Dow Jones rises amid corporate earnings and Fed rate cut outlook

Market Reports

by Manny Anton

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 S&P 500 closed up 0.23% at 4,954.23, while the Nasdaq Composite  finished up 0.07% to close at 15,609.00. The Dow Jones Industrial Average jumped 141.24 points, or 0.37%, to end at 38,521.36.

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.

Shifting to US sectors, Materials and Healthcare were the best performing sectors closing up 1.7 and 1.49% respectively . Tech was the worst performing sector closing down 0.48%.

Tuesday marks around the halfway point of the earnings season, with reports from Amgen, Chipotle Mexican Grill and Ford after the bell. After the bell Chipotle Mexican Grill posted quarterly earnings and revenue that beat analysts’ expectations as more customers visited its restaurants. Shares of the company rose more than 1% in extended trading.

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.


The SPI futures are pointing to a 0.7 per cent gain.


One Australian dollar at 9.00am was buying 65.24 US cents.


Gold added 0.43 per cent. Silver gained 0.33 per cent. Copper added 0.30 per cent. Oil gained 0.99 per cent.

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.


The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.

Manny Anton

Sequoia Financial Group
Manny has over 30 years’ experience in financial markets, banking and corporate advisory. He previously worked at UBS, Credit Suisse and RBC, covering equities and equity derivatives, both domestically and internationally, based in London, Hong Kong and Sydney. Manny has also worked with corporates in IR and development in the energy and resources sectors.

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