Dow Jones rises amid corporate earnings and Fed rate cut outlook

Note: Figures recorded at 7:40am AEDT. Updated figures and a video recording will be available at 9am AEDT.

The Dow Jones Industrial Average climbed on Tuesday as Wall Street assessed the latest batch of corporate earnings and the timeline for rates cuts from the Federal Reserve.

The broad market index slipped 0.1% while the Nasdaq Composite dipped 0.4%. The Dow Jones Industrial Average rose 30 points, or nearly 0.1%.

Palantir Technologies surged 19% after the company posted a revenue beat in the fourth quarter, while Spotify Technology popped more than 6% after topping expectations and posting an increase in Premium subscribers.

Tuesday marks around the halfway point of the earnings season, with reports from Amgen, Chipotle Mexican Grill and Ford after the bell.

Markets struggled during Monday’s session after Federal Reserve Chair Jerome Powell reaffirmed that a rate cut at the central bank’s March meeting is unlikely, and as bond yields rose.

The expectation for fast-approaching cut, combined with strong earnings from the technology behemoths, have contributed to the market’s push higher in recent weeks. This narrow market leadership, however, has heightened concerns over whether the market can sustain the rally without broader participation.

In other news, the sale of $54 billion worth of three-year US notes boosted overall sentiment, and the US government plans to sell $42 billion of 10-year Treasuries. Loretta Mester, President of the Federal Reserve Bank of Cleveland, expressed optimism about inflation but cautioned against assuming a rapid pace of disinflation, echoing Jerome Powell's comments.

In commodity-related news, China's leading industry association has proposed measures to address copper oversupply amid falling profits, while global mine curtailments have led to a significant decline in processing fees. Market analysts suggest that the Panama shutdown has induced market panic, leading to supply hoarding, and ANZ Banking Group anticipates a potential 4% increase in refined copper prices to reach $8,800 per ton by the quarter's end due to growing supply risks.

Figures around the globe

European markets closed higher. London’s FTSE added 0.90 per cent, Frankfurt gained 0.76 per cent, and Paris closed 0.65 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei fell 0.53 per cent, Hong Kong’s Hang Seng gained 4.04 per cent and China’s Shanghai Composite fell 3.23 per cent higher.

Yesterday, the Australian share market closed 0.58 per cent lower at 7,581.58.

Flagship Investments (ASX:FSI) is paying 4.9 cents fully franked
ResMed Inc (ASX:RMD) is paying 5.1103 cents unfranked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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