Stock Market News From Jan. 23, 2023: Dow Closes Lower; S&P 500 Hits Another Record; Verizon, GE, Johnson & Johnson, Netflix, More Market Movers; Bitcoin Price Tumbles; Alibaba, China Stocks Rise on Stimulus Report (2024)

What to Watch Today

Netflix and Texas Instruments report after the bell.

Meanwhile, the yield on the benchmark 10-year U.S. Treasury note rose to 4.141% . Bitcoin tumbled below $40,000.

Attention will shift to New Hampshire later in the day for the Republican primaries, with former South Carolina Nikki Haley looking to challenge former president Donald Trump’s lead.

Stocks largely gained Tuesday, with the S&P 500 marking its third- straight record close.

The Dow Jones Industrial Average fell 0.3%, beaten down by 3M’s losses. The S&P 500 gained 0.3%. The tech-heavy Nasdaq Composite advanced 0.4%

In the latest batch of earnings, 3M’s disappointing guidance crushed the stock, whereas United Airlines and Verizon stocks rose after upbeat reports.

Netflix and Texas Instruments report after market close.

Netflix’s stock saw some market action after it announced a deal with the WWE wrestling federation to broadcast its weekly show Raw._

Treasury yields gained Tuesday after a strong auction. The 10-year yield ended the day at 4.141%.

Auction of 5-year and 7-year notes is set for tomorrow.

The direction of yields in the near-term will likely be governed by Treasury’s refunding announcement on Jan. 31. Investors will learn how much supply or government debt will come into the market.

Instacart's termination of its post-IPO lock-up on shares may create some bumps in the road for the stock.

The grocery-delivery company says Tuesday that its lock-up and market stand-off agreements with its IPO will terminate Feb. 15.

Benchmark analyst Mark Zgutowicz says in a research note that the influx of shares open for sale will lead to an imbalance in supply and demand.

That may weigh on shares, and he downgrades his rating to hold until the event is "properly digested" in the market.

Zgutowicz initiated coverage of the company just a day earlier with a buy rating. Shares fall 6.9% to $25.29.

Treasury yields recover as markets wait for U.S. economic activity and inflation data later this week.

The 10-year gains 0.048 percentage point to 4.141% and the two-year rises 0.007 p.p. to 4.383%.

Markets expect durable goods orders and GDP to slow on Thursday, with jobless claims edging higher.

PCE inflation, due Friday, is forecast to cool a little.

Meanwhile, markets now see the Fed starting to cut interest rates in May and no longer in March.

Crude oil prices settle lower in fluctuating trade, unable to hold on to the previous day's geopolitically driven gains.

On the downside, Libya's National Oil Corp. says it has lifted force majeure on its 300,000 barrels-a-day Sharara oilfield that was shut down for several weeks due to protests.

Focus turns to Wednesday's EIA inventories report for the week through Jan. 19, which is expected to show a 1.4 million-barrel draw on crude stocks, a 700,000-barrel decline in distillates stocks but a 1.5 million-barrel build in gasoline stocks, according to a Wall Street Journal survey.

WTI for March delivery settles down 0.5% at $74.37 a barrel, and Brent falls 0.6% to $79.55 a barrel.

U.S. natural gas prices stage a late recovery and rise for the first time in six sessions as weather forecasts continue to show warmer temperatures through early February.

"While more winter weather is likely to show up, once we get February on the calendar, cold weather forecasts become less and less of a factor for prices," says Dennis Kissler of BOK Financial in a note.

The above-average storage draws expected for last week and this week would need to continue next month to lift prices significantly, "and the probability of such an occurrence is low," he adds.

The Nymex February contract settles up1.3% at $2.450/mBtu.

S&P Global Ratings places Archer Daniels Midland on CreditWatch with negative implications, after the agri-business company placed its CFO on administrative leave pending an investigation into accounting practices with respect to its Nutrition reporting segment.

S&P says although the investigation involves a "relatively small business segment, it could reveal findings that are relevant to ADM's broader procedures for decision making and regulatory compliance as it seeks to strike a balance between its interests and those of its stakeholders."

S&P says any negative findings "could lead us to downgrade the company depending on their severity and what remedies may be put in place to address them."

Stocks were wavering Tuesday as investors looked ahead to a slew of earnings reports.

The Dow Jones Industrial Average was down 0.3% while the S&P 500 was largely flat. The tech-heavy Nasdaq Composite advanced 0.1%.

Investors are awaiting earnings report from Netflix and Texas Instruments after the close.

The earnings come amid a sign that the economy looks healthy as evidenced from the latest retail sales report and jobless claims data.

Tuesday will see the release of the gross domestic product report and on Friday the Federal Reserve’s preferred inflation gauge, PCE, comes out.

Procter & Gamble's Japanese beauty brand SK-II continues to deal with a boycott in Greater China, suggesting Shiseido will report similar issues.

P&G's CFO Andre Schulten says the SK-II brand was down 34% in the latest quarter, driving an overall decline in the mid single digits across its skin and personal care category.

P&G's research is indicating SK-II brand sentiment is improving, but it won't see a sequential improvement until the back half of the year, Schulten says in a call with analysts.

Chinese consumers have turned away from Japanese merchandise after Japan started to release water from the f*ckushima nuclear power plant into the Pacific Ocean.