Investing.com -- The Dow extended its win streak Tuesday as tech reigned supreme ahead key week of earnings for the sector and the upcoming Federal Reverse decision due Wednesday.
The Dow Jones Industrial Average rose 0.1%, or 26 points, Nasdaq was up 0.6%, and the S&P 500 rose 0.3%.
Big tech in spotlight as Microsoft, Alphabet set to report; Chip stocks soar
Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) climbed higher into their quarterly results due after the market closes.
Both tech giants reported quarterly results after the market closed Tuesday that beat Wall Street estimates, but Alphabet took the investor plaudits, rising sharply in afterhours trading Tuesday, as investors cheered the latter's better-than-expected cloud growth.
Chip stocks also pushed the broader tech sector higher following a rally in NXP Semiconductors NV (NASDAQ:NXPI) after the major automotive chip supplier reported upbeat guidance and quarterly results that topped Wall Street estimates.
The stronger-than-expected results were driven by automotive growth that looks set to continue, Oppenheimer says, as NXP's partnership with Chinese EV manufacturer NIO for 4D imaging radar and China's $72B EV tax credit subsidy provides a tailwind.
Verizon delivers mixed quarterly results, General Motors drives in earnings beat, GE shines
Verizon Communications Inc (NYSE:VZ) was marginally higher as quarterly revenue that missed Wall Street estimates was offset by unexpected rise in its wireless subscriber base following plans to ramp up its enterprise customer base.
General Motors (NYSE:GM), meanwhile, fell more than 3% despite reporting quarterly results that topped analyst estimates as CEO Mary Barra said the automaker plans on making further cost-cutting measures that investors fear will stifle new products.
General Electric (NYSE:GE) lifted its full-year guidance after delivering better-than-expected quarterly results, sending its share price more than 6% higher to a 52-week high.
Alaska Air Lines guidance sours sentiment on airlines
Alaska Air Group Inc (NYSE:ALK) also reported quarterly results that topped analyst estimates, but the airline’s guidance’s for slower revenue growth spooked investors, and soured sentiment on the other airline stocks including Southwest Airlines Company (NYSE:LUV), American Airlines Group (NASDAQ:AAL), and Spirit Airlines (NYSE:SAVE).
Alaska guided annual revenue growth for 2023 to increase 8% to 10%, missing Wall Street estimates for growth of 11%.
PacWest reportedly in sale talks; shares plunge
PacWest Bancorp (NASDAQ:PACW) is in advanced discussion to sell the company to Banc of California (NYSE:BANC), the Wall Street Journal reported on Tuesday, citing unnamed sources familiar with the matter. Its shares sank 27%.
PacWest and PacWest confirmed the report after the markets closed on Tuesday, unveiling that they would be merging in an all-stock deal.
Under the deal, which is expected to close at the end of the year or the start of 2024, PacWest shareholders will receive 0.6569 of a share of Banc of California stock for each share of PacWest stock held.
[Update: Adds Google and Alphabet's quarterly results; Pacwest and Banc of California merger announcement]