Wall Street’s major indexes are sluggish after quarterly company reports

Jan 24 (Reuters) – U.S. stocks were flat on Tuesday after big companies including 3M, Johnson & Johnson and GE beat earnings expectations but warned of a tough year ahead.

Investor attention is focused on the fourth-quarter reporting season, as companies are expected to feel the effects of a series of interest rate hikes by the US Federal Reserve. The central bank is widely expected to hike rates by another quarter of a percentage point next week.

Shares of 3M Co declined after the US industrial conglomerate reported a decline in quarterly profit.

Johnson & Johnson fell 1.03% after the company warned that a surge in COVID-19 cases in China would hit its medical device business in the first half of 2023.

Shares of General Electric Co. rose 0.2% despite slashing 2023 adjusted earnings guidance.

“The problem today is mostly profit,” said Fall Annina of James Investments. “Many are now predicting a slump in profits, which means several quarters of negative numbers.”

Advanced Micro Devices Inc, which a day earlier posted its biggest gain in two months, dropped 2.56% after broker Bernstein downgraded the chip maker’s recommendation to outperform from hold, citing a bleak PC demand.

The Philadelphia SE Semiconductor index fell 0.59% from a one-month high.

Results from the biggest tech companies will help determine whether the euphoria for growth stocks will continue.

“In the short term, the answer appears to be hidden in technical earnings… In the longer term, expect strong positive technical buying if the Fed reverses this year,” JPMorgan analysts wrote in a note to clients. May go.”

Microsoft Corp will present a quarterly report after the close of trading.

The Dow Jones index was stable at a close of 33.631.17 points by 19:11 Moscow time, the S&P 500 fell 0.08% to 4.016.6 points, and the Nasdaq was inactive, at a close of 11.360.57 points.

Activity in the US manufacturing and service sectors slowed the decline in January.

Original message in English available on code: (Shreyashi Sanyal and Johan M Cherian in Bengaluru)

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