Wall Street

Wall Street in disarray, S&P 500 continues to climb

by Noel Randewich and Ankika Biswas

Jan 23 (Reuters) – New York ended mixed on Tuesday, with the S&P-500 hitting a new closing record for a third straight session as investors braced for mixed quarterly results in anticipation of results from Tesla, Netflix and other companies.

The Dow Jones lost 0.25% to 37,905.45 points.

The broader S&P-500 index added 0.29% to 4,864.59 points.

The Nasdaq Composite advanced by 0.43% to 15,425.94 points.

After a rocky start to the new year, amid optimism about rates dampened by comments from US Federal Reserve officials, Wall Street’s major indexes rebounded on enthusiasm for artificial intelligence. with the start of the results season.

Many investors believe that the results of the “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) will be decisive for the trajectory of Wall Street and, if necessary, will confirm the positive dynamics of recent sessions.

Results will “build to a crescendo” on Wednesday and Thursday before next week gets “even busier,” noted Art Hogan, chief strategist at B. Riley Wealth, referring in particular to Tesla’s results, expected after the close on Wednesday.

“There will be a lot of things to consider over the next few weeks,” he said.

According to LSEG data, analysts on average expect annual revenue growth for S&P-500 companies in the fourth quarter of 2023 of 4.6%, compared to a year-over-year growth of 7.5% in the fourth quarter of 2023. July-September period.

In addition to the results, investors are awaiting this week’s release of a report on personal consumption in the United States, which the Fed considers a leading indicator of inflation, and a preliminary figure for US gross domestic product (GDP) in the fourth quarter.

The U.S. Federal Reserve, which meets next week, is expected to wait until the second quarter to cut interest rates, according to a Reuters poll, which put the potential first cut in June rather than May as previously expected.

Tesla ended the session on the eve of its results with a gain of 0.2%.

Verizon Communications rose 6.7% after forecasting solid annual profit and reporting a quarterly increase in new customers not seen in nearly two years.

Conversely, 3M fell 11% due to a disappointing annual forecast.

(French version by Jean Terzian)

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