- U.S. stock markets posted gains on Thursday, Jan. 26, boosted by positive GDP data and earnings reports.
- A favorable reaction to Tesla earnings contributed to a gain of nearly 1.8% for the Nasdaq, while the S&P 500 and the Dow also moved higher.
- Shares of IBM fell after it became the latest tech company to announce job cuts.
U.S. equities posted solid gains, lifted by corporate earnings and a report showing the U.S. economy grew more than anticipated in the fourth quarter. The Nasdaq was up 200 points, and the Dow advanced for the fifth session in a row.
Tesla (TSLA) was the best-performing stock in the S&P 500 after the electric carmaker exceeded fourth quarter earnings and revenue expectations, reporting strong demand for its vehicles. Seagate Technology (STX) shares jumped as the data storage company beat analysts’ estimates for both profit and sales. Salesforce (CRM) shares gained on a report that the cloud software provider is considering adding board members as it faces pressure from activist investors.
Shares of United Rentals (URI) climbed as the world’s largest equipment rental firm had record revenue and reinstated its stock buyback program. Chevron (CVX) also announced a stock buyback, along with a dividend increase, and its shares jumped. Las Vegas Sands (LVS) shares moved up after the casino operator said that it would expand its operations in Macau. Shares of rivals, including Wynn Resorts (WYNN) and MGM Resorts International (MGM), rose as well.
IBM Job Cuts
IBM (IBM) became the latest tech company to say that it is cutting jobs to reduce costs, and shares dropped. Shares of Southwest Airlines (LUV) lost altitude after the airline had a bigger loss than expected last quarter, and it sees further losses this quarter. Sherwin-Williams (SHW) shares sank as the paint maker warned about profit and sales this year. Bed Bath & Beyond (BBBY) shares cratered after the struggling retailer indicated that it didn’t have enough cash to pay its debts.
Oil futures added 1% on optimism about increasing demand from China. Gold prices fell. The yield on the 10-Year Treasury note was higher. The U.S. dollar was up versus the euro and yen, but it slipped against the pound. The price of Bitcoin (BTC/USD) fell to just over $23,000, and other major cryptocurrencies also lost ground.