Tuesday, February 01, 2022

DJIA: 35,405.24, up 273.38
S&P 500: 4,546.54, up 30.99
Nasdaq: 14,346.00, up 106.12
S&P 500 caps three-day win streak

U.S. stocks finished higher on Tuesday as investors digested economic data and corporate earnings. The S&P 500 climbed 0.7%, while the Nasdaq Composite jumped 0.8% as the two benchmarks aimed to recover from their biggest monthly drawdowns since March 2020. The S&P 500 advanced for a third consecutive session for the first time this year, with its three-day rally the strongest since the depths of the pandemic (+5%). The Dow gained 273 points, back within 3.8% of its January 4 record.

On the data front, an update from the Institute for Supply Management showed U.S. manufacturing activity expanded at the slowest pace since November 2020 last month, while a component measuring input costs spiked. Separately, the Jobs Openings and Labor Turnover Survey (JOLTS) revealed the number of available positions unexpectedly increased in December to 10.9 million. Treasuries were little changed, with the yield on the 10-year note holding steady at 1.79%, on the heels of a 28-basis point (0.28%) increase in January. In commodities, West Texas Intermediate crude hovered at a seven-year high after logging its best month since February 2021 (+17.5%).

In earnings, United Parcel Service Inc. surged 14% following positive guidance and a boost to its dividend. Elsewhere, Exxon Mobil Corp. gained 6.5% after topping analyst profit estimates and announcing a new $10 billion share repurchase program. In other corporate news, AT&T Inc. slid 4.2% after slashing its dividend by almost 50% and sharing plans to spin off its stake in WarnerMedia after a previously announced combination of the unit with Discovery Inc.

Read more about it here.