Stocks rose higher on Wednesday ahead of two key inflation reports scheduled for release later this week, as investors remain optimistic towards the U.S. economy's recovery. The Dow Jones Industrial Average climbed over 170 points, while the S&P 500 Index and Nasdaq Composite rose roughly 0.6% and 0.8%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Making headlines, Wells Fargo analyst Christopher Harvey wrote in a Wednesday note that investors should be cautious ahead of the fourth-quarter earnings season, offering a cautious outlook due to historical seasonal weakness for stocks throughout the January-February months.
"We are cautious entering peak earnings season given: (1) the expected 'management' of 2024 guidance, perhaps driven by weaker pricing/volume trends; and (2) the negative post-earnings returns for the 21 'off-season' SPX firms that have reported," Harvey wrote.
Earnings reports from major stocks including Bank of America
Also in major Wednesday news, Amazon
"Throughout the past year, we've looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalized, easy to use entertainment experience for our global customers," Hopkins wrote in the memo, quoted by CNBC. "As a result, we've identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization."
On the earnings front, WD-40
In single-stock news, Hewlett Packard Enterprise
Lennar Corp
For Thursday, market participants will react to December's consumer price index (CPI) reading due out in the morning.