Shares of industrial and transportation companies rose as bellwethers like GE Vernova report strong order backlogs of equipment used to generate power for AI data centers.
GE Vernova raised its full-year revenue guidance and lifted its margin expectations after a second-quarter surge in orders boosted its backlog. The energy company, formed from the breakup of General Electric now expects $45.5 billion to $46.5 billion in revenue for the year, up $1 billion from last year. It also raises its expectations for free cash flow and an adjusted earnings metric margin. Chief Executive Scott Strazik says the company is sporting a $176 billion backlog and seeing continued revenue growth and margin expansion, thanks to strong global demand.
Alaska Air Group swung to a loss in the second quarter as it struggled with rising fuel costs, but said it expects a stronger performance in the current third quarter. The Seattle-based airline on Tuesday reported a loss of $76 million, or 68 cents a share, compared with a profit of $172 million, or $1.42 a share, a year earlier.
Finnish elevator and escalator maker Kone backed full-year guidance despite booking hefty costs related to its planned acquisition of German rival TK Elevator as well as restructuring measures.
