January 25, 2023

Market Activity Mixed Ahead of Busy Week of Earnings Reports

On Tuesday, the Dow Jones Industrial Average increased by 0.3%, while the S&P 500 decreased by 0.1%.[0] The Nasdaq composite, which is heavily reliant on technology, ended 0.3% lower, thus ending a two-[1] The industrial conglomerate 3M saw a 6.2% drop after they reported their fourth quarter earnings of $2.28 per share on $8.1 billion in revenue – a 6.9% and 6.0% decrease respectively when compared to the year-over-year numbers.[2] The firm asserted that their adjusted sales growth is predicted to be between a 2-6% decrease this year, and they will be cutting 2,500 manufacturing employees due to diminishing demand.[2] The U.S. 10-Year Treasury yield has dropped to 3.46%, causing a decrease in bond yields.[3] This is a drop of over five basis points from the closing price prior.[3]

Wednesday saw oil prices remain relatively unchanged, hovering close to their recent highs.[1] West Texas Intermediate futures were trading at a little over $80 per barrel.[6] The Energy Information Administration will release their weekly petroleum stockpile data at 10:30 a.m.[1] [7]

Analysts predict that Tesla’s earnings per share will increase to $1.13, while revenue is projected to be $24.66 billion, according to IBD figures.[8] Microsoft’s December quarter earnings report showed a solid performance, although their profit forecast was below expectations. This contributed to a more subdued outlook for industrial, tech, and consumer sectors on Tuesday. Going forward, the bullish sentiment is likely to be reined in as more earnings reports come in before and after the bell.[8]

The Stoxx 600 in Europe dropped by 0.28% in foreign markets as the December quarter earnings reports and economic data were mixed. Business sentiment in Germany, the largest economy in the region, showed an increase in January.[9]

CME Group (opens in new tab) reports that the market is expecting a 0.25% increase in the interest rate at the Fed’s upcoming meeting, the slightest increase since March of 2022.[2]

0. “Stock market today: Dow rises as earnings season heats up; Microsoft Q2 EPS Beats By Investing.com” Investing.com, 24 Jan. 2023, https://www.investing.com/news/stock-market-news/stock-market-today-dow-rises-as-earnings-season-heats-up-microsoft-q2-eps-beats-2987187

1. “Dow Jones Dives 325 Points As Boeing, Microsoft Report Earnings; Tesla Sells Off Ahead Of Earnings” Investor’s Business Daily, 25 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fall-200-points-as-boeing-microsoft-drop-on-earnings-tesla-earnings-due/

2. “Stock Market Today: Dow Gains After Busy Day of Blue-Chip Earnings” Kiplinger’s Personal Finance, 24 Jan. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-012423-dow-gains-after-busy-day-of-blue-chip-earnings

3. “Stock Market News Today: Stocks Struggled to Find Direction in Choppy Trading” TipRanks, 24 Jan. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-dip-as-earnings-take-the-center-stage

4. “Stocks Rise as Investors Bet on Slowing Rates, Await Earnings” The Wall Street Journal, 23 Jan. 2023, https://www.wsj.com/articles/global-stocks-markets-dow-update-01-23-2023-11674477017

5. “U.S. Stocks Poised for Lower Open” Barron’s, 22 Jan. 2023, https://www.barrons.com/articles/u-s-stocks-poised-for-lower-open-51674430859

6. “Dow Jones Falls 200 Points With 8 Key Earnings Movers; Microsoft Earnings Due” Investor’s Business Daily, 24 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fall-as-6-key-earnings-movers-report-microsoft-earnings-due/

7. “Stock market news live updates: Tech leads stocks higher as big earnings week begins” Yahoo News, 23 Jan. 2023, https://news.yahoo.com/stock-market-news-live-updates-january-23-2023-111002698.html

8. “Stocks Move Lower, Microsoft, Tesla, Boeing, Fox In Focus – Five Things To Know” TheStreet, 25 Jan. 2023, https://www.thestreet.com/markets/stocks-move-lower-microsoft-tesla-boeing-fox-5-things-to-know

9. “Stock Market Today: Stocks Slide As Earnings Underwhelm, Microsoft Slumps; Tesla Up Next” Henry Herald, 25 Jan. 2023, https://www.henryherald.com/arena/stock-market-today-stocks-slide-as-earnings-underwhelm-microsoft-slumps-tesla-up-next/article_89572800-4787-5bec-85f2-74999da7e457.html

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