Gotrade News - Tuesday was a heavy morning for US earnings. A wave of companies reported second-quarter numbers, and most beat estimates. Plenty raised their full-year guidance, too. General Motors, 3M and Hasbro stood out. All three cleared forecasts and lifted their outlooks.
Stocks opened higher, helped by a bounce in chip names. The S&P 500 rose 0.63% to 7,489.95. The Nasdaq added 1.04% to 25,772.55, and the Dow inched up 0.15% to 51,916.79 at the open, according to Investing.com.
Still, the day came with a catch. Beating estimates wasn't enough on its own. MSCI and Halliburton both fell even after topping forecasts.
Key Takeaways
- General Motors raised its full-year 2026 EBIT-adjusted guidance for the second time, to $14.0 billion to $16.0 billion.
- 3M and Hasbro both beat estimates and lifted full-year profit outlooks, with Hasbro shares jumping about 11%.
- MSCI fell more than 7% and Halliburton slipped even after earnings beats, as costs and regional weakness took focus.
GM Raises Full-Year Guidance a Second Time on Truck and SUV Demand
Start with Detroit. General Motors (GM) pulled in $48.0 billion of revenue for the quarter. Net income to stockholders came to $1.3 billion. EBIT-adjusted was $3.9 billion.
But the guidance is what really caught the eye. GM lifted its full-year 2026 EBIT-adjusted target for the second time this year. It now sees $14.0 billion to $16.0 billion, per its Q2 earnings release. The old call topped out at $15.5 billion.
Its adjusted diluted EPS view rose as well. Think $12.00 to $14.00, against $11.50 to $13.50 before. Why the confidence? Trucks and SUVs. GM leaned on strong demand for its high-margin full-size pickups.
3M and Hasbro Lift Full-Year Profit Outlooks
3M (MMM) earned an adjusted $2.40 per share. That is up 11% from a year ago. Organic growth reached 5.4%. The adjusted operating margin landed near 24.9%.
3M raised its full-year adjusted EPS view as well, now $8.80 to $8.95 against $8.50 to $8.70 before. Chief Executive William Brown described "a strong second quarter, exceeding expectations with mid-single-digit sales growth."
Hasbro was the day's big mover. The stock jumped about 11%. Hasbro (HAS) posted adjusted earnings of $1.28 per share. Analysts had looked for $1.14. Revenue reached $1.14 billion, ahead of the $1.07 billion Wall Street expected, according to Investing.com.
It now sees full-year revenue growth of 5% to 7%, versus 3% to 5% before. Credit Magic: The Gathering. The Wizards of the Coast and digital gaming unit grew 27%.
Not Every Beat Was Rewarded: MSCI, Halliburton and Schwab
Other names had a rougher time. MSCI earned an adjusted $4.94 per share, right in line with estimates. The stock still dropped more than 7%. Costs were the sticking point. MSCI now expects full-year expenses of $1.54 billion to $1.58 billion, a touch above the earlier $1.49 billion to $1.53 billion. It blamed acquisition costs and heavier investment spending, according to Investing.com.
Halliburton told a similar story. It beat, with adjusted earnings of $0.55 per share on $5.7 billion in revenue. The shares still slid. Its weak spot was the Middle East. Revenue there and across Asia fell to $1.3 billion, down 2% from the prior quarter. Work had slowed in Kuwait, Iraq and Qatar. Charles Schwab beat as well, but higher expenses cooled the reaction.
Novartis Beats as Cancer and MS Drugs Offset Entresto Decline
Healthcare offered a cleaner win. Novartis posted second-quarter net sales of $14.41 billion, above the $13.69 billion consensus. Its core operating margin came in at 41.2%, according to Investing.com.
| Company | Q2 Result | Guidance / Reaction |
|---|
| General Motors (GM) | Revenue $48.0B, EBIT-adj $3.9B | Raised FY26 EBIT-adj to $14.0-16.0B |
| 3M (MMM) | Adj EPS $2.40, +11% YoY | Raised FY26 EPS to $8.80-8.95 |
| Hasbro (HAS) | Adj EPS $1.28 vs $1.14 est | Shares +11%, raised revenue outlook |
| MSCI | Adj EPS $4.94, in line | Shares -7%, raised expense forecast |
| Halliburton (HAL) | Adj EPS $0.55, revenue $5.7B | Middle East revenue -2% QoQ |
| Novartis (NVS) | Net sales $14.41B | Reaffirmed FY sales growth outlook |
Newer medicines did the heavy lifting. Kisqali, a cancer drug, climbed 44% to $1.695 billion. Kesimpta, used for multiple sclerosis, rose 32% to $1.424 billion. They had a hole to fill.
Entresto, once a top seller, dropped 50% to $1.181 billion. Guidance stayed put. Novartis is still calling for low single-digit sales growth this year. And it only gets busier from here. Tesla and Alphabet both report on Wednesday.
Tuesday's lesson was simple enough. Strong numbers and higher guidance are pulling the market back up. But miss on costs or a weak region, and investors will sell the beat anyway.
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