In late morning trading Tuesday, the Dow Jones industrials were up 0.28%, the S&P 500 up 1.02% and the Nasdaq up 0.66%. The report on employment costs in the fourth quarter came in lower than expected. That is a good thing and helped moderate fears of a sharper-than-expected rate hike when the FOMC meeting concludes Wednesday afternoon.
After markets closed Monday, NXP Semiconductors said it fell short of the consensus earnings per share (EPS) estimate. The Dutch chipmaker beat the revenue estimate but guided current quarter sales below the consensus, although EPS guidance was in line with forecasts. Shares traded up 2.2% on Tuesday.
Before markets opened Tuesday morning, General Motors reported solid beats on both the top and bottom lines. The company issued upside fiscal 2023 guidance with a bonus of $5 billion to $7 billion in free cash flow from its automotive operations. Shares traded up by nearly 8%.
Caterpillar missed the consensus EPS estimate but posted better-than-expected revenue. Cat booked more than $1.1 billion in noncash charges in the fourth quarter and took a hit from the strong dollar. Shares traded down 3.8%.
Exxon Mobil beat the EPS estimate and revenue jumped 12.3% year over year and beat the consensus estimate for the fourth quarter by 5.7%. Production was up by about 100,000 barrels of oil equivalent per day, but lower prices for crude and natural gas cut into earnings. The stock traded up by 1.9%.
McDonald’s beat consensus top-line and bottom-line estimates on a sales jump of 5% globally (13% in constant currency). The company warned that short-term inflationary pressure is expected to continue into this year. Shares traded down 2.6% on Tuesday.
Pfizer posted a mixed quarter, beating the earnings estimate but missing on revenue. What hurt shares Tuesday morning was a downside estimate on 2023 revenue related to COVID-19 treatments. The stock traded down about 0.5%.
UPS also missed the consensus revenue estimate but beat on earnings. As with Pfizer, downside revenue guidance for 2023 was partially offset by estimated dividend payments totaling $5.4 billion and buybacks totaling $3 billion for the year. Shares traded up 3.3%.
AMD and Snap are on deck to report earnings later on Tuesday, and Altria, Enterprise Products Partners, Peloton and T-Mobile will share their results first thing Wednesday morning.
Here are previews of four companies reporting quarterly results before U.S. markets open on Thursday.
Bristol-Myers Squibb
Bristol-Myers Squibb Co. (NYSE: BMY) has added almost 11% to its share price over the past 12 months. The stock has dropped more than 6% in the past three months and is up by just 0.1% since the beginning of the year. Bristol-Myers Squibb reports results Thursday morning.
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