Positive Earnings Push the Dow Higher
Blue-chip stocks are higher today thanks to upbeat earnings from the likes of DuPont and United Technologies . With roughly an hour left in the trading session, the Dow Jones Industrial Average is up by 55 points, or 0.35%.
Industrial conglomerate United Technologies reported earnings today that beat on the bottom line but missed on the top. For the three months ended June 30, the company logged revenue of $16.01 billion versus a consensus estimate of $16.4 billion. Its earnings per share came in at $1.65, beating the $1.58 forecast.
More importantly, the company raised its guidance for the remainder of the year. According to CEO Louis Chenevert: "Strong execution, additional restructuring savings, and growing backlogs give us confidence to increase the lower end of our earnings per share range. We now expect earnings per share of $6.00 to $6.15, growth of 12 to 15 percent, up from $5.85 to $6.15 previously."
To read more about United Technologies' earnings, click here.
Meanwhile, chemical giant DuPont said it earned $1.28 a share on an adjusted basis, in line with its previous guidance. Like United Technologies, DuPont also sounded an upbeat tone going forward. "We anticipate second half earnings will be significantly better than last year's second half," CEO Ellen Kullman said. "We expect to deliver full-year earnings modestly above 2012 results, overcoming steep declines in the titanium dioxide market and economic headwinds in Europe and parts of Asia."
Stocks were nevertheless kept in check by a downbeat reading on manufacturing activity. According to the Federal Reserve Bank of Richmond, industrial production declined in the central Atlantic region this month. The index that tracks the measure fell from seven in June to -11. As an analyst told The Wall Street Journal, "It was a surprise and markets don't like surprises, especially on the negative side."
Alternatively, the Federal Housing Finance Agency released data this morning showing that home prices rose by 7.3% in May on a year-over-year basis. It was the 16th consecutive month of year-over-year gains. To read more about this, click here.
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