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Stocks - Dow Shakes Off Slide in Energy as IBM, United Tech Jump

Published 01/23/2019, 03:43 PM
Updated 01/23/2019, 04:30 PM
© Reuters.
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Investing.com - The Dow closed higher on Wednesday as a surge in IBM and United Technologies helped offset weakness in energy.

The Dow Jones Industrial Average rose 0.70%, the S&P 500 gained 0.22%, while the Nasdaq Composite added 0.08%.

Dow components IBM, United Technologies and Procter & Gamble all rallied after delivering above-consensus results, adding more than 100 points to the Dow 30 and lifting the broader market.

IBM (NYSE:IBM) was the standout performer, soaring 8.5% as its better-than-expected results were complemented by guidance that also topped estimates. Procter & Gamble (NYSE:PG) rose 4.9% and United Technologies (NYSE:UTX) gained 5%.

Capital One (NYSE:COF), however, bucked the trend posting fourth-quarter results that missed on the both top and bottom lines, sending its share price sliding 6%.

Still, the mostly upbeat slew of earnings firmed up the broader market, which had come under pressure following a decline in energy stocks as U.S. oil prices slipped on fears about weak oil demand growth.

The energy sector fell 1%, led by a 3% slump in oilfield services provider Baker Hughes (NYSE:BHGE) ahead of its quarterly report due next week.

Sentiment on Wall Street has also been weighed down by the partial government shutdown, which entered its fifth week, with many worried about the impact on the economy.

White House Chief Economist Kevin Hassett said in an interview with CNN on Wednesday that a weak first quarter and extended shutdown could lead to "very, very low" GDP growth.

President Donald Trump and House Speaker Nancy Pelosi continued to exchanged barbs, souring the prospect that both would able to reach a compromise over the president's demand for $5.7 billion to build his proposed boarder wall.

Hours after Trump said he would give the State of the Union speech in the House chamber next week as planned, Pelosi said Democrats will block the address until the partial government shutdown ends.

Uncertainty over U.S.-China trade, meanwhile, also kept investors on the sidelines despite upbeat remarks from Trump.

"We'll see what happens. But we're doing very well in our negotiations with China," Trump told reporters at a White House event.

Trump's upbeat remarks on trade come a day after top White House economic adviser Larry Kudlow denied reports the U.S. had canceled a trade meeting with Chinese officials that was slated for this week.

Top S&P 500 Gainers and Losers Today:

Waters Corp . (NYSE:WAT), Synchrony Financial (NYSE:SYF) and IBM (NYSE:IBM) were among the top S&P 500 gainers for the session.

Take-Two Interactive Software (NASDAQ:TTWO), Capital One Financial (NYSE:COF) and Whirlpool (NYSE:WHR) were among the worst S&P 500 performers of the session.

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