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Stock Market News for Jan 25, 2023

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Wall Street closed mixed on Tuesday as investors digested the latest batch of corporate earnings reports and gauged the state of the economy. The Dow ended in positive territory, while the S&P 500 and Nasdaq closed lower.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.3% or 104.40 points to end at 33,733.96 points.

The S&P 500 slid 0.1% or 2.86 points to close at 4,016.95 points. Healthcare stocks were the worst performers, while consumer staples and industrial stocks were the biggest gainers.

The Health Care Select Sector SPDR (XLV) lost 0.7%. The Consumer Staples Select Sector SPDR (XLP) and Industrials Select Sector SPDR (XLI) each gained 0.4%. Five of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq lost 0.3% or 30.14 points to finish at 11,334.27 points.

The fear-gauge CBOE Volatility Index (VIX) was down 3.08% to 19.20. Advancers outnumbered decliners on the NYSE by a 1.01-to-1 ratio. On Nasdaq, a 1.17-to-1 ratio favored declining issues. A total of 10.58 billion shares were traded on Tuesday, lower than the last 20-session average of 10.61 billion.

Investors Digest Mixed Earnings Reports

Markets closed higher on Monday, with all three major indexes ending in positive territory although it hasn’t been a great start to the earnings season. However, markets failed to build on the two consecutive days of gains on Tuesday. As the earnings season gathered steam on Tuesday, investors digested a batch of mixed quarterly reports.

Shares of 3M Company (MMM - Free Report) fell 6.2% after the company reported an earnings miss. The company reported fourth-quarter 2022 adjusted earnings of $2.28 per share, missing the Zacks Consensus Estimate of $2.34 per share.

Johnson & Johnson’s (JNJ - Free Report) shares ended the session flat after the company reported earnings beat but missed revenue estimates. The company reported quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.22 per share. Johnson & Johnson has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The market gains over the past few sessions came despite a shaky start to the earnings season and more signs that the economy is slowing. Investors believe that the Fed will consider these findings when it meets in February for its next policy meeting where it is expected to go for another round of rate hikes.
Also, a technical glitch following the opening bell halted shares of a dozen companies listed on the NYSE briefly.

Economic Data

In economic data released on Tuesday, the S&P manufacturing PMI rose to 46.7 in January from 46.2 in the month earlier to a 31-month low. The services PMI climbed to 46.6 in January from 44.7 in December.

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