U.S. stocks advanced on Monday morning. The Dow Jones Industrial Average rose more than 260 points, or 1.03%, to 24,948, the S&P 500 index gained 1.27% to 2,692 and the Nasdaq Composite Index advanced 0.99% to 7,240.
Shares of Tower Semiconductor Ltd. (TSEM, Financial) fell more than 16% on Monday after the company posted third-quarter earnings of 37 cents per share on $322.6 million in revenue, reflecting a 9% decline year over year. The company fell 4 cents short of earnings estimates and $12.43 million short of revenue expectations.
Gross and operating profits for the quarter were $73 million and $39 million, down from $89 million and $55 million in the prior-year quarter. Earnings before interest, taxes, depreciation and amortization were $89 million, representin a 28% EBITDA margin.
Moreover, free cash flow was $29 million, with $69 million generated from operations and $41 million invested in fixed assets.
Looking ahead to the fourth quarter, revenues are expected to be approximately $340 million.
Gainers
- Red Hat Inc. (RHT, Financial)
- Goodyear Tire & Rubber Co. (GT, Financial)
- Ford Motor Co. (F, Financial)
- General Motors Co. (GM, Financial)
- Nielsen Holdings PLC (NLSN, Financial)
Losers
- Harris Corp. (HRS, Financial)
- L3 Technologies Inc. (LLL, Financial)
- Lockheed Martin Corp. (LMT, Financial)
- Anadarko Petroleum Corp. (APC, Financial)
- Western Digital Corp. (WDC, Financial)
Markets
The main European stock markets traded higher. The U.K.'s FTSE 100 gained 1.71%, France's CAC 40 rose 1.03%, Germany's Dax advanced 1.89% and Spain's IBEX 35 inched up 1.52%.
In Asia, Japan's Nikkei 225 fell 0.16%, India’s BSE Sensex gained 2.15%, Hong Kong's Hang Seng jumped 0.38% and China's Shanghai Composite lost 2.18%.
Disclosure: The author holds no positions in any stocks mentioned.
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