U.S. and Europe stocks advanced Tuesday, after Boris Johnson beat Jeremy Hunt to become Britain’s next prime minister. Health services (up 15.4%), commercial (up 10.4%) and tech (up 8.2%) are among the sectors with strongest gains. The Dow Jones Industrial Average gained 0.31% to 27,256, the S&P 500 index gained 0.28% to 2,993, and the Nasdaq Composite Index rose 0.16% to 8,217.
Shares of The Sherwin-Williams Co. (SHW) gained more than 6% after announcing second-quarter results. The company posted earnings of $6.57 per share and revenues of $4.88 billion, reflecting a 2.3% decline from the comparable trimester of the previous year. The company beat earnings estimates by 21 cents but fell short of revenue expectations by $60 million.
"Sherwin-Williams delivered record results in net sales, Ebitda, profit before taxes and net operating cash in the second quarter, overcoming uneven demand in end markets outside the U.S. and persistently challenging selling conditions in North American architectural paint markets,” John G. Morikis, Sherwin-Williams chairman and CEO, said.
By segments, the Americas segment had net sales of $2.76 billion, up 5% year-over-year, due to higher paint sales volume across all end markets in North American stores. In the Consumer Brands segment, net sales increased 3.4% to $804.5 million due to a new customer program and higher selling prices. Net sales in Performance Coatings fell 3.8% to $1.32 billion.
Looking ahead to the third quarter, the company expects consolidated net sales to increase by a low single-digit percentage compared to the same quarter a year ago. For the full year 2019, the company expects consolidated net sales will increase 2-4% compared to the full year 2018. Adjusted diluted net income per share is expected to be between $20.40 and $21.40 per share.
During the quarter ended March 31, Tom Gayner (Trades, Portfolio) increased his position in the company 182% to 31,000 shares and Joel Greenblatt (Trades, Portfolio) added 35% to 6,531 shares. Steven Cohen (Trades, Portfolio) reduced his holding by 95% to 3,802 shares, and Ron Baron (Trades, Portfolio) trimmed his position by 32% to 13,485 shares.
Gainers
• Hasbro Inc. (HAS, Financial) + 8.25%
• Avery Dennison Corp. (AVY, Financial) + 4.98%
• BorgWarner Inc. (BWA, Financial) + 4.53%
• Coca-Cola Co. (KO, Financial) + 5.76%
• LKQ Corp. (LKQ, Financial) +2.93%
Losers
• Whirlpool Corp. (WHR, Financial) - 5.4%
• Lamb Weston Holdings Inc. (LW, Financial) -4%
• Arista Networks Inc. (ANET, Financial) -3.1%
• Qualcomm Inc. (QCOM, Financial) -3.1%
Global markets
The main European stock markets traded mostly higher. The U.K.'s FTSE 100 rose 0.70%, France's CAC 40 inched up 1.12%, Germany's Dax gained 1.81% and Spain's Ibex 35 rose1.32%.
In Asia, Japan's Nikkei 225 gained 0.95%, India’s BSE Sensex lost 0.13%, Hong Kong's Hang Seng advanced 0.34% and China's Shanghai Composite gained 0.45%.
Disclosure: The author holds no positions in any stocks mentioned.
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