Stocks opened higher Tuesday as investors attempted to look past Federal Reserve Chair Jerome Powell's hawkish appearance on "60 Minutes." However, the main indexes ran out of steam as the session wore on as more central bankers took the wait-and-see route toward rate cuts.
The major benchmarks all closed lower Monday after Powell's Sunday night appearance on CBS' "60 Minutes" reiterated what he said following last week's Fed meeting. Specifically, Powell insisted that the Fed will not cut interest rates until it is confident inflation is sustainably moving toward the 2% central bank's target.
The S&P 500 (+0.2% at 4,954) and the Nasdaq Composite (+0.07% at 15,609) traded in negative territory for most of the afternoon after Cleveland Fed President Loretta Mester said "it would be a mistake" to cut rates too soon. "Doing so would undermine all the good work that has gone into getting inflation to this point," she said at a bankers meeting in Columbus, Ohio. Still, the two managed to eke out modest gains by the close.
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.
The Dow Jones Industrial Average outperformed, adding 0.4% to 38,521 thanks to strength in blue chip stocks Walgreens Boots Alliance (WBA, +4.3%) and Nike (NKE, +2.9%).
Palantir stock pops as artificial intelligence platform demand soars
Looking beyond Dow Jones stocks, Palantir Technologies (PLTR) soared 30.8% after the data analytics platform reported higher-than-expected fourth-quarter earnings of 8 cents per share. Revenue of $608 million also beat estimates. And while the company guided for lower-than-anticipated first-quarter revenue, its full-year forecast is higher than Wall Street is expecting.
Additionally, in Palantir's subsequent earnings call, Chief Revenue Officer and Chief Legal Officer Ryan Turner noted that demand for Palantir's Artificial Intelligence Platform (AIP) is "off the charts." This is evidenced by the 103 deals closed in the fourth-quarter that are worth at least $1 million each.
"We are impressed with AI Platform ramping faster than our initial expectations and believe it's appropriate to upgrade shares to reflect the momentum," said Jefferies analyst Brent Thill, who lifted his rating on PLTR stock to Hold from Underperform (Sell). Thill also said he's encouraged by Palantir's full-year free cash flow guidance – a first for the company – of $800 million to $1 billion.
Weight-loss drugs give Eli Lilly's Q4 results a boost
Eli Lilly (LLY, -0.2%) was another notable name in the earnings spotlight. The drugmaker's foray into the weight-loss drug market helped it deliver impressive fourth-quarter results, with earnings per share soaring 19% year-over-year to $2.49. Revenue surged 28% to $9.4 billion. Both figures beat analysts' estimates.
The company's financial results were boosted in part by sales for its type 2 diabetes drug Mounjaro, which rose to $2.2 billion from $279 million in the year-ago period. Revenue from its weight-loss drug Zepbound, which launched in early December, was $175.8 million.
These drugs have also helped boost LLY's share price, with the healthcare stock more than doubling over the past 12 months. And with a $668.7 billion market cap, Eli Lilly is now one of the world's most valuable companies.
Related content
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Tesla Stock: Another Analyst Moves to the Sidelines After Earnings
Tesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Alphabet Stock Falls as Q2 Ad Revenue Growth SlowsAlphabet stock is trading lower Wednesday as slowing ad sales growth offsets a Q2 earnings beat. Here's what you need to know.
-
Stock Market Today: Stocks Slip Ahead of Mega-Cap EarningsGE Aerospace shares soared after earnings while United Parcel Service stock slumped.
-
Is GE Stock Still a Buy After Big Earnings Beat?GE stock is higher Tuesday after the industrial giant's beat-and-raise quarter, but what do analysts think? We take a closer look here.
-
UPS Stock Heads Toward Worst Day Ever After EarningsUPS stock is down big after coming up short of analysts’ expectations for its second quarter and cutting its outlook. Here’s what you need to know.
-
Spotify Stock Surges After Q2 Earnings Beat: What to KnowSpotify stock is flying higher Tuesday after the streaming giant reported its second-quarter earnings results. Here's what you need to know.
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets HigherMarkets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
