Breaking News
Investing Pro 0
Free Webinar - Crude Oil Trading 2023 | Thursday, February 9, 2023 | 01:00PM PST Enroll Now

Stocks, dollar mostly flat on soft data, corporate outlooks

Stock Markets Jan 24, 2023 05:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration
 
JNJ
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US10Y...
-0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-1.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-0.08%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Herbert Lash and Alun John

NEW YORK/LONDON (Reuters) -U.S. stock indexes closed mixed and the dollar slid a bit on Tuesday after companies warned of a tough year ahead along with some profit beats, while data showed U.S. business activity contracted for a troubling seventh straight month in January.

S&P Global (NYSE:SPGI)'s Flash U.S. Composite Output Index last month rose to 46.6, below a reading of 50 where growth begins. Companies reported soft demand amid still high inflation that remains a headwind to customer spending, the report showed.

Real GDP growth is likely to turn negative in the first half of 2023, said Bill Adams, chief economist for Comerica (NYSE:CMA) Bank in Dallas, in a note.

"The economy still might dodge a recession," he wrote. "But the many financial and economic indicators economists use to forecast business-cycle turning points suggest that a recession is more likely near term."

The S&P 500 and Nasdaq closed slightly lower after bellwethers including 3M, Johnson & Johnson (NYSE:JNJ), Verizon (NYSE:VZ) and GE reported mixed results. The Dow rose as Traveler Cos, American Express (NYSE:AXP) and JPMorgan Chase (NYSE:JPM) provided almost half its gains.

After the market closed, Microsoft Corp (NASDAQ:MSFT) posted better-than-expected quarterly profit as a revenue jump at its cloud services unit helped offset a slump in the personal computer market, sending its shares 4% higher in after-hours trade.

"What really is going to define whether the Nasdaq is going to continue to do well this year is how the earnings outlook looks, with Microsoft starting today," said King Lip, chief investment strategist at BakerAvenue Wealth Management in San Francisco.

Up to Monday the Nasdaq had gained almost 10% this year due to declining interest rates and a rebound after significant declines last year, Lip said.

The Dow Jones Industrial Average rose 0.31%, the S&P 500 lost 0.07% and the Nasdaq Composite dropped 0.27%.

Earlier in Europe, S&P Global data for the euro zone reinforced expectations the European Central Bank (ECB) will raise rates by a further 50 basis points on Feb. 2, a day after the Fed is expected to have raised rates by 25 basis points.

Euro zone business activity made a surprise return to growth in January, according to the S&P Global survey - the latest sign that the downturn in the bloc may not be as deep as feared.

The pan-European STOXX 600 index closed down 0.24%.

Overnight, Japan's Nikkei closed at a more than one-month high, recovering all its losses since the Bank of Japan's surprise policy tweak last month. Many Asian markets remained closed for the Lunar New Year.

MSCI's all-country world index gained 0.04% to eke out a fresh five-month closing high.

The euro was flat at $1.0885, holding near a nine-month high supported by expectations the ECB can continue to raise rates to curb inflation, without worrying too much about damaging growth.

Treasury yields were mostly lower in choppy trading as investors looked ahead to next week's Fed policy meeting.

The yield on 10-year Treasury notes fell 6.8 basis points to 3.455%.

Germany's 10-year yield was steady at 2.157%.

Crude oil prices slipped on concerns about a global economic slowdown and an expected build in U.S. oil inventories.

U.S. crude futures fell $1.49 to settle at $80.13 a barrel, while Brent settled down $2.06 at $86.13.

Gold prices pulled back from a nine-month high due to a slight uptick in the dollar and U.S. bond yields, though hopes of slower Fed rate hikes underpinned the market.

U.S. gold futures settled up 0.4% at $1,935.40 an ounce.

Stocks, dollar mostly flat on soft data, corporate outlooks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email