Balance sheet season starts robustly
Dow gains slightly
01/24/2023, 11:18 p.m
At the start of the reporting season, there is no euphoria on the US stock exchanges, but no horror either. After initial technical malaise, trading on the NYSE is briefly interrupted, after which the Dow turns slightly positive. Arms company Raytheon Technologies was among the winners of the day.
A flood of corporate balance sheets is driving investors on Wall Street. the Dow Jones Index the standard values closed on Tuesday up 0.3 percent at 33,734 points. The broader one S&P 500 fell 0.1 percent to 4017 points. The index of the technology exchange Nasdaq lost 0.3 percent to 11,334 jobs.
“Not outstanding, but not worrying either – that’s probably the best way to describe the course of the reporting season in the USA so far,” said Konstantin Oldenburger, market analyst at brokerage house CMC Markets. In the coming days, too, the figures and, above all, the outlook for the companies are likely to have a significant impact on what is happening on the stock exchange.
After the closing bell on Wall Street, the software company Microsoft opened its books. Analysts say tech giants’ earnings could determine whether renewed enthusiasm for growth stocks persists. “In the short term, the answer seems to lie in the balance sheets. In the longer term, we expect a strong positive buying impulse for technology stocks if the US Federal Reserve cuts interest rates this year,” wrote the experts at US investment bank JP Morgan.
Trading on the New York Stock Exchange (NYSE) was briefly interrupted after the market opened for technical reasons. Most stocks have since resumed trading, the NYSE said.
Worries about slowing global economic growth and rising US inventories weighed on oil prices. The North Sea variety Brent fell 2.2 percent to $86.22 per barrel (159 liters). The light US variety STI lost 1.5 percent to $80.13.
Mixed group balance sheets
For the individual values, the focus was on group balance sheets and forecasts. shares of 3M fell 6.2 percent to $115 after the tech giant reported falling earnings last quarter. Johnson&Johnson were flat at $168.31 after surprisingly robust earnings numbers. The pharmaceutical company had announced before the start of the stock market that its business would be affected by the rising corona numbers in China in the first half of 2023.
The shares of the armaments company Raytheon Technologies put on the other hand after surprisingly good quarterly figures by 3.3 percent to $ 99.47. Also the shares of General Electric rose 1.2 percent to $80.70 after the Siemens rival beat analyst estimates for its quarterly earnings.
Google parent stock alphabet gave up two percent. The world’s largest search engine operator has been targeted by the US Department of Justice for its advertising practices. Google has engaged in anti-competitive and unlawful practices to eliminate any threat to its dominance over digital advertising technologies, the ministry cited in its antitrust complaint.