Monday was a strong day for U.S. stocks, led by financials with a 1.1% push. The S&P 500 Index and the Nasdaq Composite surged 0.5% apiece, while the Dow Jones Industrial Average gained 0.7%.
Tuesday’s trade should again be dominated by earnings, with Arch Capital Group Ltd. (NASDAQ:ACGL) and OneMain Holdings Inc (NYSE:OMF) among companies doling out their latest quarterly reports. However, General Motors Company (NYSE:GM) is making hay on some M&A chatter.
Here’s what you should know:
General Motors Company (GM)
GM shares were up strongly on Tuesday morning on news that French carmarker PSA is considering buying out the American automaker’s Peugeot division.
A company spokesperson confirmed that PSA “is exploring a number of strategic initiatives with GM with the aim of increasing its profitability and operating efficiency, including a potential acquisition of Opel.”
If PSA is successful, it likely would become Europe’s No. 2 automaker behind Volkswagen (OTCMKTS:VLKAY).
The deal is being very well-received by GM shareholders amid a lackluster year in which General Motors is underperforming the market, thanks in part to an earnings report that showed GM’s European business lost money for the 16th straight year.
GM stock was up more than 3% in early Tuesday trade.
OneMain Holdings Inc (OMF)
OMF shares were surging on Tuesday thanks to a positive fourth quarter.
Earnings came in at 80 cents per share, which did miss the consensus estimate by a penny. However, the figure was significantly better than the 66 cents it posted in the year-ago quarter.
Before considering taxes, earnings in the Consumer and Insurance segment were $175 million on an adjusted basis. The number was $33 million better year-over-year. Real Estate adjusted pretax losses also thinned out, from $34 million last year to $7 million in Q4 2016.
For the full fiscal year, the company earned $1.59 per diluted share, handily topping the $1.72 per share loss from the prior year.
OMF stock started Tuesday up 9%.
Arch Capital Group Ltd. (ACGL)
Arch Capital Group reported strong earnings late Monday, but ACGL wasn’t quick to respond.
The company managed to bring in 50 cents over the holiday period, which amounted to $1.13 per share when adjusted for one-time gains and costs. Analysts were expecting non-GAAP earnings of $1.01 per share.
Arch Capital also posted revenue that topped expectations at $966.5 million in the period.
A few other highlights from the report included 8.3% growth in gross premiums written, and 4.5% improvement in net investment income. Underwriting leaped by nearly 140% to $42.3 million. The mortgage segment was particularly strong, too, with gross premiums written here jumping just more than 50.7% to $138.3 million.
Nonetheless, ACGL stock was trading flat in early Tuesday trade.