Here Are Three Hot Things to Know About Stocks Right Now
- The S&P 500 I:GSPC ended just 14 points off its all-time high of 2,872.87 set on Jan. 26.
- Tesla shares surged after CEO Elon Musk tweeted he's considering taking the company private.
- Twilio Inc. (TWLO) - Get Report rose 18% after it beat earnings estimates and raised full-year guidance.
- Zillow Group Inc. (Z) - Get Report tumbled 15% after quarterly earnings missed estimates and it purchased Mortgage Lenders of America.
Wall Street Overview
Stocks held onto their gains to close higher on Tuesday, Aug. 7, as earnings continued to impress and the S&P 500 I:GSPC edged closer to the all-time high it reached in January.
The Dow Jones Industrial Average I:DJI rose 127 points, or 0.5%, to 25,629, and the S&P 500 gained 0.3%, pushing the index closer to its all-time high of 2,872.87 achieved on Jan. 26. The Nasdaq I:IXIC rose 0.3%.
With around 71% of the S&P 500 having issued quarterly reports so far this season, earnings are expected to grow by 23.5% over the three months ended in June, a figure that would top the gains recorded over the first quarter and mark the best reporting period in eight years. More than 79% of companies have beaten consensus earnings estimates, according to Thomson Reuters data, well ahead of the 72% average for the past four quarters.
Tesla (TSLA) - Get Report shares surged after CEO Elon Musk tweeted he was considering takeing the company private at $420 a share. The stock ended up 11% at $379.56 after trading resumed late in the session.
- Tesla Soars as Musk Doubles Down on Controversial 'Going Private' Tweet'
- $420 for Tesla? Elon Musk Be Smoking Something
- Tesla Bondholders Could Be Just as Happy as Shareholders If Musk Sold Out
- Musk's 'Going Private' Tweets Raise Big Legal Questions
- 3 Reasons Why Elon Musk Is 100% Right in Wanting to Take Tesla Private
Carl Icahn launched a campaign on Tuesday to block Cigna Corp.'s (CI) - Get Report planned $67 billion acquisition of Express Scripts Holdings Co. (ESRX) , the largest pharmacy benefits management group in the U.S., calling the purchase price "ridiculous" in the face of competition from Amazon.com Inc. (AMZN) - Get Report and other "existential risks."
Cigna rose 0.2%, and Express Scripts shares were up 2.8%. Cigna shredded Icahn in a letter to shareholders after the close.
Bausch Health Cos. (BHC) - Get Report , formerly Valeant Pharmaceuticals International Inc., posted a second-quarter loss of $873 million, or $2.49 a share, wider than a year-earlier loss of 11 cents. Revenue of $2.13 billion beat Wall Street estimates. The stock rose 4.5% on Tuesday.
Earnings reports are also expected Tuesday from Walt Disney Co. (DIS) - Get Report , Fossil Group Inc. (FOSL) - Get Report , Papa John's International Inc. (PZZA) - Get Report , Wendy's Co. (WEN) - Get Report and Snap Inc. (SNAP) - Get Report .
TheStreet's sister publication RealMoney explored Twilio as part of its "Stock of the Day" coverage.
Weight Watchers International Inc.
fell 15% on Tuesday despite a 28% year-over-year increase in subscribers at the weight-loss company during the second quarter and a 20% jump in revenue to $410 million.
The 4.5 million subscribers in the second quarter was, however, a decline from 4.6 million subscribers in the first quarter. TheStreet talked with Weight Watchers CEO Mindy Grossman about the quarter.