The stock market traded mixed Tuesday morning after two days of strong gains, as investors juggled earnings reports with geopolitical tensions and economic news.
UPS broke out of a base after announcing strong earnings and a bullish outlook. Exxon Mobil soared to a new high after beating earnings estimates.
The Nasdaq, whose two-day rally was the best since April 2002, gained 0.2%. The S&P 500 rose 0.1%. The Dow Jones Industrial Average gained 0.1%. The small cap Russell 2000 Index was up 0.7%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35166.22 | +34.36 | +0.10 |
| S&P 500 | (0S&P5) | 4520.55 | +5.00 | +0.11 |
| Nasdaq | (0NDQC ) | 14281.77 | +41.89 | +0.29 |
| Russell 2000 | 202.85 | +1.61 | +0.80 | |
| IBD 50 | 38.20 | +0.31 | +0.82 | |
Last Update: 11:52 AM ET 2/1/2022 |
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Volume rose on the NYSE, but was about the same on the Nasdaq compared with the same time Monday.
U.S. manufacturing activity slowed in January to the lowest level since September 2020. The ISM Manufacturing index fell to 57.6 in January from 58.8 in December, according to the Institute for Supply Management. Production dropped in part because of disruptions from supply chains as a result of the Covid-19 Omicron variant.
Meanwhile, the conflict in Ukraine continued to mount as Russian troops apparently prepare for an invasion and the Ukrainian currency came under pressure.
UPS Soars On Earnings
UPS soared 15% and broke out of a flat base in heavy trading, becoming the best performing stock in the S&P 500 today. Shares are still in buy range from the 220.34 buy point.
The package delivery company topped fourth-quarter estimates early Tuesday. The company also gave strong 2022 guidance and hiked its quarterly dividend 49% to $1.52 a share. UPS sees 2022 revenue of about $102 billion vs. analyst estimates of about $100 billion.
Exxon Mobil reported fourth-quarter earnings that topped Wall Street estimates before the market opened Tuesday. Exxon earned $2.05 per share on revenue of $85 billion. Revenue was up more than 82%, but just short of consensus views. FactSet analysts projected Exxon earnings soaring to $1.95 per share from just three cents in the year-ago quarter. Revenue was expected to nearly double to $85.1 billion.
Capital spending rose to $5.8 billion, in line with guidance. Cash flow from operations hit $48 million, the highest level since 2012, according to the company. Exxon sees capital spending of $21 billion to $24 billion for 2022, vs. $16.6 billion in 2021. The company initiated a $10 billion share repurchase program.
Exxon shares rose 6% Tuesday morning. Exxon stock broke out of a cup base with a 66.48 entry point on Jan. 5, according to MarketSmith chart analysis. It is now extended and out of buy range.
More Earnings On Tap: Alphabet, AMD, PayPal, Starbucks
In the first of several earnings reports in the chip industry, NXP Semiconductors (NXPI) late Monday beat profit expectations for the fourth quarter. The chipmaker also raised its quarterly dividend 50% to 84.5 cents a share. The stock reversed lower at the 200-day moving average.
After today's close, Alphabet (GOOGL), Advanced Micro Devices (AMD) and PayPal (PYPL) report earnings. Starbucks (SBUX) also announces results.
AT&T stock fell 4.6% on Tuesday after the company said it will spin off its stake in WarnerMedia to shareholders as part of the Discovery (DISCA) merger. The annual dividend of T stock will fall by about 46% to $1.11 per share, the telecom company said.
AT&T had left the door open to a more complex exchange offer, or split-off, of its 71% stake in the combined media company. The new entity will become Warner Brothers Discovery and trade under the ticker symbol WBD.
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