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US markets end mostly lower on Tuesday

25 Jan 2023 Evaluate

The US markets ended mostly lower on Tuesday as traders expressed some uncertainty about the near-term outlook for the markets following recent volatility. Uncertainty about the outlook for interest rates and the economy have also kept some traders on the sidelines ahead of the release of some key economic data in the coming days. Further, a negative reaction to some of the latest earnings news contributed to pullback, with 3M (MMM) posting a steep loss after reporting weaker than expected fourth quarter earnings and providing disappointing guidance. Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets. Natural gas stocks showed a significant move to the downside, however, with the NYSE Arca Natural Gas Index falling by 1.3 percent.

On the economic data front, continuing to signal a near-term recession for the U.S. economy, the Conference Board released a report showing another sharp drop by its reading on leading U.S. economic indicators in the month of December. The Conference Board said its leading economic index dove by 1.0 percent in December after tumbling by a revised 1.1 percent in November. Street had expected the index to decrease by 0.7 percent compared to the 1.0 percent slump originally reported for the previous month. Meanwhile, the report said the coincident economic index inched up by 0.1 percent in December after coming in unchanged in November.

Nasdaq fell 30.14 points or 0.27 percent to 11,334.27 and S&P 500 was down by 2.86 points or 0.07 percent to 4,016.95. However, Dow Jones Industrial Average gained 104.4 points or 0.31 percent to 33,733.96.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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