Major indexes open higher following Tuesday’s sharp decline – Crypto News

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• US stocks opened in positive territory on Wednesday.
• Wall Street’s main indexes suffered heavy losses on Tuesday.
• Markets see a less than 50% probability of a Fed rate cut in May after January inflation data.

The S&P 500 (SPX) index rises 0.62% to trade at 4,984.85, the Dow Jones (DJIA) increases 0.37% to 38,415.257, and the Nasdaq (IXIC) gains 0.65% to trade at 15,757.39 at the time of writing.

What to know as stock markets open

• The Industrials Sector is up more than 1% after the opening bell as the best performing major S&P 500 sector, alongside the Communications Services Sector and the Technology Sector, which gain about 0.9%. 
• DaVita Inc. (DVA) and Uber Technologies Inc. (UBER) shares rise more than 8% as the top performers in the S&P 500. General Holdings Inc. (GNRC) loses 8% in the early trade as the biggest decliner. 
• The CBOE Volatility Index (VIX), Wall Street’s fear gauge, is down 9% after rising nearly 14% on Tuesday. 
• Inflation in the US, as measured by the change in the Consumer Price Index (CPI), softened to 3.1% on a yearly basis in January from 3.4% in December, the US Bureau of Labor Statistics (BLS) reported on Tuesday. This reading came in above the market expectation of 2.9%. The Core CPI, which excludes volatile food and energy prices, rose 3.9% in the same period, matching December’s increase and surpassing analysts’ estimate of 3.7%.
• According to the CME FedWatch Tool, the probability of a Federal Reserve (Fed) rate cut in May declined toward 30% from nearly 55% ahead of the January inflation data.
• Later in the week, January Retail Sales, Industrial Production and Producer Price Index (PPI) data will be featured in the US economic calendar.
• On Tuesday, Coca-Cola Co. (KO) reported that revenue rose 7.4% to $10.95 billion from a year ago for the quarter ended in December, per Reuters. The company announced that the quarterly net income was $1.97 billion for that period and cited higher product prices and robust demand for the upbeat results.
• Airbnb Inc. (ABNB) said after the closing bell on Tuesday that quarterly adjusted earnings were 76 cents per share in the quarter ended in December. The company’s revenue increased 16.6% to $2.22 billion from a year ago, but there was a quarterly loss of $349 million.
• Cisco Systems Inc. (CSCO), Equinix Inc. (EQIX) and Occidental Petroleum Corp (OXY) are among the top companies that will report quarterly earnings after the closing bell on Wednesday.

  Dow Jones FAQs

  The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.

  Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.

  Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.

  There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.