Third consecutive ascent on Wall Street

Wall Street closed higher on Tuesday with three consecutive uptrends as investors retaliated after heavy losses in January, the worst month for the Nasdaq and the S&P 500 since March 2020, when the first wave of the pandemic pounded the United States.

The Dow Jones industrial average was down 3.3% for January, the worst month since November 2021. The broader S&P 500 plunged 5.3% on a monthly basis, while the tech Nasdaq plunged 9%. This was the worst January for the technology index since the 2008 global financial crisis.

The January slump came amid a surge in uncertainty as the global investment community struggles to assess how quickly the US Federal Reserve will tighten its policy to control inflation that soared in late 2021 near at a high of 40 years.

Investors expect the Fed to raise interest rates for the first time in March, with some analysts not ruling out a 50 basis point increase from 25 basis points. The president of St. Louis Federal Reserve Chairman James Bullard, however, appeared today to reject the idea of ​​raising interest rates by 50 basis points at the next bank meeting in March. “I do not think a 50 basis point increase in interest rates will really help us right now,” Bullard told Reuters.

Indicators – Statistics

On the board, the Dow Jones industrial average added 273.38 points or 0.78% and closed at 35,405.24 points, while the broader S&P 500 gained 30.99 points or 0.69% at 4,546.54 points. The technology Nasdaq strengthened by 106.12 points or 0.75% and climbed to 14,346.00 points.

Of the 30 stocks that make up the Dow Jones industrial average, 19 closed with a positive sign and 11 with a negative. The biggest gainer was Boeing with gains of $ 8.10 or 4.05% and closed at $ 208.34, followed by Dow with $ 61.81 with gains of 3.48% and Visa with 232, $ 36 with an increase of 2.74%.

On the other hand, the three stocks with the biggest losses were UnitedHealth Group (-0.88%), Johnson & Johnson (-0.82%) and Coca-Cola (-0.74%).

Investors, meanwhile, continue to weigh in on corporate results, with Exxon Mobil announcing better-than-expected earnings for the last quarter today, although earnings lost analysts’ forecasts.

United Parcel Service announced better-than-expected earnings and revenue, while satellite radio company Sirius XM also surpassed market estimates. The movie chain AMC Entertainment managed to exceed analysts’ forecasts for revenue and provided encouraging guidance for the future.

Macro data released today showed that job openings rose in December, in a new indication that the job market remains strong despite the latest wave of pandemics due to the over-transmission of the micron mutation.

In particular, the number of available jobs increased to 10.9 million from the upward revised count of 10.8 jobs in November, according to the US Department of Labor. The figures surpassed analysts’ estimates in a Bloomberg poll.

The resignation rate stood at 2.9%, from a record 3% last month.

At the same time, manufacturing activity fell to a 14-month low in January as the outbreak of the pandemic due to the micron mutation pressures economic activity and shortages in the labor market and supply chains hamper production.

In particular, the Institute for Supply Management (ISM) announced that the manufacturing index fell to 57.6 points from 58.8 points in December. This was the lowest measurement since November 2020.

It is noted that the average estimates of analysts in a Reuters poll put the index at 57.5.

A similar picture was shown by the data announced by the company IHS Markit with the manufacturing PMI falling to a 15-month low of 55.5 points in January from 57.7 points in December, however, surpassing the preliminary measure of January which was 55, 0 units.