US stocks were trading lower in the morning session, with all the major indexes in the red by more than 1%.
The Nasdaq composite was down 2.9%, the S&P 500 -1.1% while the Dow Jones Industrial Average had lost over 360 points in early deals to stand at -2.0%. The Russell 2000 was also struggling around 2.3% down.
In Europe, benchmark indexes were hovering in positive territory as trading drew towards Tuesday’s close.
Elsewhere in the stocks, Asian markets closed sharply lower even as sentiment continued to be dictated by rate hike fears and ongoing geopolitical tensions between Russia and Ukraine.
Earnings season continued on Tuesday, with several companies releasing their fourth-quarter results. After Monday’s IBM highlight, Tuesday saw some highly anticipated results from American Express, Johnson &Johnson, General Electric, and Verizon.
Here’s a recap of the stocks’ performance after the results.
IBM shares jumped more than 3% on Tuesday during the morning session, recouping some of the losses incurred Monday after executives failed to give earnings forecast.
On Monday, IBM reported quarterly earnings of $3.35 per share compared to an expected $3.30 per share. Revenue also rose to $16.70 billion against $15.96 billion.
Johnson & Johnson
Shares of vaccine maker Johnson & Johnson jumped 1.9% in morning trades to cut year-to-date losses to about 3%. The stock price of Johnson & Johnson (NYSE: JNJ) rose after the US-headquartered company’s better-than-expected earnings were released Tuesday.
As per the report, fourth-quarter earnings were at $2.13 per share, adjusted, against $2.12 expected. Quarterly revenue of $24.8 billion was below the expected $25.29 billion.
However, the company was upbeat on its full-year sales, forecasting $3 billion to $3.5 billion will come from Covid vaccine sales.
Shares of General Electric (NYSE: GE) were down 7% after Q4 earnings that showed the company missed its revenue estimates.
Although earnings per share came in at $0.92 against an expected $0.85 per share, the revenue of $20.3 billion was lower than analyst estimates of $21.53 billion.
General Electric said the low sales were due to supply chain bottlenecks over the quarter.
Shares of the credit card company soared 8% in early trades following the company’s Q4 earnings beat analyst estimates. The stock jumped to $174.21 before paring some of the gains.
Earnings rose to $2.18 per share against estimates of $1.87 per share, while revenue of $12.15 billion in the quarter also beat the $11.5 billion expected by Wall Street analysts.
The company expects revenue to grow by 18% to 20% in the financial year 2022.
The earnings continue, with tech giant Microsoft (MSFT) set to report after the bell. Other major earnings results this week will come from Apple (AAPL), Tesla (TSLA) and Visa (V). Boeing Co and AT &T will also report.
As well the earnings of these companies, investors will look to hear from the Federal Reserve after their two-day monetary policy meeting.