Monday, January 30, 2023
Monday, January 30, 2023

    Dow, Nasdaq hit record highs as rally regains steam

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    However, the lack of details regarding economic policies and Trump’s focus on isolationist policies, including a travel ban on seven mainly Muslim nations, have also made investors cautious.

    With the earnings season at its peak, stock valuations are in focus given the run-up in shares. The S&P 500 is trading at 17.7 times forward 12-month earnings, above the 10-year median of 14.7 times, according to StarMine data.

    Fourth-quarter earnings are estimated to have risen 8.2 percent – the best in nine quarters.

    “We’ve been getting some back and forth between the new administration’s business-friendly policies versus the disruptions economically and politically from the immigration and trade-related issues,” said Jason Pride, director of investment strategy at Glenmede in Philadelphia.

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    “However, at the end of the day, the expansion is continuing, the economy and earnings are growing and that should support equities.”

    A report from the U.S. Commerce Department showed trade deficit fell more than expected in December as exports rose to their highest level in more than 1-1/2 years, outpacing an increase in imports.

    At 11:03 a.m. ET (1603 GMT), the Dow Jones industrial average .DJI was up 80.77 points, or 0.4 percent, at 20,133.19.

    The S&P 500 .SPX was up 5.34 points, or 0.23 percent, at 2,297.9 and the Nasdaq Composite .IXIC was up 22.95 points, or 0.41 percent, at 5,686.51.

    Seven of the 11 major S&P sectors were higher, with technology .SPLRCT index’s 0.58 percent rise and industrials’ .SPLRCI 0.56 percent gain leading the advancers.

    Apple’s (AAPL.O) 1.3 percent rise provided the biggest boost to the S&P and the Nasdaq, while Boeing’s (BA.N) 1.9 percent rise helped lift the Dow.

    Shares of Michael Kors (KORS.N) dropped as much as 15.4 percent to a more than one-year low of $34.92, after the handbag maker cut its full-year revenue forecast.

    Health insurer Centene (CNC.N) was up 5.3 percent at $66.99 following better-than-expected quarterly revenue and profit.

    General Motors (GM.N) slipped 4.5 percent to $35.22 after the automaker said fourth-quarter net income fell partly because of $500 million in foreign exchange losses. The stock was the biggest drag on the S&P.

    Twenty-First Century Fox (FOXA.O) fell 1.9 percent to $30.48 after its quarterly revenue missed Wall Street expectations.

    Advancing issues outnumbered decliners on the NYSE by 1,576 to 1,170. On the Nasdaq, 1,535 issues rose and 1,077 fell.

    The S&P 500 index showed 25 new 52-week highs and two new lows, while the Nasdaq recorded 73 new highs and 25 new lows.

    (Reporting by Yashaswini Swamynathan and Tanya Agrawal in Bengaluru; Editing by Anil D’Silva)

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