Stocks opened higher following solid earnings reports from IBM (IBM), United Technologies (UTX), and Proctor & Gamble (PG). The market saw its highs during the opening hour of trading and by midday the averages had lost their momentum and crossed into negative ground. Concerns about slowing global growth and continued headlines about the lack of progress in ending the government shutdown capped the gains, leaving the S&P nearly unchanged for the session.
ECONOMIC EVENTS: In the U.S., the FHFA home price index rose 0.4% to 269.2 in November. The Richmond Fed's manufacturing index bounced 6 points to -2 in January.
In White House news, U.S. President Donald Trump said in a public letter to House Speaker Nancy Pelosi that he intends to deliver the State of the Union address in the House Chamber next week, ignoring Pelosi's previous recommendation that he delay the event until the government reopened. According to the Wall Street Journal, Pelosi said that the House will not consider a resolution authorizing the speech during the shutdown.
COMPANY NEWS: Shares of IBM jumped 8.5% after "Big Blue" announced last night Q4 earnings and a 2019 outlook that surpassed expectations.
Two other earnings beats from Dow members helped to buoy the blue chip index, as United Technologies rose 5.3% after its Q4 earnings and the mid-point of its initial FY19 guidance topped consensus and Procter & Gamble was 4.9% higher after reporting better than expected core EPS and reaffirming its FY19 core profit outlook.
Comcast (CMCSA) reported better than expected earnings and revenue for the last quarter of 2018, with CEO Brian Roberts stating that he is "pleased with the strong operational and financial results" delivered across the company.
Meanwhile, the Wall Street Journal reported that Verizon (VZ) is laying off 7% of employees in its media group. A spokeswoman for the company told the Journal that the cuts are "a strategic step toward better execution of our plans for growth and innovation in the future."
Additionally, Oracle (ORCL) was in focus after Business Insider reported that the U.S. Labor Department alleged in its ongoing lawsuit against the company said that Oracle underpaid women and minority workers by $400M between 2013 and 2016 in what the department described as "systematic discrimination." In response, Oracle executive VP and General Counsel Dorian Daley said that the "meritless lawsuit" is based on "false allegations" and that the company is "committed to equality."
MAJOR MOVERS: Among the noteworthy gainers was Vipshop (VIPS), which rose 9.4% after KeyBanc analyst Hans Chung upgraded the stock to Overweight from Sector Weight, citing improving fundamentals. Also higher were Accuray (ARAY) and Waters (WAT), which gained a respective 11.3% and 13.1% after reporting quarterly results.
Among the notable losers was Tesla (TSLA), which slid 3.8% after RBC Capital analyst Joseph Spak downgraded the stock to Underperform, a sell-equivalent rating. Additionally, Bloomberg reported that the car maker has reduced production hours of its Model S and Model X vehicles as it shifts more focus toward the mass-market Model 3. Also lower was Capital One (COF), which fell 6.2% after reporting quarterly results.
INDEXES: The Dow rose 171.14, or 0.7%, to 24,575.62, the Nasdaq gained 5.41, or 0.07%, to 7,025.77, and the S&P 500 advanced 5.80, or 0.22%%, to 2,638.70.
