US Markets Rise on Earnings and GDP Growth

US Markets Rise on Earnings and GDP Growth

Key Takeaways

  • U.S. inventory markets posted positive factors on Thursday, Jan. 26, boosted by optimistic GDP information and earnings stories.
  • A positive response to Tesla earnings contributed to a achieve of practically 1.8% for the Nasdaq, whereas the S&P 500 and the Dow additionally moved increased.
  • Shares of IBM fell after it turned the most recent tech firm to announce job cuts.

U.S. equities posted strong positive factors, lifted by company earnings and a report displaying the U.S. financial system grew more than anticipated within the fourth quarter. The Nasdaq was up 200 factors, and the Dow superior for the fifth session in a row.

Tesla (TSLA) was the best-performing inventory within the S&P 500 after the electrical carmaker exceeded fourth quarter earnings and income expectations, reporting sturdy demand for its autos. Seagate Technology (STX) shares jumped as the information storage firm beat analysts’ estimates for each revenue and gross sales. Salesforce (CRM) shares gained on a report that the cloud software program supplier is contemplating including board members because it faces strain from activist investors.

Shares of United Rentals (URI) climbed because the world’s largest tools rental agency had document income and reinstated its stock buyback program. Chevron (CVX) additionally introduced a inventory buyback, together with a dividend improve, and its shares jumped. Las Vegas Sands (LVS) shares moved up after the on line casino operator stated that it could broaden its operations in Macau. Shares of rivals, together with Wynn Resorts (WYNN) and MGM Resorts International (MGM), rose as effectively.

IBM Job Cuts

IBM (IBM) turned the most recent tech firm to say that it’s reducing jobs to scale back prices, and shares dropped. Shares of Southwest Airlines (LUV) misplaced altitude after the airline had an even bigger loss than anticipated final quarter, and it sees additional losses this quarter. Sherwin-Williams (SHW) shares sank because the paint maker warned about revenue and gross sales this yr. Bed Bath & Beyond (BBBY) shares cratered after the struggling retailer indicated that it did not have sufficient money to pay its money owed.

Oil futures added 1% on optimism about rising demand from China. Gold costs fell. The yield on the 10-Year Treasury observe was increased. The U.S. greenback was up versus the euro and yen, but it surely slipped towards the pound. The value of Bitcoin (BTC/USD) fell to only over $23,000, and different main cryptocurrencies additionally misplaced floor.