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U.S. stocks closed higher on Tuesday as investors weighed earnings reports from a batch of major tech companies and cheered positive economic data. Investors are also trying to gauge Fed’s next move as they believe that the central bank may likely go for another interest rate hike at its FOMC meeting on Wednesday. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.08% or 26.83 points to close at 35, 438.07, to record its 12th straight day of gains since February 2017. Notably, 17 components of the 30-stock index ended in positive territory, while 13 closed in the red.
The tech-heavy Nasdaq Composite finished at 14,144.56, gaining 0.61%.
The S&P 500 climbed 0.28%, driven by a rally in energy stocks, to end at 4,567.46. Six out of the 11 sectors of the benchmark index ended in negative territory. The Materials Select Sector SPDR (XLB) gained 1.8%, while the Financials Select Sector SPDR (XLF) slipped 0.7%.
The fear-gauge CBOE Volatility Index (VIX) was up 0.4% to 13.86. A total of 9.75 billion shares were traded on Tuesday, lower than the last 20-session average of 10.32 billion. Advancers outnumbered decliners on the NYSE by a 1.19-to-1 ratio. On the Nasdaq, a 1.21-to-1 ratio favored declining issues. The S&P 500 posted 37 new 52-week highs and no new lows; the Nasdaq Composite recorded 74 new highs and 101 new lows.
Investors Await Fed’s Decision
On Wednesday, The Fed is expected to go for its 11th interest rate hike since March 2022, despite inflation showing signs of cooling. Investors are hoping this will be the final rate hike for a considerable period. Markets are hoping for a quarter percentage point increase, which will take the benchmark borrowing rate to a target range of 5.25%-5.5%, the highest since January 2001.
Stocks rose once again on Wednesday on this optimism and investors will get a clearer picture of the economy’s future as the Fed goes ahead with its meeting. Also, solid economic data that showed consumer confidence jumping once again in June, further gave a boost to investors’ sentiment.
Big Tech Report Earnings
The earnings season is slowly gathering steam and investors are keeping a close watch as big tech companies started reporting their quarterly results.
Microsoft Corporation ((MSFT - Free Report) ) reported quarterly earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.54 per share. The company posted revenues of $56.19 billion, surpassing the Zacks Consensus Estimate by 1.50%.
Alphabet, Inc. ((GOOGL - Free Report) ) came up with earnings of $1.44 per share for the quarter ended June 2023, surpassing the Zacks Consensus Estimate of $1.32 per share. The company posted revenues of $62.07 billion, outpacing the Zacks Consensus Estimate by 3.03%. Alphabet currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments Incorporated ((TXN - Free Report) ) reported second-quarter earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.76 per share. The company posted revenues of $4.53 billion, surpassing the Zacks Consensus Estimate by 4.03%.
Economic Data
The Conference Board reported that the consumer confidence index rose to 117 in July from June’s revised reading of 110.1, to hit its highest level since July 2021.
Case-Shiller Home Prices increased 0.7% month over month in April for the 10-City Composite. Year over year, prices fell 1%. For the 20-City Composite prices dropped 1.7% year over year in April, while it gained 1% month over month.
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Stock Market News for Jul 26, 2023
U.S. stocks closed higher on Tuesday as investors weighed earnings reports from a batch of major tech companies and cheered positive economic data. Investors are also trying to gauge Fed’s next move as they believe that the central bank may likely go for another interest rate hike at its FOMC meeting on Wednesday. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.08% or 26.83 points to close at 35, 438.07, to record its 12th straight day of gains since February 2017. Notably, 17 components of the 30-stock index ended in positive territory, while 13 closed in the red.
The tech-heavy Nasdaq Composite finished at 14,144.56, gaining 0.61%.
The S&P 500 climbed 0.28%, driven by a rally in energy stocks, to end at 4,567.46. Six out of the 11 sectors of the benchmark index ended in negative territory. The Materials Select Sector SPDR (XLB) gained 1.8%, while the Financials Select Sector SPDR (XLF) slipped 0.7%.
The fear-gauge CBOE Volatility Index (VIX) was up 0.4% to 13.86. A total of 9.75 billion shares were traded on Tuesday, lower than the last 20-session average of 10.32 billion. Advancers outnumbered decliners on the NYSE by a 1.19-to-1 ratio. On the Nasdaq, a 1.21-to-1 ratio favored declining issues. The S&P 500 posted 37 new 52-week highs and no new lows; the Nasdaq Composite recorded 74 new highs and 101 new lows.
Investors Await Fed’s Decision
On Wednesday, The Fed is expected to go for its 11th interest rate hike since March 2022, despite inflation showing signs of cooling. Investors are hoping this will be the final rate hike for a considerable period.
Markets are hoping for a quarter percentage point increase, which will take the benchmark borrowing rate to a target range of 5.25%-5.5%, the highest since January 2001.
Stocks rose once again on Wednesday on this optimism and investors will get a clearer picture of the economy’s future as the Fed goes ahead with its meeting. Also, solid economic data that showed consumer confidence jumping once again in June, further gave a boost to investors’ sentiment.
Big Tech Report Earnings
The earnings season is slowly gathering steam and investors are keeping a close watch as big tech companies started reporting their quarterly results.
Microsoft Corporation ((MSFT - Free Report) ) reported quarterly earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.54 per share. The company posted revenues of $56.19 billion, surpassing the Zacks Consensus Estimate by 1.50%.
Alphabet, Inc. ((GOOGL - Free Report) ) came up with earnings of $1.44 per share for the quarter ended June 2023, surpassing the Zacks Consensus Estimate of $1.32 per share. The company posted revenues of $62.07 billion, outpacing the Zacks Consensus Estimate by 3.03%. Alphabet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments Incorporated ((TXN - Free Report) ) reported second-quarter earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.76 per share. The company posted revenues of $4.53 billion, surpassing the Zacks Consensus Estimate by 4.03%.
Economic Data
The Conference Board reported that the consumer confidence index rose to 117 in July from June’s revised reading of 110.1, to hit its highest level since July 2021.
Case-Shiller Home Prices increased 0.7% month over month in April for the 10-City Composite. Year over year, prices fell 1%. For the 20-City Composite prices dropped 1.7% year over year in April, while it gained 1% month over month.