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What Happened in the Stock Market Today

Steve Symington, The Motley Fool

U.S. stocks climbed on Tuesday following news that in-person talks between U.S. and Chinese trade officials are poised to restart next week. Investors also pored over a torrent of mostly encouraging earnings reports today. Both the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) rose nearly 0.7%.

Today's stock market

Index Percentage Change Point Change
Dow 0.65% 177.29
S&P 500 0.68% 20.44

Data source: Yahoo! Finance.

As for individual stocks, Hasbro (NASDAQ: HAS) and Coca-Cola (NYSE: KO) handily outpaced the broader market's gains thanks to their respective strong quarterly updates.

Chalkboard with five positive line charts, including a thick green arrow line in the center.

Image source: Getty Images.

Hasbro smashes estimates

Hasbro stock popped 10% to a new all-time high after the toymaker announced significantly better-than-expected second-quarter results. Revenue climbed 9% year over year (or 11% at constant currencies) to $984.5 million, translating into a 65% increase in adjusted net income to $99.3 million, or $0.78 per share.

Analysts, on average, were only modeling earnings of $0.50 per share on revenue of $956.8 million.

Chairman and CEO Brian Goldner called it a "high-quality" quarter, pointing out "positive consumer trends at retail and profitable growth led by several geographies and brand categories."

In particular, Hasbro saw revenue from its legacy franchise brands climb 14% to $576 million, including outsized gains for Play-Doh, Monopoly, and both the tabletop and digital versions of its Magic: The Gathering game. Partner brands sales increased 3% to $213.4 million, helped by licensed toys based on Disney's Avengers, Spider-Man, and Aladdin movies.

As such, Goldner said the company believes it's on track to meet its target for profitable growth in 2019.

Coke's refreshing quarter

Shares of Coca-Cola gained 6.1% after the soft drink giant released solid second-quarter results and raised its full-year revenue outlook.

Coke's net revenue climbed 6% year over year to $10 billion, driven by a 4% increase in concentrate sales and a 2% contribution from favorable pricing and product mix. That translated into adjusted net income of $2.72 billion, or $0.63 per share, up 4% year over year even despite a 9-percentage-point headwind from foreign currencies. 

"Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry," stated Chairman and CEO James Quincy. "Our progress is positioning the company to create more value for all of our stakeholders, including our shareowners."

For full-year 2019, Coke now sees organic revenue increasing 5% year over year, a modest boost from its old 4% target. The company also reaffirmed its outlook for 2019 adjusted earnings per share to rise or fall by 1% from $2.08 in 2018.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Hasbro and DIS. The Motley Fool is short shares of Hasbro and has the following options: long January 2021 $60 calls on DIS and short October 2019 $125 calls on DIS. The Motley Fool has a disclosure policy.