January 24, 2023

Dow, S&P 500, Nasdaq finish mixed as earnings season picks up steam

Stocks greeted the latest round of corporate earnings with a mixed performance, as the major averages sputtered a bit after a two-day rally.

The Nasdaq Composite (COMP.IND) closed -0.3%, the S&P 500 (SP500) finished -0.1% and the Dow (DJI) ended +0.3%. Earnings-related gains in Travelers (TRV) and Verizon (VZ) boosted the Dow.

The Dow Jones climbed 104.40 points to finish at 33,733.96, marking its third consecutive day of gains. Meanwhile, the Nasdaq slipped 30.14 points to close at 11,334.27 and the S&P 500 ticked down 2.86 points to 4,016.95.

In keeping with the day’s mixed performance, the S&P sectors showed a muted performance across the board. Six of the 11 groups ended the day in the green. However, no market segment moved more than 1% in either direction.

Trading came with an early snag, as the New York Stock Exchange saw an unusual number of halts at the open, including major stocks such as Morgan Stanley (MS), McDonald’s (MCD) and Altria (MO). Most resumed trading shortly after.

Earnings news took most of the spotlight on Tuesday. 3M (MMM) slumped after its quarterly update included a weak sales forecast. Johnson & Johnson (JNJ) was largely unchanged in the wake of its financial figures.

Elsewhere, Travelers (TRV) pushed higher after its revenue beat expectations, with investors shrugging off a bottom line that was hurt by catastrophe losses. Earnings news sent Verizon (VZ) higher as well.

Some key defense names also played into the day’s earnings reports. Lockheed Martin (LMT) and Raytheon Technologies (RTX) both rose following their earnings reports.

“LMT and RTX posted gains as the geopolitical landscape continued to support the defense sector,” analyst Andrew Hecht told Seeking Alpha. “LMT and RTX were heading for bullish key reversals on the daily chart if they close above Monday’s high, which could lead to a continuation rally.”

Looking to bond markets, rates retreated. The 10-year Treasury yield (US10Y) declined 6 basis point to 3.46% and the 2-year yield (US2Y) dipped almost 3 basis points to 4.22%.

Outside of earnings news, Cassava Sciences (SAVA) posted a double-digit percentage slide after announcing clinical trial data for its Alzheimer’s candidate.

tradersville.net is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of tradersville.net are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of tradersville.net websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and tradersville.net, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.