It was an upbeat day on Wall Street despite the dreary New York City weather. A number of large corporations from different industries reported soaring profits in the last quarter of 2022, when many market-watchers predicted that the U.S. economy was hurtling toward a recession.
Here are some of the biggest names to release their earnings:
General Motors
The Detroit automaker reported a 16 percent year-over-year jump in net income for the fourth quarter fueled by an uptick in factory production that pushed up U.S. sales. The sales raked in an adjusted $2.12 earnings per share, well above FactSet estimates of $1.69. In addition, the company made big investments in electric vehicles, including $650 million into developing a lithium mine in Nevada. GM's stock popped 9 percent after the bell Tuesday morning.
Exxon
Exxon Mobil brought in $12.75 billion in profits and $55.7 billion in net income, blowing past its previous record of $45.22 billion in 2008. The oil giant benefited from a combination of rising demand and tight supply as world energy markets tried to bounce back from the impact of the war in Ukraine. The price of oil ranged from $70 to $90 a barrel during the quarter. Over the same period, Exxon also completed the expansion of its Beaumont Refinery in Texas.
McDonald's
McDonald's reported that global same-store sales increased 12.6 percent in the last quarter with the help of Adult Happy Meals and limited-time promotions. Retiring the McRib also helped bring in customers looking for one last bite of the popular sandwich. The company pointed out that it increased sales despite raising prices, and that many customers traded down to cheaper items but kept patronizing the business. Earnings also beat Wall Street earnings by a small margin after CEO Chris Kempczinski said he expects inflationary pressures to continue.
Stocks were up after the closing bell as Wall Street continued to pin their hopes on rate cuts after last week's comments from the Fed.
Cheddar News' Need2Know is brought to you by Securitize, which helps unlock broader access to alternative investments in private businesses, funds, and other alternative assets. The private credit boom is here and the Hamilton Lane Senior Credit Opportunities Fund has tripled in assets under management in just six months from November 2022 through April this year. Visit Securitize.io to learn more.
Google has agreed to pay $700 million and make several other concessions to settle allegations that it had been stifling competition against its Android app store — the same issue that went to trial in another case that could result in even bigger changes.
Nicki Minaj just reached a milestone that no other woman in rap has reached.
Apple announced that starting this week, it will stop selling some versions of the Apple watch in the U.S.
Southwest Airlines will pay a $35 million fine as part of a $140 million settlement to resolve a federal investigation into a debacle in December 2022 when the airline canceled thousands of flights and stranded more than 2 million travelers over the holidays.
The House of Representatives recently passed a bill aimed at increasing transparency in healthcare.
If you have a flexible spending account, here's some short information for you so you don't leave money on the table.
With high healthcare costs, bills can quickly add up. In some cases, it is possible to negotiate your medical bills. Barak Richman, law professor at George Washington University, joined Cheddar News to discuss the easiest way to talk to medical debt companies about what's owed.
Millions of people have selected insurance plans for 2024 but sometimes navigating them can be tricky time consuming and expensive. Paula Pant, host of 'Afford Anything' podcast, joined Cheddar News to break down what's needed to know about their insurance plans.
