Stock Market Update: Dow Jones Rises in Early Trading Amid Benign Inflation Data
The Dow Jones Industrial Average rose in early trading on Friday, January 31, 2025, as investors reacted to a flurry of earnings reports and a benign reading on inflation. The S&P 500 and Nasdaq Composite also posted gains, with the S&P 500 up 0.5% and the Nasdaq Composite up 1.1% about 30 minutes after the opening bell.
Key Market Movers
1. Apple (AAPL): Shares rose over 2% after the iPhone maker reported better-than-expected earnings.
2. Tesla (TSLA): The EV maker’s shares surged 3% in early trading.
3. Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), and Broadcom (AVGO): These large-cap technology stocks also posted gains.
4. Nvidia (NVDA): The AI chipmaker’s shares were down slightly amid concerns over the impact of a new AI model on the company’s business.
5. Intel (INTC): Shares fell about 1% after the chipmaker reported a narrower-than-expected loss but issued a disappointing outlook.
6. Atlassian (TEAM): The software company’s shares soared 18% after issuing an upbeat revenue outlook amid robust demand for its AI products.
7. AbbVie (ABBV): The pharmaceutical giant’s shares rose 8% after releasing earnings.
8. Exxon Mobil (XOM) and Chevron (CVX): These oil majors fell over 2% each.
Economic Data
1. Personal Consumption Expenditures (PCE) Index: The Fed’s preferred inflation gauge showed that inflation accelerated in December, but the number was in line with economists’ expectations.
2. Interest Rates: The yield on the 10-year Treasury inched lower to 4.50% amid expectations that interest rates may remain steady.
Market Outlook
1. Major Indexes: The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite are on track to post gains for the month, despite a roller-coaster week of trading.
2. Record Highs: The Dow is just 0.3% away from surpassing its record closing high, while the S&P 500 is 0.8% below its record close.
Cryptocurrency and Commodities
1. Bitcoin: The cryptocurrency was little-changed at around $104,400.
2. Gold: Gold futures held steady around $2,850 an ounce.
3. WTI Crude Oil: Oil futures slipped 0.5%.
EXERPT
Dow Jones Today: Stocks Rise in Early Trading After Benign PCE Inflation Data; Major Indexes on Track for January Gains
By Stephen Wisnefski
Stephen Wisnefski
Full BioStephen Wisnefski is the Executive Editor of News at Investopedia. He has more than two decades of experience as a journalist and newsroom leader, including 25 years at Dow Jones and The Wall Street Journal.
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Updated January 31, 2025 10:03 AM EST
Traders work on the floor of the New York Stock Exchange
Timothy A. Clary / AFP / Getty ImagesStocks rose in early trading Friday as investors responded to a barrage of earnings reports and a benign reading on inflation.
The S&P 500 and Nasdaq Composite were up 0.5% and 1.1%, respectively, about 30 minutes after the opening bell, while the Dow Jones Industrial Average rose 0.1%. The major indexes are on track to post gains for the month, despite a roller-coaster week of trading fueled by corporate results, the Federal Reserve’s latest decision on interest rates and the revelation that Chinese startup DeepSeek had launched a highly effective, low-cost AI model.
Apple (AAPL) was among the noteworthy gainers early Friday, with shares rising more than 2% after the iPhone maker late yesterday reported better-than-expected earnings.
Other large-cap technology stocks were mostly higher this morning, led by a 3% gain for EV maker Tesla (TSLA). Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN) and Broadcom (AVGO) also moved higher. AI chipmaker Nvidia (NVDA), which has been hard hit in the wake of the DeepSeek news, was down slightly.
Among other post-earnings movers, Intel (INTC) shares were down about 1% after the beleaguered chipmaker reported a narrower-than-expected loss for the fourth quarter but issued a disappointing outlook. Atlassian (TEAM) shares soared 18% after the software company issued an upbeat revenue outlook amid robust demand for its AI products. Pharmaceutical giant AbbVie was up 8% after releasing earnings, while oil majors Exxon Mobil (XOM) and Chevron (CVX) each slid more than 2%.
On the economic data front, the Personal Consumption Expenditures index, which is the Fed’s preferred inflation gauge, showed that inflation accelerated in December, though the number was in line with economists’ expectations. The Fed earlier this week opted to leave its influential fed funds rate unchanged, after having cut it by a full percentage point since September, as the economy has continued to show strength and inflation remains stubborn.
The yield on the 10-year Treasury, which is correlated with expectations about where interest rates are headed, inched lower this morning to 4.50%.
Bitcoin was little-changed at around $104,400, while gold futures held steady around $2,850 an ounce and WTI crude oil futures slipped 0.5%.
Atlassian Levels to Watch as Stock Soars After Earnings
22 minutes ago
Atlassian (TEAM) shares surged in early trading Friday after the software company late yesterday issued an upbeat revenue outlook amid robust demand for its AI-powered cloud offeringsSince early December, Atlassian shares have consolidated in a pennant, a chart pattern that signals a continuation of the stock’s strong uptrend that started in August. The stock is now set to stage a decisive breakout from the pennant in Friday’s trading session.
This image depicts the TEAM chart.
Source: TradingView.com.
It’s also worth pointing out that even before the latest financial results, the stock registered its highest weekly volume since early November, suggesting that some larger market participants had positioned for the stock to resume its trend higher.Atlassian shares were up 18% at $315, trading at their highest levels in three years.
Read the full technical analysis piece here.
-Timothy Smith
Major Indexes Set to Post Monthly Gains
1 hr 27 min ago
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are solidly in the green for the month heading into the last trading day of January.The Dow is up 5.5% this month, while the S&P 500 and Nasdaq have gained 3.2% and 1.9%, respectively, since the start of the year. The Dow and S&P 500 posted losses in December, while the Nasdaq is on course to finish higher for the third consecutive month.
DJIA vs S&P 500 vs Nasdaq Composite chart YTD
TradingViewThe Dow enters Friday’s session just 0.3% away from surpassing its record closing high set on Dec. 4. The S&P 500 is 0.8% below its record close, set last week, while the Nasdaq is 2.5% beneath its all-time closing high.
Major Index Futures Higher This Morning
2 hr 1 min ago
Futures tied to the Dow Jones Industrial Average were up 0.3%.DJIA futures – Jan. 31, 2025
TradingViewS&P 500 futures were up 0.4%.
S&P 500 futures – Jan. 31, 2025
TradingViewNasdaq 100 futures rose 0.7%.
Source:Invespedia
