A rally in financial stocks lifted the Dow Jones Industrial Average to session highs by the closing bell Tuesday, while investors digested earnings from Big Tech players Microsoft and Google-parent Alphabet.
Microsoft stock fell fractionally in post-market action Tuesday after it reported fiscal second-quarter earnings. Sales rose 18% to $62 billion, while earnings per share of $2.93 rose 23%. Both came in well ahead of estimates. Microsoft stock ended the regular session down slightly.
Meanwhile, Google stock tumbled 4% after hours on its report. The company said sales grew 13% to $86.3 billion while earnings jumped 56% to $1.64 a share. Both came in ahead of views, but the company's core advertising business missed estimates. Shares dipped in the regular session Tuesday.
In the regular session, Dow stocks went from negative to positive and was 0.4% higher at the closing bell, setting yet another record. Helping to boost the index were JPMorgan Chase, Visa, American Expressand Goldman Sachs, all of which climbed more than 1%.
However, the S&P 500 gave up its gains and edged down on the stock market today. Among the 11 sectors, financials and energy gained while technology and real estate fell. The Nasdaq ended just above session lows with a 0.8% loss.
Volume was higher on the New York Stock Exchange and lower on the Nasdaq compared with the same time Monday. Decliners beat advancers by less than 2-to-1 on the Nasdaq and the NYSE.
Small caps on the Russell 2000 continued to see losses and was 0.8% lower at the finish of the trading day. Meanwhile, the Innovator IBD 50 exchange traded fund did slightly better with a fall of 0.5%. And the yield on the benchmark 10-year Treasury note was slightly lower by 3 basis points at 4.06%.
Home Price Indexes, Consumer Confidence
In economic news, the Case Shiller Home Price Index rose 0.1% across 20 U.S. cities, lower than estimates for 0.4% for November, according to Econoday. Also for November, the Federal Housing Finance Agency Home Price Index rose 0.3% and met views.
Also, the Conference Board released consumer confidence numbers for January. The board's reading came in at 114.8, ahead of forecasts for 114.
In employment news, the Labor Department's Job Openings and Labor Turnover Survey showed there were 9 million jobs available for December. Economists expected 8.7 million.
On Wednesday, the Fed's rate decision and Fed Chair Powell's remarks are on watch. According to the CME FedWatch Tool, chances of a 25 basis point cut in March stand at 44.7%. On Wednesday, traders expect the Fed to retain the current target rate of 5.25%-5.5%.
Dow Jones Stocks
Among Dow Jones components, Boeing fell more than 2% further in a downtrend with fourth-quarter earnings expected Wednesday.
And fellow Dow Jones stock Apple lost 2% and slipped below its 50-day moving average in a flat base with a buy point of 199.62. Apple is due to report fiscal first-quarter earnings on Thursday. TF International Securities analyst Ming-Chi Kuo sees iPhone shipments falling by 15% in 2024.
Apple is considered one of the Magnificent Seven stocks.
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Stocks Moving Today
One Magnificent Seven stock outside the Dow Jones index, Meta Platforms gave up slender gains and was down marginally. It is due to report earnings on Thursday.
Elsewhere, OpenText and Atlassian also are expected to report results on Thursday. OpenText stock was down marginally but remains in a buy zone with an entry of 43.25. Atlassian was up fractionally.
Super Micro Computer gave up some of its hefty early gains after earnings late Monday but was up more than 3% for the day. The company also raised its full year outlook.
United Parcel Service plunged more than 8% on a dim 2024 outlook and lower Q4 sales. UPS stock fell below the 50-day line in heavy volume and triggered a sell signal.
Also outside the Dow Jones index, pharmaceutical giant Pfizer sank more than 1% despite a surprise gain in fourth-quarter profits. The company reported its Covid products sales continued to fall. Shares have fallen below the 50-day moving average, which has been a line of resistance since July last year.
In building products, Azek broke out of a flat base with a buy point of 39.04. The stock added 0.7% Tuesday.
And Federal Signal is just above a buy point of 78.54. Shares were up 0.5% Tuesday.
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