Stocks ended higher on Tuesday, after International Business Machines Corp. and Merrill Lynch & Co. Inc. beat analysts’ expectations with better-than-expected earnings.
The Dow Jones Industrial Average rose 71.57, or 0.7 percent, to 10,646.56 The Standard & Poor’s 500 Index rose 8.22, or 0.7 percent, to 1,229.35. The Nasdaq Composite Index rose 28.31, or 1.3 percent, to 2,173.18.
IBM second-quarter earnings beat expectations, marking the company’s return to strength after a dismal first quarter. IBM reported net income of $1.8 billion ($1.12 per share), compared with $1.7 billion ($1.01) in the year-earlier period. Revenues slipped 4 percent to $22.3 billion.
And Merrill Lynch & Co. said second-quarter profit rose 5.6 percent, as investment banking revenue increased despite tough market conditions. The company reported net income of $1.13 billion ($1.14 per share), compared with $1.07 billion ($1.05) in the year-earlier period. Revenues jumped 20 percent to $6.3 billion.
Among local companies, shares of Global ePoint, Inc. gained 6.8 percent to $3.60 after the City of Industry-based security products and systems manufacturer announced that Astrophysics received an order for 13 baggage screening X-ray machines from Saudi Arabia. Global ePoint recently entered into a non-binding letter of intent to acquire Astrophysics in a transaction scheduled to close in the third quarter.
IndyMac Bancorp Inc. rose 3.9 percent to $44.30 after the Pasadena-based real estate acquisition and development firm’s stock was rated “buy” in new coverage by analyst Robert Lacoursiere at Banc of America. The price target was set at $47 per share.
And Skechers USA Inc. edged up 3.6 percent to $14.88 after the Manhattan Beach-based footwear company’s stock was rated “buy” in new coverage by analyst Randy Scherago at First Albany Corp. The price target was set at $17 per share.