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Wall Street ended lower on Tuesday, dragged down by energy stocks due to a fall in oil prices as the U.S. dollar grew stronger after Federal Reserve officials signaled a more cautious approach to interest rate cuts. Market participants witnessed strong earnings reports. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6%, or 231.86 points, to close at 37,361.12. Notably, 20 components of the 30-stock index ended in negative territory, while 10 were in green.
The tech-heavy Nasdaq Composite dropped 0.2% to close at 14,944.35.
The S&P 500 slid 0.4% to end at 4,765.98. Out of the 11 broad sectors of the benchmark, 10 ended in negative territory, while one finished in green. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Industrials Select Sector SPDR (XLI) declined 2.4%, 1.2% and 1%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.3%.
The fear-gauge CBOE Volatility Index (VIX) increased 4.5% to 13.8. A total of 13 billion shares were traded on Tuesday, lower than the last 20-session average of 12.1 billion. The S&P 500 posted 23 new 52-week highs and two new lows, and the Nasdaq Composite recorded 63 new highs and 182 new lows.
Oil Prices Drop on Strong Dollar
Oil prices saw a decline due to the strengthening of the U.S. dollar combined with statements from a Federal Reserve official suggesting a cautious approach to cutting interest rates. Typically, when the U.S. dollar gains strength, oil prices tend to decrease as they have an inverse relationship. In this instance, after remarks from Federal Reserve Governor Christopher Waller indicated that the central bank may not aggressively pursue rate cuts as initially anticipated, the U.S. dollar index rose by 1%.
When the U.S. dollar gains strength, it becomes costlier for buyers using currencies to purchase oil. This can result in reduced demand and subsequently lead to a decline in oil prices.
Strong Q4 Earnings From The Finance Sector
The Goldman Sachs Group, Inc. (GS - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of $5.48 per share, which surpassed the Zacks Consensus Estimate of $3.47 per share. The bank retailer generated total revenues of $11.32 billion, outpacing the Zacks Consensus Estimate of $10.71 billion.
The PNC Financial Services Group, Inc. (PNC - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of $3.16 per share, which surpassed the Zacks Consensus Estimate of $2.99 per share. The financial services retailer generated total revenues of $5.36 billion, outpacing the Zacks Consensus Estimate of $5.28 billion. The stock price of both Goldman Sachs and PNC Financial Services rose by 0.7%. PNC Financial Services Group, Inc. (PNC - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The New York Fed’s Empire State business conditions index, which is a gauge of manufacturing activity in the state, climbed 29 points in January to a negative 43.7.
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Stock Market News for Jan 17, 2024
Market News
Wall Street ended lower on Tuesday, dragged down by energy stocks due to a fall in oil prices as the U.S. dollar grew stronger after Federal Reserve officials signaled a more cautious approach to interest rate cuts. Market participants witnessed strong earnings reports. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6%, or 231.86 points, to close at 37,361.12. Notably, 20 components of the 30-stock index ended in negative territory, while 10 were in green.
The tech-heavy Nasdaq Composite dropped 0.2% to close at 14,944.35.
The S&P 500 slid 0.4% to end at 4,765.98. Out of the 11 broad sectors of the benchmark, 10 ended in negative territory, while one finished in green. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Industrials Select Sector SPDR (XLI) declined 2.4%, 1.2% and 1%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.3%.
The fear-gauge CBOE Volatility Index (VIX) increased 4.5% to 13.8. A total of 13 billion shares were traded on Tuesday, lower than the last 20-session average of 12.1 billion. The S&P 500 posted 23 new 52-week highs and two new lows, and the Nasdaq Composite recorded 63 new highs and 182 new lows.
Oil Prices Drop on Strong Dollar
Oil prices saw a decline due to the strengthening of the U.S. dollar combined with statements from a Federal Reserve official suggesting a cautious approach to cutting interest rates. Typically, when the U.S. dollar gains strength, oil prices tend to decrease as they have an inverse relationship. In this instance, after remarks from Federal Reserve Governor Christopher Waller indicated that the central bank may not aggressively pursue rate cuts as initially anticipated, the U.S. dollar index rose by 1%.
When the U.S. dollar gains strength, it becomes costlier for buyers using currencies to purchase oil. This can result in reduced demand and subsequently lead to a decline in oil prices.
Strong Q4 Earnings From The Finance Sector
The Goldman Sachs Group, Inc. (GS - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of $5.48 per share, which surpassed the Zacks Consensus Estimate of $3.47 per share. The bank retailer generated total revenues of $11.32 billion, outpacing the Zacks Consensus Estimate of $10.71 billion.
The PNC Financial Services Group, Inc. (PNC - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of $3.16 per share, which surpassed the Zacks Consensus Estimate of $2.99 per share. The financial services retailer generated total revenues of $5.36 billion, outpacing the Zacks Consensus Estimate of $5.28 billion.
The stock price of both Goldman Sachs and PNC Financial Services rose by 0.7%. PNC Financial Services Group, Inc. (PNC - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The New York Fed’s Empire State business conditions index, which is a gauge of manufacturing activity in the state, climbed 29 points in January to a negative 43.7.