On Tuesday, manufacturers from sticky notes to jet engines to commercial software revealed their outlook for 2023 to Wall Street. The market is cautious and optimistic.
The three major stock indices in the United States opened higher and held onto their gains. The Dow Jones index rose about 200 points, or 0.6%. The S&P 500 index climbed 0.7%, while the Nasdaq Composite Index rose 0.9%.
In recent weeks, the sharp fluctuation of US treasury bond bonds has raised the borrowing costs of Americans, and complicated investors' expectations of when the Federal Reserve might cut interest rates, which made the financial market panic. The yield of the benchmark 10-year treasury bond bond stabilized at 4.840% on Tuesday.
This helped boost the stock prices of six of the seven major technology companies that drove the stock market up in the first half of this year. Meta Platforms fell 0.5% after 41 states and the District of Columbia jointly filed lawsuits accusing the company of incorporating addictive features that harm young users on Facebook and Instagram.
Traders pay close attention to large technology stocks as wind vanes, and weigh whether to keep funds in the stock market or snap up ultra safe US treasury bond bonds. On Tuesday, Alphabet, a subsidiary of Microsoft and Google, both rose, but the post market trend was mixed. Microsoft continued its rise after announcing better than expected results, while Alphabet's stock price weakened after reporting better than expected results.
On Tuesday, almost all sectors of the S&P 500 index rose, except for energy stocks, as the decline in oil prices affected the outlook for companies. Despite the uncertainty surrounding the Israel Hamas war earlier this month driving up crude oil prices, benchmark US crude oil futures have fallen for three consecutive trading days, falling to $83.74 per barrel due to traders feeling uncertain about fuel consumption prospects.
In the industry's first major financial report, oilfield service company Halliburton reported better than expected profits due to strong international drilling demand. The company's stock price fell by 3.4%.
Chevron's stock price fell for the second consecutive trading day after announcing its acquisition of oil producer Hess for $53 billion.
Tuesday's performance forecasts for major companies were also unexpectedly optimistic. 3M Company (3M) raised its profit forecast, resulting in a 5.3% increase in its stock price; Coca Cola also raised its expectations, with its stock price rising 2.9%. General Electric raised its outlook and stated that it would spin off its electricity business next spring, causing its stock price to soar 6.5%.
For RTX, formerly known as Raytheon Technologies, the $10 billion new stock repurchase eased the quarterly loss impact of compensation and repairs caused by gear turbofan engine failures. The stock of this aerospace and defense company surged 7.2%.
The biggest gainer in the market was Verizon, whose stock price rose 9.3% after the telecommunications giant announced that it expected cash flow to increase by $1 billion this year compared to previous expectations, leading the Dow and S&P 500 higher.