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5 things to know before the stock market opens Tuesday, January 31

by News Desk
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Traders at work on the trading floor of the New York Stock Exchange (NYSE) in New York City, January 26, 2023.

Andrew Kelly | Reuters

Here are the most important news items investors need to start their trading day:

1. A Solid Month Ends

US stocks coming soon Ending a Strong January Despite lingering concerns about the Federal Reserve’s rate hike strategy to stem recession and inflation. Corporate earnings aren’t all that hot either. But there are also growing expectations that the economy is headed for a soft landing at home and abroad (more on that below). Meanwhile, the Fed is expected to start its two-day policy meeting on Tuesday and raise its benchmark interest rate by a quarter of a percentage point on Wednesday. McDonald’s and General Motors reported before Bell, and Advanced Micro Devices after Bell, and the earnings hype continues.

2. Better global outlook

The exterior and logo of the International Monetary Fund (IMF) building in Washington DC on March 27, 2020.

Olivier D’Liery | Afp | Getty Images

Some good global economic news greeted US markets on Tuesday morning.Overnight, International Monetary Fund boosted growth forecasts for the year to 2.9% from the previous outlook of 2.7%. Pierre-Olivier Grinchat, Research Director at the IMF, said: “Economic growth in the third quarter of last year was surprising, driven by a strong labor market, strong household and business investment, and a better-than-expected adaptation to the European energy crisis. It has proven to be resilient,” he said.Indeed, the eurozone helped ease fears of a global recession by posting Tuesday morning Unexpected growth in Q4Despite the good news, inflation and Russia’s war in Ukraine still pose risks to the global economy.

3. GM’s Big Beat

Mary Barra, NYSE CEO and GM, Nov. 17, 2022.

Source: New York Stock Exchange

general motors simply Exceeded Wall Street expectations About quarterly results. Earnings per share were $2.12, versus analysts’ expectations of $1.69. Revenue also exceeded expectations at $43.11 billion. The earnings report is the latest sign that the auto sector is beginning to normalize again after dealing with high demand amid a low interest rate environment and disruptions in his supply chain caused by the Covid pandemic. Still, it wasn’t all good news for GM. Because we reported tighter margins.

4. Customers Support McDonald’s

Mac rib sandwich.

David Paul Morris | Getty Images News | Getty Images

McDonald’slike Walmart, thrive in tough economic timesFast food giants have raised prices to keep pace with inflation, but drive-thru and counters are still able to attract masses as people devour discounted meals and deals from full-service restaurants. McDonald’s on Tuesday posted earnings and sales that beat Wall Street estimates, with same-store sales up double-digits in the U.S. and internationally, helped by McRib’s “Farewell Tour,” but not surprisingly. am.

5. US Ends Covid Health Emergency

A woman receives a moderna coronavirus disease (COVID-19) booster vaccine at an immunization center in Antwerp, Belgium, February 1, 2022.

Johanna Gelon | Reuters

Biden Administration Ends Public Health Covid emergency designation in May. This means the US will start treating the virus as a seasonal health risk such as the flu. The emergency declaration, first implemented by the Trump administration, gave hospitals more flexibility to deal with the surge in Covid hospitalizations and allowed people to stay on Medicaid longer. Covid has killed more than a million people in America since 2020, but deaths and hospitalizations have fallen dramatically as vaccines have become more available and treatments have improved.

– CNBC’s Samantha Subin, Silvia Amaro, Michael Weiland, Amelia Lucas and Spencer Kimball contributed to this report.

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