1/26/24

The major averages closed mixed following solid economic data and more earnings reports.

The Dow Jones Industrial Average closed up 60 points or 0.16% thanks to American Express. The S&P 500 fell 3 points while the Nasdaq Composite dropped 55 points or 0.36%.  

On the economic front, the December core personal consumption expenditures price index came in line with economists' forecasts month over month, but was slightly lower than anticipated on an annualized basis. This news followed yesterday's higher-than-expected economic growth in the fourth quarter.

The 10-year Treasury yield held steady at 4.14%.  According to the CME FedWatch Tool, the markets are pricing in a 46% likelihood the central bank will lower rates by a quarter percentage in March.

On the earnings front, chipmaker Intel fell 11%, dragging down the chip and tech sector on disappointing fiscal first-quarter guidance. Semiconductor equipment maker, KLA Corp also fell, dropping 6% after posting light guidancel.

To the upside, American Express surged 7% following strong guidance for the first quarter. Capital One was higher as well on earnings while rival, Visa fell 1 percent after experiencing slower U.S. volumes.

Other companies reporting earnings this morning include Colgate, Booz Allen, T-Mobil, L3Harris, Western Digital and Levi Strauss.  Booz Allen jumped 13% as net income for the quarter rose sharply.

Friday's losses ended a six-day winning streak for the S&P 500 and Nasdaq. For the week, the blue-chip Dow gained approximately 0.7%. The S&P 500 advanced around 1.1%, while the Nasdaq Composite climbed about 0.9%.