Stocks rallied into the end of month, with the Dow adding 368 points. All three major benchmarks jumpstarted 2023 with solid January wins, with the S&P 500 and Nasdaq seeing their best monthly starts to the year since 2019 and 2001, respectively.
Investors unpacked a slightly cooler-than-expected employment cost index today, with compensation increasing only 1% for the fourth quarter. This inflation reading came as the Federal Reserve kicked off its policy meeting, which could bring a 25 basis point interest rate hike at its conclusion tomorrow.
Continue reading for more on today's market, including:
- Homebuilding stock enjoyed post-earnings tailwinds.
- Goldman Sachs stock could be good for options bulls.
- Plus, unpacking quarterly results from McDonald's; record revenue fails to boost PFE; and buy this China-based stock on the dip.
5 Things to Know Today
- General Motors (GM) doesn't expect production increases of electric vehicles (EVs) until the second half of 2023, due to battery cell production challenges. (CNBC)
- PayPal (PYPL) announced plans to lay off about 7% of its staff, or roughly 2,000 workers, as the digital payments company continues to cut costs. (MarketWatch)
- McDonald's stock brushed off a quarterly earnings and revenue win.
- Dismal sales outlook cast a shadow on Pfizer's record revenue.
- Buy this China-based stock in time for its next rally attempt.
Gold Prices Extend Monthly Win Streak
Oil prices edged higher on Tuesday, but still shed 2.7% on a monthly basis to mark a third-straight month in the red. Investors remained worried about the incoming interest rate decision and a Organization of the Petroleum Exporting Countries and their allies (OPEC+) committee meeting. March-dated crude rose 97 cents, or roughly 1.3%, to settle at $78.87 per barrel on the day.
Meanwhile, gold prices settled higher to notch a third-straight monthly win. Economic data that pointed to a cooling labor market and a weak economic outlook boosted the yellow metal. April-dated gold, which is now the most active contract, added $6.10, or 0.3%, to settle at $1,945.30 per ounce for the day. For the month, gold rose over 6%.
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