U.S. shares rebounded sharply on the heels of gains in Chinese and European shares. The S&P 500 (INDEXSP:.INX) added 1.1 percent to 2,068.34 at 11:15 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 1.1 percent to 17,702.71, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) added 1.3 percent to 4,971.48. Most followed shares included Alcoa, MasterCard, Yahoo!, YY, PepsiCo, Walgreens, Costco, L Brands, ConAgra Foods, WD-40, and T-Mobile US.
Alcoa (NYSE:AA) gained 3.2 percent. The aluminum producer unofficially kicked off the second-quarter earnings season yesterday, with an earnings report that beat analysts’ expectations on sales. The company’s strong aerospace and automotive divisions narrowly made up for a global aluminum glut that continues to depress prices. Alcoa also raised its forecast for an ongoing global aluminum surplus, which has been pressuring prices for nearly a year.
MasterCard (NYSE:MA) rose 1.3 percent to $93.72, shaking off news that the EU filed antitrust charges against the credit-card company, claiming it artificially raised the cost of card payments within the EU. MasterCard could eventually be fined if the EU's preliminary opinion is confirmed.
In technology stocks, Yahoo! (NASDAQ:YHOO) advanced 2.6 percent to $38.21 after saying it is rolling out a new fantasy-sports service designed for use on mobile devices.
ADRs of YY (NASDAQ:YY) picked up 3.7 percent after the social platform received a buyout offer from top executives that values the company at $3.7 billion, the latest Chinese business to receive such a proposal.
In consumer shares, PepsiCo (NYSE:PEP) advanced 0.1 percent to $95.71 after the beverage company posted adjusted second-quarter earnings of $1.32 a share, beating analyst estimates of $1.24 a share. Pepsi's profit margins expanded during the quarter, and it raised its full-year forecast although it adds that currency will have a negative impact of 11 percentage points on full-year profit.
Walgreens Boots Alliance (NASDAQ:WBA), a drugstore chain, added 4.7 percent to $89.90 after its third-quarter profit beat expectations. It also named Stefano Pessina chief executive officer, lifted its full-year outlook and increased its quarterly dividend by 6.7 percent to 36 cents per share.
Costco Wholesale (NASDAQ:COST) dropped 1.1 percent to $138.32. The largest U.S. warehouse-club chain said sales at stores open for at least one year slipped 1 percent in June, following a rare quarterly drop in the metric in its latest quarter.
L Brands (NYSE:LB) decreased 1.9 percent to $84.34 after the specialty retail business said its June sales rose from the previous year, but the increase was less than Wall Street had expected.
ConAgra Foods (NYSE:CAG) rose 0.7 percent to $44.98. The packaged food company has agreed to add two members to its board of directors as part of an agreement with Jana Partners LLC, which had been pushing for change citing the company’s ailing private-label business.
WD-40 (NASDAQ:WDFC) fell 6.4 percent to $83.10 after the specialty-chemicals firm reported earnings that missed Wall Street’s forecasts. It also cut its guidance for the year. The company cites the strong dollar and quality problems in Asia for a slide in sales.
In other stocks, T-Mobile US (NYSE:TMUS) rose 1.4 percent. The Bellevue, Washington-based company added 2.1 million customers in the second quarter, 41 percent more than a year earlier, bringing its total customers to 58.9 million.