US stocks experienced a mostly positive day on Tuesday, with the Dow Jones Industrial Average continuing its upward trend following a record close. The blue-chip index climbed approximately 0.4%, while the S&P 500 saw a modest gain of 0.1%. In contrast, the Nasdaq Composite remained relatively flat, impacted by declines from major technology firms Nvidia and Alphabet.
Investors were particularly focused on December’s retail sales data, which was released alongside several significant economic indicators this week, ahead of the highly anticipated January jobs report. The report indicated that retail spending was nearly unchanged from the previous month, highlighting a potential slowdown in consumer activity. Retail sales for December totaled approximately $735 billion, a stark contrast to November’s growth of 0.6%, and falling short of economists’ expectations of a 0.4% increase.
This disappointing data has led to increased speculation surrounding potential interest rate cuts by the Federal Reserve. While many traders still anticipate that the Fed will maintain current rates in the upcoming months, expectations for lower rates by June have risen significantly, with over 75% of traders looking for a decrease.
The sluggish consumer data sets the stage for tomorrow’s jobs report, especially in light of recent indicators suggesting a softening labor market. Following that, the latest Consumer Price Index will be released on Friday, providing further insight into inflation trends as the Fed continues to navigate its dual mandate.
On the corporate front, investors evaluated recent quarterly earnings from major companies, including Coca-Cola and CVS Health. Ford is set to release its quarterly results after the market closes, drawing attention due to ongoing shifts in electric vehicle sales and the repercussions of a recent fire at an aluminum plant.
Gold and bitcoin remain focal points for investors as they attempt to stabilize following sharp declines last week. Despite rallying above the $5,000 mark earlier in the week, gold slightly retreated, although analysts remain optimistic about its long-term prospects. Conversely, bitcoin faced renewed selling pressure, dropping below $69,000 before experiencing a slight recovery, reflecting ongoing volatility attributed to waning investor confidence.
In notable corporate developments, Paramount Skydance is intensifying its efforts to acquire Warner Bros. Discovery, offering a lucrative $2.8 billion termination fee to Netflix and enhancing its all-cash bid to reassure shareholders amidst an ongoing DOJ investigation into Netflix’s competitive practices.
Coca-Cola’s stock fell around 2% after the company projected a conservative growth outlook for 2026, despite a 5% increase in fourth-quarter organic revenue over various regions, surpassing Wall Street’s expectations.
Additionally, S&P Global’s shares began to rebound after a significant drop earlier in the day, following a fourth-quarter earnings report that fell short of analyst forecasts for adjusted profit, although revenue did surpass expectations.
Overall, the trading day reflected typical investor behavior, focusing on economic indicators and corporate earnings, while also grappling with broader market fluctuations influenced by consumer spending shifts and market sentiments surrounding interest rates and inflation.
