Things keep looking up, up, up for investors. Tuesday was a record-breaking performance for the S&P 500, which rose 0.3% to an all-time high of 2,137.16. The Dow Jones Industrial Average, meanwhile, enjoyed a 0.4% improvement.
Seagate Technology PLC (STX)
STX shares are soaring in early Tuesday trading, though the news isn’t good for everyone involved with the data storage provider.
Seagate announced an improved revenue estimate for Q4 2016, saying it will now make $2.65 billion thanks to selling more hard drives, versus a previous prediction of $2.3 billion.
However, Seagate also announced that it would be taking a huge whack at its workforce, cutting 14% of the company’s jobs for a total of 6,500 by the end of next fiscal year. In a June announcement, Seagate had said it only planned on cutting 1,600 jobs.
STX will take a $164 million pretax charge as part of the restructuring. But that’s not bothering investors and traders, who are bidding Seagate higher by more than 13% Tuesday morning.
United Continental Holdings Inc (UAL)
United Airlines should head higher on Tuesday amid a report on second-quarter passenger unit revenue.
Passenger unit revenue — which calculates passenger revenue by available seat miles — declined between 6.5% and 6.75% on the period. The figure isn’t great, but it does beat the analyst expectation for a 7.5% slip over the quarter.
The recent setback in United’s passenger unit revenue can be partially attributed to a strong U.S. dollar, which has had a negative impact on foreign ticket sales.
UAL shares were up 2% in early Tuesday trading, as the airline joins its brethren in trying to recoup its losses from the post-Brexit fallout.
Xerox Corp (XRX)
The imaging services provider plans on splitting into two companies before the end of the year. RR Donnelley will be part of its main business, which will focus on digital copying and imaging.
With a market value of about $3.9 billion, buying RRD will come at a steep price for Xerox. However, the move may be worth it, as the company has raked in $11 billion in revenue in each of the past two fiscal years.
Earlier this year, RR Donnelley had announced plans to split into three companies, but those plans would be scrapped if the purchase goes through.
XRX shares were more than 2% higher in Tuesday’s premarket trade, while RRD stock jumped 7%.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.