Stocks Opened Higher on Earnings
U.S. stocks opened higher on Tuesday, as investors pick through earnings from several major companies as well as CPI data. The Dow Jones Industrial Average lately rose 95.38 points, or 0.71%, to 13,519.61 and the S&P 500 index gained 9.49 points, or 0.66%, to 1,449.62. The Nasdaq Composite climbed 12.91 points, or 0.42%, to 3,077.09.
U.S. consumer prices jumped 0.6% in September, the Labor Department said Tuesday, mostly because of higher gas costs. So-called core prices, seen as a better gauge of inflationary trends, rose a seasonally adjusted 0.1% for the third straight month. The core figure strips out volatile food and energy costs.
Goldman Sachs (GS) reported quarterly earnings and revenue that beat analysts’ expectations and the firm increased its dividend. The company posted third-quarter earnings excluding items of $2.85 per share, sharply up from a loss of 84 cents a share in the year-earlier period. Revenue surged to $8.35 billion from $3.59 billion a year ago, well above expectations. Goldman raised its dividend 8.7 percent, to $0.50 a share from $0.46.
UnitedHealth Group’s ( UNH) third-quarter net income jumped 23 percent to trump expectations, as preparations for retiring Baby Boomers started to pay off for the nation’s largest health insurer. UnitedHealth also raised its 2012 earnings forecast. Overall, UnitedHealth Group Inc. earned $1.56 billion, or $1.50 per share, in the three months that ended Sept. 30. That compares with $1.27 billion, or $1.17 per share, in last year’s third quarter.
Coca-Cola (KO) reported quarterly earnings in line with Wall Street estimates on Tuesday, but revenue fell slightly short. Net income was $2.31 billion, or 50 cents per share, in the third quarter that ended on Sept. 28, up from $2.22 billion, or 48 cents per share, a year earlier. Revenue rose 1 percent to $12.34 billion. Analysts were expecting revenue of $12.41 billion.
Online retail giant Amazon.com Inc (AMZN) said it will hire more than 50,000 seasonal employees at its fulfillment centers across the United States, as the company and its rivals gear up for the winter holiday season.