Stock Market Today: Stocks Gain Ahead of Fed Meeting
Exxon Mobil (XOM) and General Motors (GM) both popped after reporting solid earnings.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter

Stocks closed higher Tuesday as investors parsed the latest round of earnings and economic data.
One of the day's most notable earnings reports came from Exxon Mobil (XOM (opens in new tab)), with the energy giant reporting record profits for all of 2022. And on the economic front, a welcome reading on inflation hit the newswires as the Federal Reserve kicked off its first policy meeting of 2023.
Taking a closer look at XOM's earnings, the oil major said it brought in $12.9 billion in profit in the fourth quarter, bringing its full-year earnings to $55.7 billion. On a per-share basis, Q4 earnings of $3.09 fell short of the consensus estimate. Still, the energy stock rose 2.2% on the day.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Another big earnings mover on Tuesday was General Motors (GM (opens in new tab)), which jumped 8.3% after the carmaker said fourth-quarter earnings increased 57% year-over-year to $2.12 per share. Revenue was up 28.4% to $43.1 billion – easily beating analysts' expectations.
As for that economic data, the Labor Department this morning said its employment cost index (ECI) (opens in new tab), which measures labor costs, rose 1.0% in the fourth quarter. This was slower than the 1.2% rise seen in the third quarter and below what economists were expecting. "The move in the right direction will be welcomed by the Fed but it still remains elevated, and this won't do anything to change the Fed calculus in the near-term," says Michael Reinking, senior market strategist at the New York Stock Exchange. And that calculus, as the market is expecting, will be the Fed's announcement tomorrow afternoon of a 25 basis point (0.25%) interest rate hike.
At the close, the Dow Jones Industrial Average was up 1.1% at 34,086, the S&P 500 was 1.5% higher at 4,076, and the Nasdaq Composite had added 1.7% to 11,584.
The Closed-End Funds to Buy
The stock market ended January with impressive gains. The Dow rose 2.8%, the S&P 500 rallied 6.2%, and the Nasdaq surged 10.7%. "What had been expected as dip and rip this year may be playing out as rip and dip as the markets continue to advance due to evidence of declining inflation," says Phillip Toews, CEO of Toews Asset Management (opens in new tab). However, with the market pricing in potential rate cuts later this year, "investors are assuming a best-case scenario, so risks are to the downside." In other words, the volatility we've seen in the stock market over the last 12 months could be far from over.
Investors have many ways to play defense against the ups and downs of this market, including embracing income-paying investments. The Dividend Aristocrats – widely considered Wall Street's best dividend stocks due to their decades of consistent payout growth – are a good place to find dependable income payers. Meanwhile, real estate investment trusts (REITs) and healthcare stocks are loaded with names sporting generous yields. As for investors looking to take a less well-worn path, they might want to check out the best closed-end funds (CEFs) too. These high-yield funds can significantly boost your income and allow you to buy the underlying stocks and bonds at a discount.
With over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
-
ETF Funds for Anti-ESG Investors
A new crop of anti-ESG ETF funds offers an alternative to investments that focus on environmental, social and corporate governance issues.
By Kim Clark • Published
-
Stock Market Today: Stocks Finish Mostly Higher After First Citizens Buys SVB Assets
The Nasdaq closed lower, though, as mega-cap tech stocks declined.
By Karee Venema • Published
-
Stock Market Today: Stocks Finish Mostly Higher After First Citizens Buys SVB Assets
The Nasdaq closed lower, though, as mega-cap tech stocks declined.
By Karee Venema • Published
-
Stock Market Today: Stocks Brush Off Deutsche Bank Troubles
Troubling financial sector headlines kept stocks lower for most of the day, but the major indexes pushed higher by the close.
By Karee Venema • Published
-
Best Defensive Stocks to Buy Now
Investors are concerned about the financial sector and the economy, but these best defensive stocks have risk-averse traits that can help calm those fears.
By Mark R. Hake, CFA • Published
-
Stock Market Today: Stocks Close Higher in Volatile Session
The major indexes spent most of Thursday in rally mode, but selling pressure emerged in afternoon trading.
By Karee Venema • Published
-
If You'd Put $1,000 Into Amazon Stock 20 Years Ago, Here's What You'd Have Today
Amazon AMZN stock has lost almost $900 billion in value since its all-time high, but bulls say it's only a matter of time before it reclaims its heights.
By Dan Burrows • Published
-
Stock Market Today: Stocks Sink After Latest Fed Rate Hike
The major indexes sold off sharply Wednesday even amid signs the Fed's rate-hike campaign could be nearing an end.
By Karee Venema • Published
-
Stock Market Today: Markets Up Again as Bank, Energy Stocks Outperform
The major indexes closed higher for a second straight day ahead of tomorrow's highly anticipated Fed decision.
By Karee Venema • Published
-
9 Best Green Energy Stocks to Buy Now
The future for renewable energy is bright, and these green energy stocks are poised to profit on the growing trend toward sustainability.
By Deborah Yao • Published