US close: Major indices wrap up January with solid gains
By Iain Gilbert
Date: Wednesday 01 Feb 2023
(Sharecast News) - Wall Street stocks closed higher on Tuesday as market participants awaited the outcome of the Federal Reserve's two-day policy meeting and digested a number of earnings reports.
At the close, the Dow Jones Industrial Average was up 1.09% at 34,086.04, while the S&P 500 advanced 1.46% to 4,076.60 and the Nasdaq Composite saw out the session 1.67% firmer at 11,584.55.
The Dow closed 368.95 points higher on Tuesday, reversing losses recorded in the previous session.
All three major indices registered monthly gains in January, with the Nasdaq Composite delivering its best monthly performance since July 2022. However, with several major earnings updates and the Federal Reserve's interest rate decision all set to be revealed before the end of the week, Wall Street's recent rally could still be at risk.
On the macro front, compensation cost growth for US workers slowed at the end of 2020 as, according to the Department of Labor, in seasonally adjusted terms, the quarter-on-quarter rate of increase in total compensation costs slowed from 1.2% in the third quarter to 1.0% in the fourth. Wage and salary growth, meanwhile, slipped from 1.3% to 1.0% and benefits growth dipped from 1.0% to 0.8%.
Elsewhere, the Federal Housing Finance Agency revealed house prices fell 0.1% month-on-month in November, a marked difference from November 2021's 8.2% rise, as higher mortgage rates suppressed demand but low inventories helped maintain relatively flat prices throughout the month.
On another note, the Chicago purchasing managers index fell back to 44.3 points in January from 44.9 in December, according to the Institute for Supply Management, a fifth consecutive month of contraction and short of expectations for a reading of 45.
Finally, the Conference Board's consumer confidence index fell from an upwardly revised 109.0 in December to 107.1 in January, while the expectations index slipped from 83.4 to 77.8.
In the corporate space, drug maker Pfizer reported record-breaking full-year revenues but cautioned that 2023 sales could fall as much as a third, while fast food giant McDonald's revealed US customer numbers had grown in the fourth quarter, leading to earnings and revenues that topped Wall Street estimates.
Spotify fell deeper into the red in the fourth quarter as costs mounted, with quarterly net losses widening to €270.0m from €39.0m a year earlier, while Exxon Mobil posted a mixed set of quarterly results albeit accompanied by hefty cash flows.
Still to earnings, Electronic Arts issued cautious guidance after missing revenue expectations, AMD beat revenue targets with its latest quarterly numbers, Amgen Q4 earnings per share came in line with expectations, Western Digital said quarterly earnings were at the high end of guidance, and Snap posted weak revenues amid continued struggles within its digital advertising unit.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Home Depot Inc. (HD) $324.17 3.16%
Unitedhealth Group Inc. (UNH) $499.19 2.76%
Dow Chemical Co. (DOW) $59.35 2.42%
Goldman Sachs Group Inc. (GS) $365.81 2.34%
3M Co. (MMM) $115.08 2.22%
Microsoft Corp. (MSFT) $247.81 2.10%
Salesforce.Com Inc. (CRM) $167.97 1.95%
Travelers Company Inc. (TRV) $191.05 1.71%
Boeing Co. (BA) $213.00 1.59%
American Express Co. (AXP) $174.93 1.31%
Dow Jones - Fallers
Caterpillar Inc. (CAT) $252.29 -3.52%
McDonald's Corp. (MCD) $267.40 -1.29%
International Business Machines Corporation (CDI) (IBM) $134.73 -0.42%
Chevron Corp. (CVX) $174.02 -0.10%
Dowdupont Inc. (DWDP) $0.00 0.00%
Amgen Inc. (AMGN) $252.40 0.32%
Visa Inc. (V) $230.32 0.48%
JP Morgan Chase & Co. (JPM) $139.96 0.60%
Nike Inc. (NKE) $127.37 0.76%
Walt Disney Co. (DIS) $108.49 0.84%
S&P 500 - Risers
Smith A O Corp. (AOS) $67.70 13.67%
International Paper Co. (IP) $41.82 10.66%
PulteGroup Inc. (PHM) $56.89 9.42%
Pentair plc (PNR) $55.40 9.23%
Dover Corp. (DOV) $151.83 5.95%
Lincoln National Corp. (LNC) $35.43 5.89%
Masco Corp. (MAS) $53.20 5.56%
Humana Inc. (HUM) $511.70 5.52%
Stanley Black & Decker Inc. (SWK) $89.31 5.36%
FedEx Corp. (FDX) $193.86 5.31%
S&P 500 - Fallers
Phillips 66 Common Stock (PSX) $100.35 -5.78%
Corning Inc. (GLW) $34.61 -4.89%
Caterpillar Inc. (CAT) $252.29 -3.52%
Micron Technology Inc. (MU) $60.30 -2.28%
Charter Communications Inc. (CHTR) $384.31 -1.70%
McDonald's Corp. (MCD) $267.40 -1.29%
Expedia Group Inc. (EXPE) $114.30 -1.09%
Hess Corp. (HES) $150.16 -1.06%
Hologic Inc. (HOLX) $81.37 -0.95%
Principal Financial Group Inc (PFG) $92.55 -0.90%
Nasdaq 100 - Risers
Lam Research Corp. (LRCX) $500.10 4.49%
Wynn Resorts Ltd. (WYNN) $103.64 4.31%
Qurate Retail Inc. (QRTEA) $2.58 4.03%
Tesla Inc (TSLA) $173.22 3.94%
CSX Corp. (CSX) $30.92 3.48%
Dish Network Corp. (DISH) $14.39 3.08%
Applied Materials Inc. (AMAT) $111.49 3.04%
Regeneron Pharmaceuticals Inc. (REGN) $758.47 2.99%
Autodesk Inc. (ADSK) $215.16 2.89%
Workday, Inc. (WDAY) $181.43 2.80%
Nasdaq 100 - Fallers
Baidu Inc. (BIDU) $134.68 -2.74%
Micron Technology Inc. (MU) $60.30 -2.28%
Trip.com Group Limited (TCOM) $36.76 -1.84%
Charter Communications Inc. (CHTR) $384.31 -1.70%
Sirius XM Holdings Inc (SIRI) $5.79 -1.36%
Expedia Group Inc. (EXPE) $114.30 -1.09%
NetEase Inc. Ads (NTES) $88.61 -1.08%
Hologic Inc. (HOLX) $81.37 -0.95%
Ross Stores Inc. (ROST) $118.19 -0.68%
Western Digital Corp. (WDC) $43.95 -0.66%
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