Dow closes more than 350 points higher, S&P 500 caps best January in four years; European markets close lower but gain 6.7% in January; euro zone GDP beats estimates
Stocks rose on Tuesday as strong earnings and encouraging inflation data pushed the S&P 500 to its best January since 2019. The Dow Jones Industrial Average rose 368.95 points, or 1.09%, to 34,086.04. The S&P 500 gained 1.46% to 4,076.60. The Nasdaq Composite added 1.67% to 11,584.55, notching its best January since 2001.
General Motors stock surged more than 7% after the company cruised past analyst estimates on the top and bottom lines for its fourth quarter. The company reported an adjusted $2.12 per share on $43.11 billion in revenue.
Caterpillar shares fell about 3% after Caterpillar reported a 29% earnings decline. The construction machinery and equipment maker said higher manufacturing costs and foreign currency effects weighed on its quarterly results.PayPal’s stock gained more than 2% Tuesday after the payments company shared plans to cut 2,000 jobs, or roughly 7% of its workforce.
The pan-European Stoxx 600 index closed down 0.2%, with the majority of sectors and all major indexes ending in the red. For the month of January, the index saw a gain of 6.72%
Basic resources stocks were the worst performing of the day, closing down 1.2%, while the food and beverage sector ended 0.9% higher. Banking stocks closed up 0.6% after UniCredit and UBS results beat estimates. UniCredit
pledged on Tuesday to return 5.25 billion euros ($5.69 billion) to investors after posting its best profit in over a decade.
The bank said net profit came in at 2.46 billion euros in the three months through December, more than twice an average forecast of 1.10 billion euros ($1.2 bln) from analysts polled by the bank.
UniCredit said it expected to post a net profit in 2023 broadly in line with 2022 including its Russian business, after it had excluded this from its profit goal last year following Russia’s invasion of Ukraine.
Data published in the morning showed the euro zone economy grew 0.1% in the last quarter of 2022. That was better than analyst estimates of a 0.1% contraction; though still represents a slowdown from 0.3% growth in the third quarter.
Source: CNBC, Investing.com