US Stocks Extend Gains to Third Day

February 03, 2022
US Stocks Extend Gains to Third Day

The US stocks gained ground for a third consecutive session on Tuesday, 01 February 2022, with the Dow, the S&P500, and the Nasdaq indexes all managing to end the day higher, thanks to continued bargain hunting following a disappointing January. Meanwhile, positive reaction to the latest earnings news also contributed to the continued advance.

At the close of trade, the Dow Jones Industrial Average index advanced 273.38 points, or 0.78%, to 35,405.24. The S&P500 index climbed up 30.99 points, or 0.69%, to 4,546.54. The tech-heavy Nasdaq Composite Index rose 106.12 points, or 0.75%, to 14,346.

Shares of UPS advanced after the delivery giant reported better than expected fourth-quarter results, provided upbeat guidance, and raised its dividend.

Energy giant ExxonMobil shares also showed a strong move to the upside after reporting fourth-quarter earnings and announcing a new $10 billion share repurchase program.

ECONOMIC NEWS: US Manufacturing PMI Growth Continues To Slow In January- US manufacturing PMI fell to 57.6 in January from a revised 58.8 in December, although a reading above 50 still indicates growth in the sector, the Institute for Supply Management revealed in a report on Tuesday. The index decreased for the third straight month, slipping to its lowest level in over a year.

The continued decline by the headline index came as the new orders index slumped to 57.9 in January from 61.0 in December and the production index slid to 57.8 from 59.4. On the other hand, the report said the employment index inched up to 54.5 in January from 53.9 in December, indicating a modest acceleration in the pace of job growth. The prices index also surged up to 76.1 in January from 68.2 in December, suggesting price growth reaccelerated after a notable slowdown in the previous month.

US Construction Spending Up 0.2% In December- US construction spending inched up by 0.2% to an annual rate of $1.640 trillion in December after climbing by 0.6% to a revised rate of $1.637 trillion in November, the Commerce Department reported on Tuesday. The uptick in construction spending came as spending on private construction advanced by 0.7% to an annual rate of $1.293 trillion. Spending on residential construction jumped by 1.1% to a rate of $810.3 billion, while spending on non-residential construction was virtually unchanged at $482.6 billion. Meanwhile, the report showed spending on public construction plunged by 1.6% to an annual rate of $347.0 billion.