Follow Us on Google News
The Dow Jones Industrial Average closed higher on Tuesday, propelled by energy and financial stocks, despite investor caution ahead of the fresh inflation data scheduled for release on Wednesday. The S&P 500 ended the day flat, while the Nasdaq fell 0.4%. In this article, we will examine the key drivers of the market movement, along with major gainers and losers.
Energy Stocks Lead the Rally
Energy stocks led the rally on Tuesday, with oil prices recording gains despite concerns about a weaker global economy impacting energy demand. The International Monetary Fund (IMF) trimmed its forecast for global real GDP growth to 2.8% for 2023 and 3.0% for 2024. However, APA Corporation (NASDAQ:APA), Devon Energy Corporation (NYSE:DVN), and Halliburton Company (NYSE:HAL) were among the biggest gainers in the energy sector.
Financials Also in the Ascendency
Financial stocks also recorded gains, with bank stocks leading the way ahead of the quarterly earnings season. JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and First Republic Bank (NYSE:FRC) are set to kick off the earnings season on Friday.
CarMax Outperforms Expectations
CarMax (NYSE:KMX) reported fourth-quarter earnings that topped Wall Street estimates, despite weaker sales and lower used-car prices. The news pushed the stock up by more than 9%.
Moderna Falls After Failed Flu Vaccine Study
Moderna (NASDAQ:MRNA) fell by more than 3% after the company reported that its final-stage study of its experimental influenza vaccine failed to meet the criteria for early success. The study failed to enroll enough people infected with the flu.
Big Tech Mostly Under Pressure
Big tech stocks remained mostly under pressure, with Microsoft (NASDAQ:MSFT) down 2%. China and the U.S. are considering regulatory scrutiny on generative artificial intelligence services like ChatGPT. Baidu (NASDAQ:BIDU) and Alibaba Group Holdings Ltd ADR (NYSE:BABA), which are also rolling out their AI generative services, were lower.
Newmont Goldcorp Tables Final Offer for Newcrest Mining
Newmont Goldcorp Corp (NYSE:NEM) tabled an improved and final offer of $19.5 billion for rival gold miner Newcrest Mining (OTC:NCMGF). The improved bid received some support from Newcrest’s shareholders, including top shareholder Allan Gray Australia.
WW International Jumps Nearly 60%
WW International (NASDAQ:WW) jumped nearly 60% after Goldman Sachs upgraded the health and wellness company to a Buy from Neutral rating late Monday, citing the potential of international growth.
In conclusion, the Dow closed higher on Tuesday, driven by energy and financial stocks. Despite investor caution ahead of fresh inflation data due on Wednesday, the market recorded gains in key sectors. Notable gainers included CarMax, APA Corporation, and WW International, while Moderna and big tech stocks remained mostly under pressure