Dow and S&P 500 make up for yesterday’s losses By dpa-AFX

NEW YORK (dpa-AFX) – The New York stock exchanges made up a lot of ground on Tuesday after a weak start to the week. Thanks to a final spurt, the standard value indices even more than made up for their losses from the previous day: while the industrial was 1.09 percent higher at 34,086.04 points, the industrial rose 1.46 percent to 4076.60 points. In the case of technology-heavy stocks, the increase of 1.59 percent to 12,101.93 points was not quite enough to catch up on Monday’s slide.

With the clear gains, the three indices not only defied the latest concerns about the interest rate decision by the American Federal Reserve on Wednesday. They also brought the strong month to an end in line with their status. For January, the Dow was up 2.8 percent. The other two stock market barometers even made gains of over six and almost eleven percent, respectively.

The bank is expected to raise interest rates by 0.25 percentage points, but this will further slow the pace of rate hikes. Statements on future developments will be more important than the rate hike. Investors also had to classify a series of economic data and a flood of company figures on Tuesday.

The construction machinery and commercial vehicle manufacturer, which has been spoiled by success, was hit with value adjustments on the railway segment worth millions Caterpillar (NYSE:) the final quarter. Higher costs and the weaker US dollar also had a negative impact. Adjusted earnings per share fell short of expectations despite an increase, so that the share lost another three and a half percent at the end of the Dow. Before the weekend, however, it had reached a record level.

The second biggest daily loser in the leading index was McDonald’s (NYSE:) with a minus of 1.3 percent. Despite higher prices, the quick-service restaurant chain posted strong growth at the end of the year and earned significantly more than a year ago. However, the profitability was disappointing.

In contrast, General Motors (NYSE:) shares rose 8.4 percent. The carmaker has expressed caution about the current year and only expects profits to increase under good conditions. In 2022, the bottom line was that profits were already falling. However, the figures and outlook were better than analysts had expected. Following in GM’s wake, shares of rivals Ford (NYSE:) and Stellantis (NYSE:) gained 4.8 and 4.1 percent, respectively.

UPS (NYSE:) pleased investors with a price increase of 4.7 percent. After a surprising decline in sales in the fourth quarter, the parcel service is preparing for lower revenues in the new year. The competitor of Fedex (NYSE:) and Deutsche Post DHL is more pessimistic than the average analyst. However, the most recently achieved adjusted earnings per share surprised positively. The rival Fedex even went up 5.3 percent.

Oil giant ExxonMobil (NYSE:) shares are up 2.2 percent after a record year. Disappointment that the concern – unlike competitor Chevron (NYSE:) last week – did not announce any new plans to distribute profits to shareholders for the time being, so it was limited to premarket trading.

The pharmaceutical company Pfizer (NYSE:) ultimately also benefited from the corona-related record year, as the price increase of 1.4 percent showed. However, the tailwind from the pandemic is likely to decrease noticeably in the new year, which is why the company expects sales and profits to fall significantly.

The music streaming market leader Spotify (NYSE:) owed the jump in price from almost 13 percent to a high since the autumn to the mark of 200 million subscribers, which was exceeded for the first time. Experts saw both the number of users and the margin above expectations. The loss, which was higher than in the previous year, did not bother investors.

The euro got some boost from surprisingly resilient economic data out of the euro-zone, climbing to $1.0866 in New York trading. The European Central Bank had set the reference rate at 1.0833 (Monday: 1.0903) dollars. The dollar had thus cost 0.9231 (0.9171) euros.

US Treasuries rose after a weak start to the week: The 10-year bond futures contract () rose 0.33 percent to 114.66 points. In return, the yield on ten-year government bonds fell to 3.50 percent.