US stocks fall at the start of 4-day trading week

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U.S. stocks fell on Tuesday, but investors remained focused on developments in interest rates after a lackluster start to the earnings season that kicked off with results from big banks.

The Dow Jones Industrial Average (^DJI) fell 0.4% and the S&P 500 (^GSPC) fell 0.2%. The tech-heavy Nasdaq (^IXIC) fell 0.3% despite swinging into green territory several times during trading as semiconductor companies Nvidia (NVDA) and AMD (AMD) rose.

Goldman Sachs (GS) stock rose on Tuesday after the bank announced fourth-quarter profits rose 51% from a year earlier. Goldman Sachs announced a 24% decline in full-year net income for 2023 to $8.52 billion due to an industry-wide trading slowdown.

Morgan Stanley (MS) shares fell more than 3% after the company posted a quarterly profit on the back of a $535 million one-time charge. The bank’s fourth-quarter earnings beat Wall Street expectations.

Investors are anxiously awaiting Wednesday’s retail sales report and tracking any announcements that could influence policy thinking based on the Federal Reserve’s data. Last week, U.S. wholesale inflation unexpectedly cooled, raising hopes for a rate cut in March.

Federal Reserve President Chris Waller said Tuesday that the central bank could cut interest rates this year unless inflation picks up or remains high. However, he cautioned that the timing and timing of any rate cuts would depend on future data.

“I don’t see any reason to act or cut back as quickly as we have in the past,” Waller said in a speech at the Brookings Institution in Washington. His comments come after Atlanta Fed President Rafael Bostic and IMF officials recently warned that it is too early to declare victory on inflation.

In the corporate sector, Tesla (TSLA) stock rose on Tuesday, with artificial intelligence and robotics products elsewhere on the market unless CEO Elon Musk has about 25% voting power in the EV maker. The company has recovered from its previous decline in response to the company’s announcement that it wants to develop a new technology.

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Tuesday, January 16, 2024, 10:49pm (GMT+5:30)

Stocks plunge, Boeing falls 7%

U.S. stocks fell slightly in mid-trading Tuesday, with energy and industrial stocks leading the decline.

The Dow Jones Industrial Average (^DJI) fell by ~0.6%, and the S&P 500 (^GSPC) fell by 0.4%. The tech-heavy Nasdaq (^IXIC) fell 0.3%, despite briefly moving into the green zone early in the session.

The Energy Sector ETF (XLE) led the broader market decline, falling 1.5%. The Industrial Select ETF (XLI) also fell more than 1%.

Boeing (BA) shares fell more than 7% to an intraday low following a Wells Fargo analyst downgrade, amid increased scrutiny of the major company’s 737-9 Max aircraft.

Semiconductor stocks rose, with Nvidia (NVDA) up more than 3%. AMD (AMD) also rose more than 9% to a 52-week high following a series of analyst upgrades.

Meanwhile, the 10-year Treasury yield (^TNX) rose and remained above 4% following cautious remarks from Federal Reserve Governor Christopher Waller.

U.S. stocks as of 12:15pm ET on Tuesday, January 16, 2024
Tuesday, January 16, 2024, 10:02 PM (GMT+5:30)

Fed likely to cut rates this year, but in no hurry: Waller

Federal Reserve President Christopher Waller said Tuesday that the central bank could cut interest rates this year unless inflation recovers and remains high.

As Yahoo Finance’s Jennifer Schonberger reports, Waller cautioned that the timing and actual numbers of the decline depend on data.

“Economic activity and the labor market are in good shape, and inflation is slowly coming down to 2%, so we don’t want to act as quickly or cut interest rates as much as we have in the past,” Waller said in a speech at the Brookings Institution in Washington. There is no reason to do so.”

Please see here for the detail.
Tuesday, January 16, 2024, 9:55 PM GMT+5:30

Lawmakers reach bipartisan tax deal to expand child tax credit

The bipartisan duo announced a tax deal Tuesday that combines an expansion of the child tax credit with provisions long sought by the business community.

