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Key Takeaways
- The S&P 500 rebounded on Tuesday, Aug. 6, 2024, adding 1% to notch its first positive session since economic concerns began roiling markets last week.
- Shares of Band-Aid parent Kenvue soared after the consumer health products company topped quarterly sales estimates and gave an upbeat outlook.
- Uber shares jumped after the ridesharing firm reported that second-quarter profits more than doubled from the prior year.
Major U.S. equities indexes rebounded on Tuesday following three turbulent days of trading that saw heightened levels of economic uncertainty send stocks tumbling.
The S&P 500 and the Nasdaq were both up 1% on the day, clawing back a portion of the previous sessions’ steep losses. The Dow gained 0.8%.
Shares of Kenvue (KVUE), parent company of Band-Aid, Tylenol, and other consumer health care products, posted the strongest performance in the S&P 500, soaring 14.2%. The former unit of Johnson & Johnson (JNJ) beat second-quarter sales estimates and affirmed its above-consensus guidance for the full year. CEO Thibaut Mongon said Kenvue remains in the early stages of a transformation “into a bolder, more agile organization.”
Uber Technologies (UBER) shares added 11.8% after the ridesharing company drove past analysts’ revenue and net income estimates for the second quarter. Gross bookings jumped 19% from
a year ago, while profits more than doubled, reaching $1.02 billion.
Shares of Royal Caribbean Cruises (RCL) sailed 8.5% higher after analysts at JPMorgan called Royal Caribbean “best in class” in the cruise industry. The analysts cited Royal Caribbean’s popularity among travelers, cost discipline, and growth plans as support for their “overweight” rating on the stock.
Shares of Henry Schein (HSIC), a distributor of dental and medical equipment, dropped 8%, marking the heaviest losses of any S&P 500 constituent. Henry Schein’s second-quarter sales and
profits fell short of expectations, and the company said it could take longer than expected for it to recuperate from a cybersecurity breach that disrupted its operations last year.
Expeditors International of Washington (EXPD) shares fell 4.6% after the freight forwarding and logistics firm reported a year-over-year decline in profits, pressured by higher costs. Although Expeditors International posted an increase in airfreight tonnage volume from a year ago, its ocean container volume declined.
Vulcan Materials (VMC) shares sank 4.3% after the provider of construction materials reported
lower-than-expected quarterly sales and profits. The maker of construction aggregates also cut its forecast for full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Vulcan noted that high interest rates remain a drag on the housing sector, which lowers demand for its products.