The stock market gave back early gains, posting small losses in the afternoon hours on Tuesday. Investors are cautiously optimistic and are sitting on high cash levels, as earnings begin to flow in. Earnings for major banks have been mixed, with mixed results from industry leaders. Part of the Dow They don’t travel (TRV) suffered heavy losses after the winter storms.
The January Empire State manufacturing index came in at a negative -32.9 vs. -8.1 after reading December -11.2. A low number lights a sign of recession.
The New York Fed surveys manufacturing managers on how busy they are, their views on the future, prices and their contribution to inflation. The Fed and the market are watching the results for signs of inflation.
The S&P 500, Nasdaq and Russell 2000 posted small losses. The Dow Jones Industrial Average fell more than 1%. Volume on the NYSE and Nasdaq was slightly higher compared to the same period on Friday.
Mixed January signs
The major indexes have posted gains to start the year, with small caps leading the way, up more than 7% so far in January. 2023 “Value stocks” are gaining after losing their growth position during the 2022 bear market. Larger bodies may take longer to appear, suggesting continued vigilance but a positive outlook.
The Dow held above its 50-day and 21-day moving averages. The S&P 500 found support on Friday at its 200-day moving average and the Nasdaq remained above its 50-day line.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF ( QQQ ) gained 0.1%.
Crude oil jumped 0.5% above the $80 level, at $80.27 per barrel.
Bulls are looking to run towards the $100 psychological level while keeping an eye on Ukraine. The battle may intensify as we approach the spring months. The Energy Select Sector SPDR ETF (XLE) was unchanged. Natural gas is up 6.5% but still less than $4 million per British thermal unit.
The 10-year Treasury yield added 2 basis points to 3.52%. The probability of a 25-point increase at the February meeting rose to 93.2%. That would take the fed funds rate to a 4.5%-4.75% range, according to the CME Group FedWatch Tool.
The Innovator IBD 50 ETF (FFTY) was unchanged.
European stock markets were mixed, with Germany’s DAX up 0.4% and the Paris CAC 40 up 0.5%. London’s FTSE was down 0.1% in afternoon trade.
Stock Market Movers: Gaming Stock Pops, Insurance Stock Tanks
A component of the Dow Jones Goldman Sachs (GS) fell 7.5% after missing Q4 high and low estimates. The investment bank’s revenues fell 48% compared to the same quarter in 2021, due to lower equity and lower debt income. The small results represent the biggest misses in 10 years. Bank stocks are the Dow and S&P’s biggest losers today.
The bank’s stock is at a double low and is pulling back from a buy point at 378.66. A new base appeared at the base of a cup with a handle after hitting a high of 389.58 in November. Shares found support at the 50-day moving average. GS is in the largest percent decrease since January 18, 2022, when it decreased by 6.97%.
Travelers also weighed on the Dow, as morning losses edged up, down 6.1% after heavy losses from December’s winter storms. Property and casualty insurance has dropped to less than 21 days, 50 days and 200 days, all at the same time.
Morgan Stanley (MS) gained 6.3% on heavy volume after reporting better-than-expected Q4 EPS and sales.
The investment banking and wealth management firm increased its provision for credit losses to $87 million from $5 million last year. The stock was trading on a long choppy base supported by its 50-day line. It leads the S&P 500. The company pays a whopping 3.4% annual dividend to shareholders.
Sports and entertainment stock Roblox (RBLX) jumped 13% on heavy volume after reporting better-than-expected December bookings.
A provider of cloud business solutions CDW (CDW) rose 1.2% and broke out of a long cup-handled base, hitting a buy point of 197.10 on the MarketSmith chart.
Stock Market Movers: Paying Stocks Rise in Development
Tesla ( TSLA ) gained 5.2% even though several analysts cut price targets.
Payment technology provider Global Payments (GPN) rose 3.3% after Morgan Stanley upgraded the stock to overweight and raised its price target to 135 from 124.
A Chinese e-commerce company Alibaba ( BABA ) returned morning gains, down 1.6% after activist Ryan Cohen put the heat on Alibaba to speed up and improve its share buyback program.
Crypto-Related Stocks Rebound With Bitcoin
Bitcoin futures rose 8.7% to $21,250.
Cryptocurrency related exchanges Silvergate Capital (SI) rose more than 9%, despite missing Q4 EPS down 27% year over year. Executives point out that the industry is going through a “transformation.” It reported a loss of $1 billion, above analyst estimates.
Cryptocurrency fintech company Coinbase (COIN) surged 4.1% as bitcoin posted another strong day.
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