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Stocks rise as earnings continue to roll in

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US stocks edged higher as corporate earnings surged on Tuesday’s open.

S&P 500 (^GSPC) rose nearly 0.2% on Tuesday morning, while the Dow Jones Industrial Average (^ DJI) increased by 0.1%. Technology-focused Nasdaq Composite (^IXIC) added about 0.4%.

The benchmark 10-year US Treasury yield fell to 3.501% from 3.546% on Monday. The Dollar Index fell 0.06% to $102.22.

U.S. Major Stock Averages I fell Monday kicks off a week filled with macro events and major tech earnings.

Oil fell sharply with US benchmark WTI crude dropping more than 1% ahead of Wednesday’s OPEC+ meeting as oil ministers review production levels. OPEC+’s Joint Ministerial Oversight Committee is expected to approve OPEC+’s current oil production policy.

The biggest item on the calendar is the FOMC policy meeting, which starts on Tuesday ahead of the rate hike decision scheduled for Wednesday. quarter point, leading federal funds into the 4.5-4.75% target range. But what happens next is unknown.

“[We] I expect Fed Chairman Powell to be quite hawkish at his press conference,” Michael Feroli, chief U.S. economist at JPMorgan, wrote in a note. “I expect him to highlight two themes: (i) the slowdown will not stop, and (ii) don’t expect rate cuts in 2023.”

Federal Reserve Chairman Jerome Powell attends the Central Bank Symposium at the Grand Hotel in Stockholm, Sweden on January 10, 2023. (Photo by CLAUDIO BRESCIANI/TT News Agency/AFP via Getty Images)

It’s also an important week for the European Central Bank and the Bank of England, where officials are widely expected to raise benchmark interest rates by 50 basis points on Thursday. Such a move would point to a slowdown from last year’s aggressive rate hikes as inflation fell and unemployment remained low.

Earnings season is in full swing

The busiest week of the fourth quarter earnings season has begun, with more than 100 companies representing nearly a third of the S&P 500’s market value reporting results.

Exxon Mobil (XOM) shares fell nearly 2% on Tuesday after the company reported better-than-expected earnings in the fourth quarter. I ran out of income. The oil giant posted adjusted quarterly earnings per share of $3.40, compared with analyst forecasts of $3.29. Fourth-quarter earnings were $95.43 billion for him, below expectations for his $97.3 billion.

McDonald’s (MCD) shares fell after the company reported its fourth-quarter results on Tuesday morning. exceed expectations This is because more customers visit fast food chains as menu prices rise. Earnings for the quarter came in at $5.93 billion, compared to expectations of $5.75 billion, and the company posted his $2.59 adjusted earnings per share, versus analysts’ expectations of $2.44.

General Motors (GM) shares added 7% after the automaker on Tuesday Reported a 15% increase in net income In the fourth quarter, personal consumption is sluggish.

United Parcel Service (UPS) saw lower revenue in the fourth quarter due to lower shipments of merchandise during the holiday season. Quarterly earnings fell 2.7% to $27 billion, below analyst expectations of $28.09 billion. UPS reported adjusted earnings of $3.62 per share for the quarter ended December 31. This exceeded the expected $3.59 per share.

Caterpillar Inc. (Cat) posted a lower-than-expected quarterly profit for the first time since the start of the pandemic. Caterpillar reported Tuesday’s adjusted fourth-quarter earnings of $3.86 per share, while analysts had expected him to be $3.97.

Spotifyspot) reported fourth quarter results. Loss beyond expectations And beat the gross margin. Earnings in the fourth quarter were not achieved. Meanwhile, total monthly active users exceeded expectations, with him at 489 million versus an expected 478 million.

Finally, Pfizer (PFE) plummeting stock prices After the pharmaceutical giant reported Adjusted earnings of $1.14 per share on sales of $24.29 billion. The company said he expects sales to decline in 2023, including a significant drop in sales of COVID vaccines.

In other markets, Carvana shares (CVNA) surged as much as 33% on Monday and rose again in early trading on Tuesday. Carvana is currently part of the list of the 35 most shorted stocks on the Russell 1,000, according to Bespoke Investments data. These stocks are up 18.8% on average this year.

Meanwhile, things rapidly turn into technology after the bell.snap) is Microsoft (MSFTMore) indicates that cloud growth continued to slow in December.

meta platform (meta) is scheduled to report quarterly results on Wednesday, while Amazon (AMZN), Apple (AAPL), alphabet (goog) is gearing up for Thursday.

overseas, The International Monetary Fund said On Monday, it expects the global economy to slow.In the United States, the IMF said economic growth will slow to 1.4% this year as the central bank continues to try to keep inflation under control.

Dani Romero is a reporter at Yahoo Finance. follow her on her twitter @daniromerotv

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