading near $45 as oil approaches the lower end of its recent trading range.
The Dow Jones Industrial Average slid 0.3%, the S&P 500 was off 0.6%, and the Nasdaq declined by 0.8%. Sectors were generally lower, but industrial and consumer goods stocks were holding their own today.
Earnings and M&A continue to make big winners out of a handful of companies every day. Today, General Motors Company (NYSE: GM), Tupperware Brands Corporation (NYSE: TUP) and Lam Research Corporation (NASDAQ:LRCX) finished as three of today’s best stocks.
General Motors Company (GM)
GM put investors in the driver’s seat today after reporting third-quarter adjusted 2015 earnings of $1.50 per share, well ahead of the Zacks Consensus Estimate of $1.17. Revenue of $38.8 billion was just slightly below the analysts’ predictions for $39.1 billion.
Earnings would have been even higher except for the ignition switch recall, which knocked off about 66 cents per share.
Nevertheless, GM gapped almost 6% higher and is now back above its 200-day moving average, so the future looks bright for the long time automaker.
Tupperware Brands Corporation (TUP)
Tupperware, a household name and consumer staple for many years, also reported strong third-quarter earnings.
TUP stock was up more than 8% after reporting earnings of 79 cents per share, well ahead of the 71 cents the street was looking for from the company. Revenue of $521 million was also better than the street’s view of $516.5 million.
TUP reported an 18% gain in their sales in China, and a 21% revenue gain in South America.
Lam Research Corporation (LRCX)
LRCX stock surged 10% higher this morning after announcing it is purchasing KLA-Tencor Corp (NASDAQ:KLAC) for some $10.6 billion. However, by day’s end, investors lost some of their enthusiasm, and LRCX pulled back to finish just 1% higher.
Under the terms of the deal, KLA shareholders will get $5 billion in cash and $5.6 billion in LRCX stock, and will then own about 32% of Lam Research. The deal should close sometime next year.
This merger is one more in the semiconductor sector that has seen many other mergers already this year. In fact, SanDisk Corporation (NASDAQ:SNDK) also announced today that it has been purchased by Western Digital Corp (NASDAQ:WDC) for $19 billion. The big fish keep swallowing the little fish.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
