S&P 500 marks closing record as corporate earnings roll in; Medicare rates hit insurers

Market Overview - Technology stocks extended gains, with major contributions from Microsoft, Amazon, Nvidia, Apple, and Broadcom, leading to the Nasdaq reaching its highest level since late October and the S&P 500 nearing the 7,000 milestone, marking its fourth record closing high in 2026 [1][15] - The Dow Jones Industrial Average fell by 408.99 points, or 0.83%, closing at 49,003.41, while the S&P 500 gained 28.37 points, or 0.41%, to 6,978.60, and the Nasdaq Composite rose by 215.74 points, or 0.91%, to 23,817.10 [6][15] Earnings Reports - 102 S&P 500 companies are set to report earnings this week, with 79.7% of the 64 that had reported by Friday exceeding analyst expectations [8][15] - General Motors saw an 8.7% increase in shares after reporting higher fourth-quarter core profit [15] - Boeing reported a fourth-quarter profit due to a unit sale but faced larger-than-expected losses in its two biggest divisions, leading to a 1.6% decline in shares [9][15] - American Airlines shares closed down 7% due to expected impacts from a winter storm on first-quarter results, despite a positive 2026 profit forecast [10][15] - JetBlue shares fell 6.9% after reporting a wider-than-expected quarterly loss attributed to bad weather and a government shutdown [10][15] Sector Performance - The technology sector led gains among the S&P 500's 11 major industry sectors, rising by 1.4%, with Corning being the biggest gainer, rallying 15.6% after signing a deal with Meta worth up to $6 billion for fiber-optic cables in AI data centers [7][15] Consumer Confidence and Economic Indicators - U.S. consumer confidence unexpectedly declined in January, reaching its lowest level since 2014, but this did not significantly impact the stock market [4][15] - A recent decline in the U.S. dollar, dropping over 1% on Tuesday, is viewed positively for U.S. equities as it benefits exports, which is expected to enhance S&P earnings going forward [5][6][15] Federal Reserve Watch - Investors are awaiting a policy announcement from the U.S. Federal Reserve, with expectations of unchanged interest rates, while focusing on guidance regarding future rates and economic commentary [11][15] Market Breadth - Advancing issues outnumbered decliners by a 1.61-to-1 ratio on the NYSE, with 693 new highs and 95 new lows, while on the Nasdaq, 2,725 stocks rose against 2,056 that fell, resulting in a 1.33-to-1 ratio [12][15]