US STOCKS-Wall St slips after mixed earnings, strong jobs data
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GM revs up after delivering strong 2024 forecast
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UPS cuts workforce, forecasts 2024 rev below expectations
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U.S. job openings rise to 9.02 mln in December
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Indexes off: Dow 0.04%, S&P 0.08%, Nasdaq 0.24%
(Updated at 10:07 a.m. ET/1507 GMT)
By Ankika Biswas and Johann M Cherian
Jan 30 (Reuters) - Wall Street slipped on Tuesday, following mixed earnings from United Parcel Service and General Motors, as well as resilient labor market data that dampened expectations for an early start to rate cuts.
United Parcel Service slumped 8.1%, after the package delivery giant forecast annual revenue below estimates. It also said it would cut 12,000 jobs and explore strategic options for its truckload freight brokerage business.
The results dragged down Dow Jones Transport Average index 1.5% to a one-week low.
General Motors, on the other hand, jumped 7.1% after the automotive firm forecast upbeat earnings for 2024 and signaled more capital return to shareholders. Ford Motor also gained 1.3%.
After the Labor Department report, which showed December job openings rose 9.026 million above expectations of 8.75 million, the focus will be on the U.S. Federal Reserve two-day policy meeting, set to kick off during the day.
Investors are awaiting the central bank's policy decision and any clues on when it could commence reducing borrowing costs. The Fed is widely expected to leave the key benchmark rate unchanged at 5.25% to 5.50%.
"One of the reasons we're talking about rate cuts is if inflation is coming back down, then keeping rates too high could cause a recession," said Chris Zaccarelli, chief investment officer, Independent Advisor Alliance.
"The only way they're going to get a soft landing is if they cut rates enough to prevent the unemployment rate from spiking up."
While high hopes of nearing rate cuts have supported a steep ascent in megacaps, quarterly company earnings will be key in rationalizing the rich valuations of the momentum stocks after Tesla and Intel disappointed investors with bleak forecasts last week.
Microsoft climbed 0.1% and Alphabet dipped 0.6% ahead of results after market close. While the impact of generative AI is expected to steer the best revenue growth in nearly two years for Microsoft, the effect is likely to be muted for Alphabet's advertising business.
Recent gains in megacaps and chip stocks have helped the benchmark S&P 500 notch several new records, including another intraday record of 4,929.31 points on Monday, following a double-digit rally seen in the final two months of 2023.
At 10:07 a.m. ET, the Dow Jones Industrial Average was down 16.99 points, or 0.04%, at 38,316.46, the S&P 500 was down 4.00 points, or 0.08%, at 4,923.93, and the Nasdaq Composite was down 37.20 points, or 0.24%, at 15,590.85.
Johnson Controls dropped 4.1% after the Ireland-based firm lowered its full-year profit expectations, while MSCI advanced 9.0% after the index provider posted a higher fourth-quarter profit.
Super Micro Computer jumped 5.9%, after the server seller projected stronger-than-expected quarterly sales, and was set to extend its recent AI-fueled rally.
Declining issues outnumbered advancers for a 1.58-to-1 ratio on the NYSE and a 2.21-to-1 ratio on the Nasdaq.
The S&P index recorded 46 new 52-week highs and no new lows, while the Nasdaq recorded 79 new highs and 35 new lows. (Reporting by Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli)
