Dow closes 100 points higher for third consecutive day of gains; European markets close lower even as flash PMI data shows return to growth for euro zone
The Dow Jones Industrial Average finished higher Tuesday as investors parsed through the latest batch of corporate earnings reports for insight into the state of the economy.
The Dow gained 104.40 points, or 0.31%, to close at 33,733.96. The S&P 500 dipped 0.07% to settle at 4,016.95, while the Nasdaq Composite dropped 0.27% to end at 11,334.27.
Earnings season continued Tuesday with mixed results. 3M dropped 6.2% on disappointing guidance, while Union Pacific dipped 3.3% after the railroad company’s results fell short of analysts’ estimates. Microsoft Corporation (NASDAQ:MSFT), which ended the day just below the flatline, surged after its quarterly earnings topped Wall Street estimates driven by growth in its cloud business.
Advanced Micro Devices — Shares slid 3.2% after Bernstein downgraded the semiconductor maker to market perform from outperform. The firm said the personal computer market and new parts markets were growing increasingly unfavorable for the company.
3M — Shares of the industrial conglomerate slid more than 5% to hit a new 52-week low after the company said it would cut 2,500 manufacturing jobs amid a demand slowdown.
Raytheon Technologies – Shares of the aerospace company added 2% after Raytheon posted its fourth quarter. Raytheon posted adjusted earnings per share of $1.27, compared with analysts’ estimates of $1.24 per share, according to Refinitiv.
The pan-European Stoxx 600 index closed 0.2% lower, with health care and oil and gas stocks shedding 1.3% to lead losses while travel and leisure stocks added 1.4%.
PMIs track business activity in the services and manufacturing sectors, and Tuesday’s figures showed the euro zone returning to modest growth in December, boosting hopes that the 20-member currency bloc may avoid recession.
raised its sales expectations for 2025, according to Chief Executive Armin Papperger. The CEO told Stern magazine he expects sales to grow to between 11 billion euros ($11.9 billion) and 12 billion euros in 2025, up from between 10 billion euros to 11 billion euros in November.
Source: CNBC, Investing.com