Updated from 9:41 a.m.
Stocks added to slight gains on Tuesday as the earnings season hit its final stretch.
The S&P 500 was up 0.25%, the Dow Jones Industrial Average added 0.22%, and the Nasdaq gained 0.36%. The S&P 500 hit a new intraday record high of 2,186.85.
Trading has been range-bound so far this week, with investors reluctant to make any big bets after a massive rally on Friday pushed the S&P 500 and Nasdaq to new records. A blowout jobs report released on Friday eased worries over the U.S. economy, though increased the chances of a Federal Reserve rate hike in coming months.
Roughly 90% of S&P 500 companies have reported earnings so far, and while the quarter hasn't been an overall success, the majority of companies have exceeded lowered estimates. This season, 70% of companies that have reported have exceeded analysts' estimates, according to Thomson Reuters. Retailers and media companies will have their chance to shine this week, bringing up the tail-end of the earnings season.
Valeant Pharmaceuticals (VRX) surged more than 13% after announcing reorganization plans. New chief executive Joseph Papa said the company would head in a "new strategic direction" that involved restructuring its segments, but did not go into greater detail. The drugmaker also reaffirmed lowered full-year guidance and reported sharp declines in quarterly profit and sales.
Coach (COH) fell 1.5%, reversing earlier gains achieved after a profit and sales beat. The accessories retailer earned an adjusted 45 cents a share, 4 cents above estimates, on the back of solid sales growth in North America. Same-store sales in the region grew 2%, topping consensus of 1.8% growth. Full-year revenue growth is expected in the low-to-mid single-digit percentage range, the company said. Analysts had expected 4.1% growth.
Gap (GPS - Get Report) fell more than 6% after reporting disappointing sales over July. Comparable-store sales fell 4%, largely due to a 14% decline at its Banana Republic stores. Second-quarter guidance came in better than expected, though. The retailer anticipates quarterly earnings of at least 58 cents a share, a dime higher than consensus.
Twilio (TWLO - Get Report) rose 0.5% after reporting above-consensus quarterly performance, its first release as a public company. The cloud-communications developer reported an adjusted net loss of 8 cents a share, nearly half what analysts expected. Sales also came in better than expected.
Lending Club (LC - Get Report) announced another C-suite shakeup on Monday afternoon, noting that chief financial officer Carrie Dolan would leave the company. Corporate controller Bradley Coleman will hold the position until a permanent replacement is found. The peer-to-peer lender has been reeling since the departure of its chief executive and co-founder amid regulatory probes. The company also reported a disappointing quarter with severance charges taking a bite out of its bottom line. The stock fell more than 4%.
U.S. productivity unexpectedly fell in the second quarter for a third straight quarter, according to the Bureau of Labor Statistics. Productivity declined by 0.5% over the most recent quarter, compared to expected 0.5% growth. Unit labor costs rose 2%, a faster pace than an expected 1.8% increase.
Delta Airlines (DAL - Get Report) plans to cancel even more flights on Tuesday after a technical glitch on Monday grounded thousands. The airline said nearly 250 flights will be canceled Tuesday after roughly 1,000 of its 6,000 flights on Monday were called off. Delta said it is currently working to "reset the operation and get crews, aircraft and other operational elements in place." Delta has offered refunds and vouchers to customers affected by the system outage.
Buffalo Wilds Wings (BWLD) was upgraded to neutral from underperform at Credit Suisse. The firm said activist shareholders should place a floor under the stock, given the opportunity for restructuring.