U.S. Market Averages Inch Higher as Investors Digest Another Batch of Earnings

Barry Adams
07 Feb, 2024
New York City

Market indexes were on hold in Wednesday's trading, and investors reviewed another batch of corporate earnings.

The S&P 500 index and the Nasdaq Composite edge slightly higher following lackluster trading in the previous session.

Investors have bid up stocks, and market indexes have extended their rally to the fourth month in a row following a string of positive earnings and the expectations of interest rate cuts.

However, those expectations were dented after Fed Chairman Jerome Powell confirmed that the rate cut in March is not likely, and stronger-than-estimated job gains in March also suggested that the U.S. economy is resilient even after eleven interest rate increases over the last two years.

Alibaba Group, Uber, Chipotle Mexican Grill, Ford, Pandora, and Yum Brands were in focus after the release of financial results.

New York Community Bank soared 10.6% to $4.65 and traded volatile after Moody's Investors Service lowered the regional bank's debt rating two notches to junk level. 

 

U.S. indexes and yields

The S&P 500 index increased 0.1% to 4,981.12, and the Nasdaq Composite added 0.2% to 15,598.06.

The yield on 2-year Treasury notes decreased to 4.42%, 10-year Treasury notes rose to 4.13%, and 30-year Treasury bonds edged up to 4.33%.

WTI crude oil increased $0.63 to $73.95 a barrel, and natural gas prices increased 0.1 cent to $2.01 a thermal unit.

Gold decreased by $3.22 to $2,032.55 an ounce and extended the previous week's gains after the U.S. dollar rebounded in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.09.

 

U.S. Stock Movers

Alibaba Group decreased 0.4% to $77.90 after the China-based e-commerce platform operator reported sharply lower quarterly earnings.

Revenue in the December quarter slowed to 5% to 260.35 billion yuan, or $36.67 billion, and net income plunged 77% to 10.7 billion yuan, or $1.5 billion, from a year ago, respectively.

The e-commerce giant also expanded its stock repurchase program by $25 billion to $35.3 billion through March 2027.

Chipotle Mexican Grill jumped 2.5% to $2,550.0 after the fast food restaurant operator reported sharply higher quarterly earnings following a surge in store traffic.

Net sales in the quarter increased 15.4% to $2.52 billion, net income rose to $282.1 million from $223.7 million, and diluted earnings per share advanced to $10.21 from $8.02 a year ago.

The restaurant chain operator said foot traffic increased 7.4% and comparable same-store sales advanced 8.4% from a year ago.

For the full year 2024, the company estimated a same-store sales increase in the "mid-single-digit" range and plans to open between 285 and 315 new stores.