The Dow Jones index made a substantial gain, climbing around 250 points on Thursday, breathing life into the stock market.
The Dow soared 0.66% to 38,403.91, while the NASDAQ experienced a robust 1.01% rise to 15,316.80. The S&P 500 didn’t lag behind, recording a notable 0.87% increase to 4,887.70.
Investors witnessed impressive gains in the consumer staples sector with a 1.6% rise, fueling optimism in the market.
Meanwhile, energy shares experienced a slight 0.2% decline, providing some contrasting movements.
A Disappointing Outlook from Honeywell
However, the buoyant mood was somewhat dampened by the lackluster performance of Honeywell International Inc HON, which reported a downward revenue trend for its fourth quarter and offered a weak outlook for the future.
Notably, Honeywell reported fourth-quarter fiscal 2023 sales of $9.44 billion, reflecting a 3% increase year-over-year on a reported basis and +2% on an organic basis, missing the consensus of $9.70 billion. Adjusted EPS stood at $2.60 (+3% Y/Y), slightly exceeding the consensus of $2.59. However, for the first quarter, Honeywell envisages adjusted EPS of $2.12-$2.22 (consensus $2.24) and sales of $8.9 billion-$9.2 billion (consensus $9.248 billion).
Stocks Making Waves
Cimpress plc CMPR shares surged a remarkable 23% to $92.54 after the company announced better-than-expected second-quarter financial results and revealed the board’s authorization for the repurchase of up to $150 million of company shares.
In addition to this, NeuroBo Pharmaceuticals, Inc. NRBO experienced a tremendous 72% surge to $5.61 following the company’s announcement of FDA clearance of the IND for a Phase 1 clinical trial of DA-1726 for the treatment of obesity.
Celularity Inc. CELU also caught the positive wave, seeing its shares soar by 28% to $0.4854, with Celularity predicting FY24 net sales of $50 million to $56 million.
On the Flip Side
Revelation Biosciences, Inc. REVB shares went in the opposite direction, plummeting by 61% to $3.40 after the company announced the pricing of a $6.2 million public offering, eliciting disappointment among investors.
Similarly, Peloton Interactive, Inc. PTON witnessed a 23% drop to $4.2711 after the company reported mixed second-quarter financial results and offered third-quarter revenue guidance below estimates, setting a somber tone in the market.
Volcon, Inc VLCN also faced a downward trajectory, falling 23% to $0.1031 following the company’s announcement of a 1-for-45 reverse stock split.
Commodities Market Movements
In the realm of commodities, oil showed a 1.5% decline to $74.69, while gold traded up 0.3% at $2,074.30, painting a mixed picture in the commodities market. Silver also experienced a 0.3% increase, reaching $23.23, and copper fell by 1.4% to $3.8520.
Worldwide Market Snapshot
European shares painted a slightly gloomy picture as the eurozone’s STOXX 600 fell 0.37%, London’s FTSE 100 retreated 0.11%, Spain’s IBEX 35 Index fell 0.63% The German DAX fell 0.26%, French CAC 40 fell 0.89% while Italy’s FTSE MIB Index fell 0.18%.
In the Eurozone, the inflation rate fell to 2.8% year-over-year in January from 2.9% in the previous month. At the same time, the HCOB Eurozone manufacturing PMI showed a climb to 46.6 in January, marking the highest level in ten months. The S&P Global UK manufacturing PMI, however, fell to 47 in January versus the preliminary reading of 47.3, while German manufacturing PMI rose to 45.5 compared to 43.3 in December. Also, the HCOB France manufacturing PMI surged to 43.1 in January from 42.1 in the prior month, offering a mixed bag of results that captivated investors’ attention.
Across the Asia Pacific region, market movements varied, with Japan’s Nikkei 225 falling 0.76%, Hong Kong’s Hang Seng Index gaining 0.52%, China’s Shanghai Composite Index retreating by 0.64%, and India’s S&P BSE Sensex experiencing a 0.14% fall. The Hong Kong Monetary Authority maintained its base rate at 5.75%, while retail sales in Hong Kong showed a 4.8% year-over-year increase in December. Meanwhile, in Japan, the au Jibun Bank Japan manufacturing PMI showed a slight uptick to 48.0 in January from 47.9 in December. The HSBC India manufacturing PMI fell to 56.5 in January versus a flash reading of 56.9. The Caixin China general manufacturing PMI remained steady at 50.8 in January.
Economic Movements
The nonfarm business sector labor productivity recorded a commendable 3.2% increase in the fourth quarter compared to a revised 4.9% rise in the third quarter, painting a positive picture for the economy.
Unit labor costs, however, rose annually by 0.5% in the fourth quarter, marking a sharp contrast to the 1.1% decline experienced in the prior period.
Initial jobless claims in the US increased to 224,000 in the week ended January 27, versus a revised 215,000 in the previous week and compared to market estimates of 212,000, adding some unexpected flavor to the economic landscape. The S&P Global US manufacturing PMI experienced an encouraging rise to 50.7 in January versus a preliminary reading of 50.3, while construction spending also witnessed growth, rising by 0.9% month-over-month to an annual rate of $2,096 billion in December. Moreover, the ISM manufacturing PMI surged to 49.1 in January, marking the highest level since Oct. 2022, compared to 47.1 in December, and topping market estimates of 47, leaving investors pondering over the potential implications on the investment landscape.
