:max_bytes(150000):strip_icc()/latestGainersLosers2-c427431e98764713bfc2b4cb43856bd8.png "3M Shares Tumble Following Weak 2024 Outlook")
Key Takeaways
- The S&P 500 gained 0.3% on Tuesday, Jan. 23, 2024, as the markets digested a mixed bag of earnings reports from companies in various sectors.
- Verizon shares moved higher as the telecom giant’s wireless subscriber additions exceeded forecasts.
- Shares of 3M plummeted after the industrial conglomerate issued weaker-than-expected 2024 guidance.
Major U.S. equities were mixed on Tuesday as the markets reacted to earnings reports released by companies across various sectors.
The S&P 500 gained 0.3%, continuing its string of record closing highs, while the Nasdaq added 0.4%. The Dow dropped 0.3%, with a sharp decline in shares of industrial conglomerate 3M (MMM) weighing on the blue-chip index.
Shares of Verizon Communications (VZ) led the S&P 500 higher on Tuesday, gaining 6.7% after the telecom giant beat forecasts on wireless subscriber additions. The company’s CEO pointed to strength in the consumer business and highlighted video streaming deals with Netflix (NFLX) and other services.
Although Procter & Gamble (PG) reported lower-than-expected quarterly revenue and profit, shares of the consumer products company advanced 4.1%. The earnings shortfall was related to a $1.3 billion impairment charge stemming from the Gillette brand, and the company generated organic sales growth of 4% year over year.
Shares of Intel (INTC) ticked 1.4% higher ahead of the semiconductor giant’s earnings report due this Thursday. Chip stocks have been benefitting from enthusiasm about the artificial intelligence (AI) boom, and analysts expect Intel to post higher revenue and profit compared with the year-ago period.
3M was Tuesday’s weakest stock on the S&P 500 and the Dow, plummeting 11.0% after the conglomerate’s outlook for 2024 came in well below expectations. Although 3M beat consensus bottom-line forecasts, its quarterly revenue fell shy of estimates, and its performance has been affected by operational issues and product liability claims.
Home Depot (HD) shares fell 1.7% after analysts at Oppenheimer downgraded the home improvement retailer, citing persistent inflation and its impact on consumers’ wallets through 2024.
Shares of Johnson & Johnson (JNJ) slid 1.6% as the health care giant released better-than-expected earnings but reported that it will pay $700 million to settle states’ claims related to the safety of its talc baby powder. The company also disclosed a separate settlement with the state of Washington tied to the opioid crisis.