US stocks open lower as four-day trading week begins

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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 0.5%. The Nasdaq (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.5%.

All three major indexes closed with weekly gains on Friday, and after a rocky start to 2024, investors will look to financial sector quarterly results and upcoming retail sales to maintain momentum after a rocky start to 2024. I pay attention to statistics.

Goldman Sachs (GS) shares opened higher 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% despite fourth-quarter sales growth. The bank’s profits were affected by a one-time charge of $535 million.

Activity this month fell to its lowest level since May 2020, according to the New York Fed’s Empire State Manufacturing Survey released Tuesday morning.

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. An unexpected slowdown in U.S. wholesale inflation last week raised hopes for a rate cut in March.

After Atlanta Fed President Rafael Bostic and IMF officials warned it was too early to declare victory for inflation, the focus was on comments from Fed Director Chris Waller expected later on Tuesday for further clues. likely to move.

In the corporate sector, Tesla (TSLA) stock price rose after CEO Elon Musk said he wants to develop artificial intelligence and robotics products elsewhere unless he has about 25% voting power in the EV maker. As a result, the stock has recovered from its previous decline.

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Tuesday, January 16, 2024, 8:40 PM 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 recommended stock rating 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 airline’s instructions to airlines on how to inspect planes were inadequate.

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 opened 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) stock 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)