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S&P 500 Escalates As Technology Drops Before Busy Earnings Week By Investing.com



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By Yasin Ebrahim

Investment.com – The S&P 500 index rose on Tuesday, as cyclical sectors including energy posted gains, while technology shares fell to session lows ahead of another busy industry week.

up 0.6%, adding 0.7%, or 237 points, Nasdaq added 0.52%.

The market’s growth angles were found favorable towards the close, with Apple and Microsoft paring some of their losses, as investors awaited another wave of quarterly results from the tech heavyweights. including Alphabet – the parent company of Google due to report after the market close.

Ahead of the results from Alphabet (NASDAQ:), some on Wall Street flagged caution, citing concerns about the impact of Apple’s privacy changes.

“While investors remain relatively optimistic about GOOGL going into print, our view is a bit more cautious on two fronts due to our ad-hoc test and our test scores. Investors have spotted the YouTube ATT/IDFA turbulence,” RBC said in a note.

Facebook (NASDAQ:) and Amazon (NASDAQ:), which reported earnings on Tuesday and Friday, were also higher.

Value stocks including energy, industrials and materials underpin the broader market, with energy leading the way, supported by shares of the energy giant soaring Exxon Mobil (NYSE:).

Exxon reported mixed Q4 results on the back of falling revenue, but the oil giant also announced a new $10 billion share buyback program, sending its shares up more than 6%.

United Park Service (NYSE:) delivered better-than-expected and upbeat quarterly results, sending its stock 14% higher.

As part of the deal operation, AT&T (NYSE:) plans to detail the transfer of its WarnerMedia business to Discovery (NASDAQ:) in a $43 billion deal.

However, the telecom giant also said it cut its dividend by $1.11 per share, down from $2.08 per share and at the lower end of its previously announced range. Its shares fell 4%.

New York Times (NYSE:), meanwhile, said it would buy the popular word game Wordle for an undisclosed amount. Its shares rose more than 3%.

Economically, US manufacturing activity slowed, but less than expected.

for January shows a drop to 57.6, and a deeper dive into the data points to an easing of supply chain problems, albeit at a modest pace.

An ISM reading above 50 indicates an expansion in the manufacturing sector, which accounts for about 12% of the US economy.

“Data shows little progress in battle to rebuild inventory and handle backlogs […] but the magnitude of the changes in these indicators is quite small,” says Jefferies.

“There is still a lot of evidence that supply chain problems persist.”



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