Upbeat Earnings from Johnson & Johnson and 3M Boosted SPY

Sector performance

The following graph illustrates the performances of the component sectors of the SPDR S&P 500 ETF (SPY) on Tuesday, January 26.
Upbeat Earnings from Johnson & Johnson and 3M Boosted SPY

The energy sector was in the lead, followed by the industrial sector and the material sector. The rise in oil prices boosted the energy stocks. The rise in oil prices also served to lift metal prices and mining ETFs. As a result, prices of copper, gold, silver, aluminum, and steel went up on January 26, as did the respective mining stocks. The Arca Steel Index (STEEL) rose 5.5% on the day. Newmont Mining (NEM), Freeport-McMoRan (FCX), Nucor (NUE), Alcoa (AA), and Allegheny Technologies (ATI) rose 4.7%, 6.6%, 4.8%, 5.0%, and 3.5%, respectively, on January 26.

Economic updates

The consumer confidence level for January 2016 came in at 98.1 compared to the prior reading of 96.3. The reading was strong because consumers were more optimistic about the labor market, wages, and the overall US economy.

The Richmond Fed Manufacturing Index for January 2016 came in at two as against the prior month’s reading of six. The fall in the index points towards the decline in the industrial activity as conveyed by the Dallas Fed Manufacturing survey report, which was released earlier.

Earnings snapshot

3M stock (MMM) jumped 5.2% after the company’s quarterly report beat analysts’ estimates. The company posted earnings per shares (or EPS) of $1.66 as against the estimated EPS of $1.6. It reported quarterly revenue of $7.3 billion as compared to the estimated revenue of $7.2 billion.

Similarly, pharmaceutical company Johnson & Johnson (JNJ) rose 5.0% after it posted its 4Q EPS of $1.44 and revenues of $17.8 billion compared to EPS and revenues of $1.37 per share and $18.3 billion, respectively, for the same period a year ago.