Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Goodyear Tire & Rubber (NYSE: GT) jumped 10% today after a strong earnings report showed that its net income nearly doubled for the quarter.

So what: Confirming the reports of Ford (NYSE: F) and other automotive companies that have already posted quarterly earnings, Goodyear followed a pattern of great results in North America and miserable ones in Europe. Operating profit in North America rose 37% to $188 million, a record for the company, but sank 85% across the Atlantic to just $19 million. Companywide operating income actually declined about 12%, but other accounting-related expenses dropped significantly, boosting the bottom line. The manufacturer posted earnings of $0.57 a share, easily above analyst estimates of $0.45.

Now what: The North American recovery wasn't the only explanation for the company's improved bottom line. Overall revenue dropped 9% year over year, but increased sales of more expensive tires and the closing of a high-cost plant in Tennessee helped to drive profits. For the full year, the company expects overall tire sales to be down 5% to 7%, but while product sales may be down, margins are improving across the board. Management acknowledged near-term challenges, but at current analyst estimates the stock trades at a P/E of just 5.8 at this year's expected earnings. Now could be a great time to get in on a solid brand that seems to have finally figured out how to control its costs. Any further improvement in the global economy should only send Goodyear shares higher.

Want to know where the rubber meets the road? Stay up to date with all of Goodyear's developments by adding it to My Watchlist.