Dow Jumps 250 Points; Honeywell Issues Weak Forecast

U.S. stocks traded higher toward the end of trading, with the Dow Jones index gaining around 250 points on Thursday.

The Dow traded up 0.66% to 38,403.91 while the NASDAQ rose 1.01% to 15,316.80. The S&P 500 also rose, gaining, 0.87% to 4,887.70.

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Leading and Lagging Sectors

 

Consumer staples shares rose by 1.6% on Thursday.

In trading on Thursday, energy shares fell by 0.2%.

 

Top Headline

 

Honeywell International Inc HON reported downbeat revenue for its fourth quarter and issued weak outlook.

Honeywell reported fourth-quarter fiscal 2023 sales of $9.44 billion, up 3% year-over-year on a reported basis and +2% on an organic basis, missing the consensus of $9.70 billion. Adjusted EPS was $2.60 (+3% Y/Y), beating the consensus of $2.59.

For the first quarter, Honeywell sees adjusted EPS of $2.12-$2.22 (consensus $2.24) and sales of $8.9 billion-$9.2 billion (consensus $9.248 billion).

 

Equities Trading UP

 

Cimpress plc CMPR shares shot up 23% to $92.54 after the company reported better-than-expected second-quarter financial results and said the board authorized the repurchase of up to $150 million of company shares.

Shares of NeuroBo Pharmaceuticals, Inc. NRBO got a boost, surging 72% to $5.61 after the company announced FDA clearance of the IND for a Phase 1 clinical trial of DA-1726 for the treatment of obesity.

Celularity Inc. CELU shares were also up, gaining 28% to $0.4854. Celularity said it sees FY24 net sales of $50 million to $56 million.

 

Equities Trading DOWN

 

Revelation Biosciences, Inc. REVB shares dropped 61% to $3.40 after the company announced pricing of $6.2 million public offering.

Shares of Peloton Interactive, Inc. PTON were down 23% to $4.2711 after the company reported mixed second-quarter financial results and issued third-quarter revenue guidance below estimates.

Volcon, Inc VLCN was down, falling 23% to $0.1031 after the company announced a 1-for-45 reverse stock split.

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Commodities

 

In commodity news, oil traded down 1.5% to $74.69 while gold traded up 0.3% at $2,074.30.

Silver traded up 0.3% to $23.23 on Thursday while copper fell 1.4% to $3.8520.

 

Euro zone

 

European shares were lower today. The eurozone’s STOXX 600 fell 0.37%, London’s FTSE 100 fell 0.11% while Spain’s IBEX 35 Index fell 0.63% The German DAX fell 0.26% French CAC 40 fell 0.89% while Italy’s FTSE MIB Index fell 0.18%.

The inflation rate in the Eurozone fell to 2.8% year-over-year in January from 2.9% in the prior month. The HCOB Eurozone manufacturing PMI climbed to 46.6 in January, recording the highest level in ten months.

The S&P Global UK manufacturing PMI fell to 47 in January versus the preliminary reading of 47.3, while German manufacturing PMI rose to 45.5 in January from 43.3 in December. The HCOB France manufacturing PMI climbed to 43.1 in January from 42.1 in the prior month.

 

Asia Pacific Markets

 

Asian markets closed mostly lower on Thursday, with Japan’s Nikkei 225 falling 0.76%, Hong Kong’s Hang Seng Index gaining 0.52% and China’s Shanghai Composite Index falling 0.64%. India’s S&P BSE Sensex, meanwhile, fell 0.14%.

The Hong Kong Monetary Authority maintained its base rate at 5.75%. Retail sales in Hong Kong rose 4.8% year-over-year in December compared to a revised 12.4% surge in the earlier month. The au Jibun Bank Japan manufacturing PMI edged higher to 48.0 in January from 47.9 in December.

The HSBC India manufacturing PMI fell to 56.5 in January versus a flash reading of 56.9. The Caixin China general manufacturing PMI came in unchanged at 50.8 in January.

 

Economics

 

Nonfarm business sector labor productivity rose by 3.2% in the fourth quarter compared to a revised 4.9% increase in the third quarter.

Unit labor costs rose an annualized 0.5% in the fourth quarter versus a revised 1.1% decline in the prior period.

U.S. initial jobless claims increased to 224,000 in the week ended January 27, versus a revised 215,000 in the prior week and compared to market estimates of 212,000.

The S&P Global US manufacturing PMI rose to 50.7 in January versus a preliminary reading of 50.3.

Construction spending rose by 0.9% month-over-month to an annual rate of $2,096 billion in December.

The ISM manufacturing PMI rose to 49.1 in January, notching the highest level since Oct. 2022, compared to 47.1 in December, and topping market estimates of 47.

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