Shares of industrial and transportation companies rose after generally strong earnings from the sector.
General Motors shares rallied after the auto giant posted robust fourth-quarter profit growth, reflecting an easing of supply-chain issues.
Shares of Caterpillar fell as foreign-exchange translation weighed on its earnings, but the maker of machinery for mining and agricultural applications said higher prices for its goods offset rising materials costs.
One strategist said the earnings season was "better than feared" so far. Some industrial companies have "been proactive in taking action to protect their margins," said Eric Marshall, president of mutual-fund firm Hodges Capital.
There are instances "where input costs have come down, natural gas prices have come down, a lot of raw material costs come down, yet pricing has not," Mr. Marshall said.
Shares of Lennox International rose after the maker of heating, ventilation and air-conditioning equipment posted fourth-quarter earnings growth, helped by higher prices at its commercial operations.
Kirby Corp. shares rallied after the operator of freight barges posted earnings ahead of Wall Street targets, boosted by demand from petrochemical companies.
While there could still be an economic slowdown, "2023 is probably the most well-anticipated recession of my lifetime," said Mr. Marshall.
"The more people anticipated it, the longer the period of time they anticipated it, it may make the recession more shallow. People worked down inventory, were more careful with capital spending, and more careful hiring employees," Mr. Marshall said.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-31-23 1702ET
