Stocks rose Tuesday as traders wrap up what has been a strong month for equities.
The Dow Jones Industrial Average advanced 42 points, or 0.13%. The S&P 500 climbed 0.19%, while the Nasdaq Composite added 0.35%.
Some large companies reported earnings before the bell. Caterpillar shares fell more than 2% in the premarket after the industrial giant posted its latest quarterly results. Meanwhile, General Motors shares jumped more than 4% in premarket trading after reporting strong earnings.
Those moves build on Monday’s declines. The Dow lost 0.8% in the previous session, while the S&P and Nasdaq Composite fell 1.30% and 1.96%, respectively.
Still, it’s been a stellar January for stocks, otherwise. As of Monday’s close, the S&P 500 and Dow are up 4.64% and 1.72% in January, respectively, and headed for their third positive month in four. The S&P 500 is also on track for its best January since 2019. The Nasdaq Composite has risen 8.86% this month, putting it on pace for its best monthly performance since July.
A solid January could be a good sign for the market, and potentially foreshadow a continued uptick in the months that follow. Of the five instances in which the S&P gained more than 5% in January after a negative year, the benchmark index rose 30% for the year on average, said Carson Group’s Ryan Detrick in a tweet.
However, a busy week of earnings could put this recent rally in jeopardy. Investors are watching closely for comments on how some of the largest companies are faring amid high inflation and fears of slowing consumer spending.
Attention also turns to the latest interest rate decision due out of the Federal Reserve’s latest policy meeting kicking off Tuesday. Traders widely expect a 25 basis point increase, but will monitor commentary for clues into how much further the Fed intends to hike, or when it plans to cut rates.
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