Sales are another story. Analysts expect revenue to shrink 0.7 percent in the second quarter. Huffman said he’s encouraged that many banks and makers of consumer-discretionary goods have reported stronger U.S. sales. “It’s an indication of the underlying growth in the U.S. economy versus other parts of the world,” he said.
Apple rose $21, or 5 percent, to $439.99 in after-hours trading, when the company reported earnings and revenue that beat Wall Street’s forecasts.
Among other stocks making big moves:
• Wendy’s jumped 55 cents, or 8.2 percent, to $7.23. The fast-food company’s net income came in above Wall Street’s expectations. Wendy’s also announced plans to sell 425 restaurants as franchises and raised its quarterly dividend by a penny to 5 cents.
• Marlboro maker Altria Group said its quarterly results fell short of analysts’ expectations. Altria’s stock sank 89 cents, or 2.4 percent, to $35.99.
• Netflix dropped $11.70, or 4.5 percent, to $250.26. The company said late Monday that it signed up fewer subscribers than financial analysts had projected. Big expectations have propelled Netflix’s stock up 170 percent since the start of the year, adding more pressure on the company to deliver amazing numbers.
In the market for U.S. government bonds, the yield on the 10-year Treasury note rose to 2.50 percent from 2.48 percent late Monday. Long-term interest rates have swung in a wide range since May, a result of traders speculating over when the Federal Reserve will begin pulling back on its bond-buying program.
The rate on the 10-year note, a benchmark for most loans, was trading at 1.61 percent on May 1. It rose as high as 2.75 percent by the second week of July.