US close: Stocks end session higher following Powell speech
Wall Street stocks closed higher on Tuesday as traders digested comments from the Fed's Powell.
At the close, the Dow Jones Industrial Average was up 0.78% at 34,156.69, while the S&P 500 advanced 1.29% to 4,164.00 and the Nasdaq Composite saw out the session 1.90% firmer at 12,113.79.
The Dow closed 265.67 points higher on Tuesday as investors focussed zeroed in on a speech from Federal Reserve chairman Jerome Powell before the Economic Club of Washington.
The head of the US central bank told an audience that the "message" from its last policy meeting was that the "disinflation process" had begun. However, as Jerome Powell continued to speak he appeared to sound a more hawkish note, albeit alongside several more positive sounding remarks from the point of view of risk assets. Stocks, bonds and the US dollar all gyrated as the Federal Reserve chairman spoke with the former two initially gaining ground rapidly and then falling back.
Elsewhere on the macro front, America's shortfall on trade with the rest of the world widened by less than expected at the end of 2022, as import growth picked up. According to the Department of Labor, in seasonally adjusted terms, the country's foreign trade deficit in goods and services widened at a month-on-month pace of 10.5% in December to reach $67.4bn. Economists had pencilled-in a deficit of -$68.5bn.
On another note, consumer credit rose $11.65bn in December, according to the Federal Reserve, following a $27.96bn increase in November and falling well and truly short of market expectations for a print of $25.0bn. On an annual basis, consumer credit was up by 2.9% in December after a 7.1% gain in the prior month.
In the corporate space, Chipotle missed on earnings, revenues and same-store sales, while Spirit Airlines beat on earnings and posted revenues that came in line with expectations.
H&R Block earnings beat expectations as tax season kicks off, Western Union missed earnings estimates despite revenues topping forecast, and Royal Caribbean reported a fourth-quarter loss as it missed on revenues.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Microsoft Corp. (MSFT) $267.56 4.20%
Boeing Co. (BA) $214.76 3.84%
Chevron Corp. (CVX) $174.09 2.62%
Apple Inc. (AAPL) $154.65 1.92%
Travelers Company Inc. (TRV) $189.04 1.62%
Walt Disney Co. (DIS) $111.63 1.60%
Merck & Co. Inc. (MRK) $105.61 1.59%
Salesforce.Com Inc. (CRM) $171.28 1.32%
Walgreens Boots Alliance, Inc. (WBA) $36.74 1.27%
American Express Co. (AXP) $178.70 1.26%
Dow Jones - Fallers
Verizon Communications Inc. (VZ) $40.55 -1.77%
Home Depot Inc. (HD) $325.20 -1.24%
Procter & Gamble Co. (PG) $139.88 -0.98%
Caterpillar Inc. (CAT) $249.66 -0.70%
Nike Inc. (NKE) $125.33 -0.32%
International Business Machines Corporation (CDI) (IBM) $135.84 -0.25%
McDonald's Corp. (MCD) $267.34 -0.22%
Coca-Cola Co. (KO) $60.06 -0.17%
Dowdupont Inc. (DWDP) $0.00 0.00%
Johnson & Johnson (JNJ) $163.40 0.02%
S&P 500 - Risers
Skyworks Solutions Inc. (SWKS) $122.97 12.53%
Cincinnati Financial Corp. (CINF) $127.62 10.70%
Fiserv Inc. (FISV) $115.28 8.35%
Take-Two Interactive Software Inc. (TTWO) $113.85 7.85%
Royal Caribbean Cr (RCL) $74.01 7.12%
Qorvo, Inc. (QRVO) $108.56 6.18%
Activision Blizzard Inc. (ATVI) $75.60 5.62%
Norwegian Cruise Line Holdings Ltd (NCLH) $17.48 5.36%
Nvidia Corp. (NVDA) $221.73 5.14%
Valero Energy Corp. (VLO) $134.52 5.02%
S&P 500 - Fallers
Incyte Corp. (INCY) $80.96 -4.03%
Leggett & Platt Inc. (LEG) $34.81 -3.22%
Macerich Co (MAC) $13.30 -3.20%
Molson Coors Beverage Co. Class B (TAP) $52.30 -2.39%
Carmax Inc. (KMX) $76.17 -2.18%
Westrock Company (WRK) $33.44 -2.14%
Simon Property Group Inc. (SPG) $125.86 -2.13%
CF Industries Holdings Inc. (CF) $84.25 -2.02%
Johnson Controls International plc (JCI) $64.52 -1.98%
Stanley Black & Decker Inc. (SWK) $90.45 -1.91%
Nasdaq 100 - Risers
Skyworks Solutions Inc. (SWKS) $122.97 12.53%
Baidu Inc. (BIDU) $160.22 12.18%
Fiserv Inc. (FISV) $115.28 8.35%
Take-Two Interactive Software Inc. (TTWO) $113.85 7.85%
Activision Blizzard Inc. (ATVI) $75.60 5.62%
Nvidia Corp. (NVDA) $221.73 5.14%
Alphabet Inc. Class A (GOOGL) $107.64 4.61%
Idexx Laboratories Inc. (IDXX) $507.68 4.56%
Alphabet Inc. Class C (GOOG) $108.04 4.42%
Workday, Inc. (WDAY) $191.75 4.37%
Nasdaq 100 - Fallers
Incyte Corp. (INCY) $80.96 -4.03%
Mondelez International Inc. (MDLZ) $65.08 -1.65%
Regeneron Pharmaceuticals Inc. (REGN) $769.94 -1.40%
Qurate Retail Inc. (QRTEA) $2.51 -1.18%
Ross Stores Inc. (ROST) $114.49 -1.05%
O'Reilly Automotive Inc. (ORLY) $801.02 -1.04%
Kraft Heinz Co. (KHC) $39.54 -0.98%
Biomarin Pharmaceutical Inc. (BMRN) $111.31 -0.78%
Dish Network Corp. (DISH) $14.56 -0.68%
Hasbro Inc (HAS) $60.17 -0.59%