- U.S. stocks posted losses at the top of what could be an important week for the markets, with tech earnings, the Fed meeting, and the jobs report expected to make in impact.
- The Nasdaq dropped nearly 2% on Monday, Jan. 30, while the S&P 500 was down 1.3%. The Dow also ended the session lower.
- Despite the overall decline in the markets, food stocks such as Hershey (HSY), Kraft Heinz (KHZ), and Campbell Soup (CPB) posted gains.
U.S. equities were lower to begin what is likely to be an important five days for the markets. Major tech firms, including Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META), will be among those releasing quarterly earnings this week. The Fed holds a two-day meeting beginning tomorrow, and it's expected to announce an interest rate decision on Wednesday. On Friday, the Labor Department will release its much-anticipated monthly jobs report.
Tech stocks were a major drag on the session, with the Dow snapping a six-day winning streak. Shares of all the FAAMG companies were lower. Last week's big runup in Tesla (TSLA) shares hit a speed bump, as the electric vehicle (EV) maker's shares slipped 6%. Ford (F) responded to Tesla's recent price cuts with price reductions of its own on the Mustang EV, and its shares fell. Shares of rivals General Motors (GM) and Stellantis (STLA) were also lower.
A report indicating that memory chip prices will continue to drop in the first half of this year sent shares of semiconductor companies tumbling. Johnson & Johnson (JNJ) shares sank as a court ruled that the pharmaceutical and consumer products manufacturer couldn't use the bankruptcy of one of its units to shield the firm from liability in cancer-related talcum powder lawsuits. A class action lawsuit accusing Generac Holdings (GNRC) and certain officers of securities violations sent shares of the alternative energy company lower.
Investors Gobble Up Food Stocks
Shares of food makers Hershey (HSY), Kraft Heinz (KHC), and Campbell Soup (CPB) rose. GE HealthCare Technologies (GEHC) released its first earnings report since being spun off of General Electric (GE), and investors liked the news, with shares moving up 2%. Shares of auto parts retailers O'Reilly Automotive (ORLY), AutoZone (AZO), and Advance Auto Parts (AAP) all advanced. Goldman Sachs (GS) and Verizon Communications (VZ) were the only stocks in the Dow to add as much as 1%.
It was a down day for both oil and gold futures. The yield on the 10-year Treasury note was higher. The U.S. dollar gained on the euro, pound, and yen. The price of most major cryptocurrencies sank.