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U.S. stocks closed higher on Wednesday, with the Dow finishing at yet another record high while the S&P 500 inched closer to the 5,000 mark, as investors cheered another round of quarterly earnings reports that reflect the underlying strength in the nation’s economy. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 0.4% or 156 points to finish at 38,677.36 points, closing above the previous record high of 38,654.42 set on Feb 2.
The S&P 500 advanced 0.8% or 40.83 points, to close at 4,995.06 points, finishing above the previous record close of 4,958.61 set on Feb 2. Consumer discretionary and tech stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) rose 1.3%, while the Consumer Discretionary Select Sector SPDR (XLY) gained 1.1%. The Materials Select Sector SPDR (XLB) gained 0.8%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 1% or 147.65 points to end at 15,756.64 points.
The fear-gauge CBOE Volatility Index (VIX) was down 1.76% to 12.83. Advancers outnumbered decliners on the NYSE by a 1.2-to-1 ratio. On Nasdaq, a 1.3-to-1 ratio favored declining issues. A total of 11.25 billion shares were traded on Wednesday, lower than the last 20-session average of 11.58 billion.
Solid Earnings Lift Investors’ Sentiment
Investors’ moral was somewhat down last week after the Federal Reserve said that a March rate cut is unlikely as inflation is still above its 2% target. Investors are finally coming to terms that they may need to wait till May for the first rate cut.
On Wednesday, investors set aside the rate cut concerns and shifted focus toward the earnings season that saw another batch of companies reporting robust quarterly results. The earnings season is in full swing and, so far, a large number of companies have reported better-than-expected quarterly results and upbeat guidance.
Corporate earnings have been quite impressive amid a period of sharply rising interest rates. On Wednesday, Uber Technologies, Inc. ((UBER - Free Report) ) reported quarterly earnings that beat analysts’ expectations.
Uber Technologies reported fourth-quarter 2023 earnings of $0.66 per share, which surpassed the Zacks Consensus Estimate of $0.15 per share. Total revenues rose to $9,936 million, outpacing the Zacks Consensus Estimate of $9,746.5 million. Uber Technologies has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Fortinet, Inc. ((FTNT - Free Report) ) reported sold fourth-quarter 2023 results, with both earnings and revenues beating the Zacks Consensus Estimate. Fortinet reported fourth-quarter 2023 non-GAAP earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.43 per share.
Total revenues of $1.415 billion beat the consensus mark of $1.410, driven by strong growth in services revenues.
Meanwhile, shares of New York Community Bancorp, Inc. ((NYCB - Free Report) ) initially fell 13% as investors continued to scrutinize the regional banks’ exposure to the commercial-real-estate sector. However, it closed 6.7% higher after the lender appointed an executive chair Alessandro DiNello who said that total deposits have increased over the past number of weeks.
Economic Data
Not much economic data were released on Wednesday. U.S. trade deficit widened marginally in December to $62.2 billion.
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Stock Market News for Feb 8, 2024
U.S. stocks closed higher on Wednesday, with the Dow finishing at yet another record high while the S&P 500 inched closer to the 5,000 mark, as investors cheered another round of quarterly earnings reports that reflect the underlying strength in the nation’s economy. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 0.4% or 156 points to finish at 38,677.36 points, closing above the previous record high of 38,654.42 set on Feb 2.
The S&P 500 advanced 0.8% or 40.83 points, to close at 4,995.06 points, finishing above the previous record close of 4,958.61 set on Feb 2. Consumer discretionary and tech stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) rose 1.3%, while the Consumer Discretionary Select Sector SPDR (XLY) gained 1.1%. The Materials Select Sector SPDR (XLB) gained 0.8%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 1% or 147.65 points to end at 15,756.64 points.
The fear-gauge CBOE Volatility Index (VIX) was down 1.76% to 12.83. Advancers outnumbered decliners on the NYSE by a 1.2-to-1 ratio. On Nasdaq, a 1.3-to-1 ratio favored declining issues. A total of 11.25 billion shares were traded on Wednesday, lower than the last 20-session average of 11.58 billion.
Solid Earnings Lift Investors’ Sentiment
Investors’ moral was somewhat down last week after the Federal Reserve said that a March rate cut is unlikely as inflation is still above its 2% target. Investors are finally coming to terms that they may need to wait till May for the first rate cut.
On Wednesday, investors set aside the rate cut concerns and shifted focus toward the earnings season that saw another batch of companies reporting robust quarterly results. The earnings season is in full swing and, so far, a large number of companies have reported better-than-expected quarterly results and upbeat guidance.
Corporate earnings have been quite impressive amid a period of sharply rising interest rates. On Wednesday, Uber Technologies, Inc. ((UBER - Free Report) ) reported quarterly earnings that beat analysts’ expectations.
Uber Technologies reported fourth-quarter 2023 earnings of $0.66 per share, which surpassed the Zacks Consensus Estimate of $0.15 per share. Total revenues rose to $9,936 million, outpacing the Zacks Consensus Estimate of $9,746.5 million. Uber Technologies has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Fortinet, Inc. ((FTNT - Free Report) ) reported sold fourth-quarter 2023 results, with both earnings and revenues beating the Zacks Consensus Estimate. Fortinet reported fourth-quarter 2023 non-GAAP earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.43 per share.
Total revenues of $1.415 billion beat the consensus mark of $1.410, driven by strong growth in services revenues.
Meanwhile, shares of New York Community Bancorp, Inc. ((NYCB - Free Report) ) initially fell 13% as investors continued to scrutinize the regional banks’ exposure to the commercial-real-estate sector. However, it closed 6.7% higher after the lender appointed an executive chair Alessandro DiNello who said that total deposits have increased over the past number of weeks.
Economic Data
Not much economic data were released on Wednesday. U.S. trade deficit widened marginally in December to $62.2 billion.