Southwest Airlines Co. (LUV) jumped 4.2 percent, the most in the S&P 500, to $9.63. The company was raised to buy from neutral at Sterne, Agee & Leach Inc. by equity analyst Jeffrey Kauffman. The 12-month share-price estimate is $15.
DuPont Co. added 0.4 percent to $47.65. The world’s largest producer of titanium dioxide said some reports overstated the “softness” in the market for the pigment used in paint.
Wolverine World Wide Inc. (WWW) rallied 6.9 percent to $40.97. The owner of the Hush Puppies shoe brand advanced after reaffirming that full-year profit may top analysts’ estimates.
Reluctance among U.S. companies to push earnings estimates higher in the second quarter indicated the period’s results may be disappointing, according to Pierre Lapointe, Brockhouse & Cooper Inc.’s global macro strategist.
Only 19 companies made profit projections last month that beat analysts’ average estimate, according to data compiled by Bloomberg and summarized by Brockhouse in a July 5 report. The total was the lowest for any June since the figures were first compiled in 2000 and the second-lowest for any month after the 14 last September.
“Investors did not get many indications from companies on the strength of earnings,” Lapointe, who is based in Montreal, wrote with colleagues Alex Bellefleur and Frances Donald. “The risk is that we will get more earnings misses than usual.”