The bill, authored by Senate Finance Committee Chairman Ron Wyden (D-Ore.) and House Ways and Means Committee Chairman Jason Smith (R-Missouri), “2024 Taxes on American Families and Workers.” It is called “mitigation method”.

The proposed bill would make more of the child tax credit available to large families, while also phasing in a refundable portion of the current $2,000 tax credit to the poorest families. It is something.

As Yahoo Finance’s Ben Wershkul reports, the bill The prospects for enactment face uncertainty. But if it becomes law by the end of this month, its impact could be felt in the upcoming tax filing season.

Please see here for the detail.
Tuesday, January 16, 2024, 9:09pm (GMT+5:30)

Nasdaq turns positive as Nvidia stock rises

The Nasdaq Composite Index (^IXIC) was flat on Tuesday morning, with gains in tech stocks and consumer discretionary stocks.

The tech-heavy index opened 0.5% lower, but erased its losses and turned positive in the first hour of trading. Semiconductor giant Nvidia (NVDA) led the recovery, with its stock rising more than 2%.

AMD stock (AMD) also rose more than 7%, hitting a 52-week high.

Tesla (TSLA) stock turned positive during trading, rising about 1.5% by 10:30 a.m. ET.
Tuesday, January 16, 2024, 8:40pm (GMT+5:30)

Boeing falls 5% due to analyst downgrade

Boeing (BA) stock fell more than 5% following a downgrade by Wells Fargo analysts, making it the biggest decliner on the Dow Jones Industrial Average (^DJI) in morning trading.

The company lowered its stock recommendation from “buy” to “hold” and lowered its price target from $280 to $225.

The airline’s 737-9 Max planes have come under increasing scrutiny by the Federal Aviation Administration (FAA) after a door plug flew off an Alaska Airlines jet earlier this month.

The FAA said last week that the company had insufficiently instructed airlines on how to inspect planes.

On Tuesday, BofA analysts maintained a “buy” rating on the stock, but lowered their price target from $275 to $255 per share.

The analysts said: “Despite recent issues, we believe BA is making steady, if not slow, progress in addressing some of the internal deficiencies that led to its current situation.” Stated.
Tuesday, January 16, 2024, 8:04 PM (GMT+5:30)

Stock prices start lower as shortened business week begins

Stocks started lower Tuesday on higher bank earnings.

The Dow Jones Industrial Average (^DJI) fell 0.4% and the S&P 500 (^GSPC) fell 0.5%. The Nasdaq 100 (^NDX), which has a high proportion of tech stocks, led the decline, dropping about 0.2%.

Goldman Sachs (GS)’s stock price fluctuated despite a sharp increase in profits in the fourth quarter. Morgan Stanley (MS) shares fell more than 3% after its fourth-quarter profit was hit by a one-time charge.

Tesla (TSLA) stock fell more than 2% on Tuesday after CEO Elon Musk said he wants about 25% voting control in the electric car giant.

“I am uncomfortable with building Tesla into a leader in AI and robotics without having up to 25% voting control,” Musk wrote in the article. ×post on monday.

The New York Fed’s Empire State Manufacturing Survey released Tuesday morning showed activity this month fell to its lowest level since May 2020.
Tuesday, January 16, 2024, 7:21pm GMT+5:30

Manufacturing activity plummets in New York

The holiday-shortened business week begins with some frightening news about New York’s manufacturing industry.

The New York Fed’s Empire State Manufacturing Survey released Tuesday morning showed activity this month fell to its lowest level since May 2020.

The index, which measures the difference between respondents reporting high or low activity levels, fell to -43.7 in January. Economists had expected the index to fall into negative single digits after reaching -10.5 in December.

“While the survey’s composite index has fluctuated in recent months, this sharp drop reflects a difficult January for New York’s manufacturing industry, as employment and hours also contracted,” said Richard Deitz, economic research advisor at the New York Fed. This suggests that it was the moon.”

Although not typically a market-moving report, and sampled only from a few regions of the United States, the New York Fed’s reading shows that key economic indicators are showing signs of strength in the U.S. economy as 2024 begins. That would add to concerns among some investors that the numbers are being overstated.

Manufacturing activity in New York plummeted in January. (Source: New York Fed)