All three major US stock indexes were down in late-morning trading Tuesday, as the yield on the US 30-year Treasury topped 5.33%, a 19-year high, on long-term inflation and debt concerns.
In company news, Home Depot (HD) reported fiscal Q2 adjusted earnings Tuesday of $4.92 per diluted share, up from $4.68 a year earlier and above the FactSet consensus analyst estimate of $4.73. Fiscal Q2 net sales were $47.86 billion, up from $45.28 billion a year ago and above the FactSet consensus of $47.24 billion. Separately, the company said it has launched nationwide express delivery to provide product fulfillment in three hours or less for a flat fee. The service does not require a subscription or membership and uses more than 2,000 store locations in the US as fulfillment hubs to deliver construction materials and tools directly to homes or job sites, the company said. Home Depot shares were up 0.8% around midday.
Klarna Group (KLAR) reported Q2 EPS of $0.01, swinging from a loss of $0.14 a year earlier and above the FactSet consensus of a loss of $0.06. Second-quarter revenue was $1.04 billion, up from $823 million a year ago and above the FactSet consensus of $996.5 million. For Q3, the company expects revenue of $940 million to $980 million, below the FactSet consensus of $1.11 billion. For full-year 2026, Klarna expects revenue of $4.08 billion to $4.16 billion, down from its prior outlook of greater than $4.34 billion and below the FactSet consensus of $4.42 billion. In addition, Klarna said it has planned transitions for its chief financial officer and chief marketing officer, effective early 2027. CFO Niclas Neglen and CMO David Sandstrom will remain in their roles through the transition, the company said, adding that a search for a New York-based CFO is underway. Klarna shares were down 21.7%.
Walt Disney (DIS) and its ABC unit sued the US Federal Communications Commission on Tuesday to block an early review of broadcast licenses for eight ABC stations, according to multiple media reports, which cited a lawsuit filed in a Washington, D.C. federal court. Disney shares were up 1%.
Amylyx Pharmaceuticals' (AMLX) investigational post-bariatric hypoglycemia treatment Avexitide met its primary endpoint in a phase 3 clinical trial, the drugmaker said Tuesday. The drug showed a 55% reduction in the composite rate of level 2 and 3 hypoglycemic events compared to a placebo and also met all secondary endpoints in the 78-patient trial, the company said. Amylyx shares were up 48%.
KKR (KKR) has offered to buy natural-gas and electricity distributor UGI (UGI) for $42.50 a share, or roughly $9 billion, The Wall Street Journal reported Tuesday, citing people familiar with the matter. KKR shares were down 1.2%, while UGI shares were up 12.5%.
Baidu (BIDU) reported Q2 non-GAAP earnings Tuesday of 7.22 Chinese renminbi ($1.06) per diluted American depositary share, down from 13.58 renminbi a year earlier and below the FactSet consensus of $9.35 renminbi. Second-quarter revenue was 31.33 billion renminbi, down from 32.71 billion renminbi a year ago and below the FactSet consensus of 31.78 billion renminbi. Baidu shares were down more than 12%.
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