After two days of strong gains, the stock market settled down Tuesday as investors had plenty of earnings reports to digest. UPS broke out of a base after announcing strong earnings and a bullish outlook.
The Nasdaq, whose two-day rally was the best since April 2002, fell 1%. Tech stocks were lower, with VanEck Semiconductor ETF down 1%.
The S&P 500 fell 0.6%. The Dow Jones Industrial Average eased 0.3%. Volume rose on the NYSE and Nasdaq compared with the same time on Monday.
Tuesday's early stock market moves followed earnings reports from key companies in semiconductors, energy and transportation.
UPS Soars On Earnings
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35026.26 | -105.60 | -0.30 |
| S&P 500 | (0S&P5) | 4490.56 | -24.99 | -0.55 |
| Nasdaq | (0NDQC ) | 14095.78 | -144.10 | -1.01 |
| Russell 2000 | 198.50 | -2.74 | -1.36 | |
| IBD 50 | 37.74 | -0.15 | -0.40 | |
Last Update: 10:08 AM ET 2/1/2022 |
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UPS soared 13% and broke out of a flat base in heavy trading, becoming the best performing stock in the S&P 500 today. Shares are still in buy range from the 220.34 buy point.
The package delivery company topped fourth-quarter estimates early Tuesday. The company also gave strong 2022 guidance and hiked its quarterly dividend by 49% to $1.52 a share. UPS sees 2022 revenue of about $102 billion vs. analyst estimates of about $100 billion.
In the first of several earnings reports in the chip industry, NXP Semiconductors late Monday beat profit expectations for the fourth quarter. The chipmakers also raised its quarterly dividend by 50% to 84.5 cents a share. The stock reversed lower at the 200-day moving average.
Exxon Mobil reported fourth-quarter earnings that topped Wall Street estimates, but revenue missed views. Exxon earned per share of $2.05 on revenue of $85 billion. Revenue of $84.97 billion was up more than 82%, but just short of consensus views. Exxon stock broke out of a cup base Jan. 5 and is extended.
After today's close, Alphabet, Advanced Micro Devices and PayPal report earnings. Starbucks also announces results.
Alphabet, AMD Earnings After Stock Market Close
Alphabet, the parent of Google and YouTube, climbed 1.6% early Tuesday. The stock is forming a new base with a 3,019.43-buy point, though it's still trading below the 50-day moving average. Analysts expect earnings of $27.68 a share, on sales of $72.3 billion, according to FactSet.
Advanced Micro Devices is expected to earn 76 cents a share on revenue of $4.52 billion. AMD shares are trying to rebound from a steep decline, having regained the 200-day line on Monday.
Analysts see PayPal's EPS at $1.12. Starbucks should earn 94 cents a share with sales of $8.49 billion. Starbuck's report comes as the price of coffee beans has soared due to bad weather and strained supply chains. Both stocks are in deep corrections.
Innovator IBD 50 ETF was nearly flat. Global Ship Lease, which topped a 26.61 buy point Monday, added 2.2% and remains in buy range.
