Stocks closed mixed on Tuesday as market participants looked ahead towards the Federal Reserve's next policy decision due on Wednesday. The Dow Jones Industrial Average rose over 130 points, while the S&P 500 Index ended at a negative flatline and the Nasdaq Composite lost nearly 0.8%.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In the News: The International Monetary Fund (IMF) raised its 2024 global growth forecast on Tuesday up a 0.2 percentage point to 3.1%, alongside a 3.2% growth projection for 2025. Beneath the headline, the IMF expects the U.S. to grow by 2.1% in 2024, the EuroZone and Japan to expand by 0.9%, and the United Kingdom to grow by 0.6%.
"The battle against inflation is being won, and we have a higher likelihood of a soft landing. So that sets the stage for central banks, the Federal Reserve, the European Central Bank, the Bank of England, and others, to start easing their policy rates, once we know for sure that we are on that path," said Pierre-Olivier Gourinchas, chief economist at IMF, in the report.
"The projection right now is that central banks are going to be waiting to get a little bit more data ... confirming that we are on that path," Gourinchas added. "And then if we are, then by the second half of the year we'll see rate cuts."
On the Earnings Front: General Motors
"Consensus is growing that the U.S. economy, the job market and auto sales will continue to be resilient, and at GM, we expect healthy industry sales of about 16 million units with the mix of EVs continuing to grow," CEO Mary Barra said regarding the state of the electric vehicle market in the United States.
UPS
Pfizer
In Economic News: Job openings ticked higher in December, the Labor Department reported in its monthly Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday, with vacancies totaling 9.03 million for the month, above November's print of 8.92 million and economist expectations. Moreover, hiring also increased by 67,000, while quits declined by 132,000 and layoffs rose by 85,000 last month.
Meanwhile, the Conference Board's consumer confidence index rose to 114.8 in January, up from 108 in December but slightly below expectations.
"January's increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead, and generally favorable employment conditions as companies continue to hoard labor," said Dana Peterson, chief economist at The Conference Board, in a statement. "Consumer expectations for the next six months increased slightly in January, due to receding pessimism around future business conditions, labor market, and income prospects."
U.S. home prices rose in November, according to the S&P Corelogic Case-Shiller Index on Tuesday, with the 20-city composite index rising 5.4% annually from 4.9% i n October. On a seasonally adjusted basis, the index rose 0.1% month-to-month, while the 10-city composite index increased 0.2%.
For Wednesday: all eyes will be the on the Federal Reserve's latest monetary policy decision due out for release in the afternoon, as well as earnings reports from Microsoft