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Key Takeaways
- The S&P 500 index declined 1.6% on Wednesday, Jan. 31, 2024, as big tech earnings rolled in and the Fed held interest rates at their current levels.
- Shares of Rockwell Automation plummeted after the industrial technology firm missed earnings estimates amid supply-chain issues.
- Paramount Global shares jumped higher following news that media mogul Byron Allen had made a bid to buy the company.
U.S. equities indexes posted significant losses as the Federal Open Market Committee (FOMC) said its benchmark interest rates would remain at current levels. Although markets widely anticipated the rate hold, comments from Fed Chair Jerome Powell reduced expectations for a rate cut at the upcoming meeting in March.
The S&P 500 dropped 1.6% during Wednesday’s session. The Nasdaq fell 2.2%, as underwhelming earnings reports contributed to underperformance in the communication services and technology sectors, while the Dow was down 0.8%.
MarketAxess Holdings (MKTX), which operates electronic bond trading platforms, reported better-than-expected sales and profits for the fourth quarter, but its shares plunged 17.8%, making it Wednesday’s weakest stock in the S&P 500. Although the company achieved solid earnings growth, its total expenses increased nearly 20% year over year, driven by growth in employee compensation, technology and communication, and general and administrative costs.
Rockwell Automation (ROK) shares plummeted 17.6% after the industrial technology firm missed sales and earnings estimates for its fiscal fourth quarter. Supply-chain issues and high inventory levels weighed on the results.
Shares of Teradyne (TER) tumbled 7.7% after the semiconductor testing equipment firm said it removed $1 billion worth in manufacturing from China in 2022. The shift came in response to tightened U.S. restrictions on exports of chipmaking equipment to China.
Paramount Global (PARA) shares jumped 6.7%, marking the day’s top performance on the S&P 500. The jump in share price followed reports that media mogul Byron Allen had made a bid to buy the entertainment company. Allen’s roughly $30 billion offer equates to a premium of roughly 50% versus recent share prices.
Shares of medical devices firm Stryker (SYK) added 6.0% after analysts at Baird and Wells Fargo boosted their price target on the stock. The company’s fourth-quarter results topped expectations amid sustained demand for medical procedures.
Despite the recent, highly publicized safety issues, Boeing (BA) reported a smaller-than-anticipated loss for the fourth quarter. Shares of the aircraft manufacturer advanced 5.3%.