Industrials Up on Rate, Earnings Optimism -- Industrials Roundup

Shares of industrial and transportation companies rallied on optimism about the outlook for interest rates and earnings growth.

Federal Reserve governor Christopher Waller, who had advocated rapid rate increases last year, said the economy and the outlook for inflation were evolving in a way that would allow the central bank to continue slowing the pace of rate rises.

"Now you have an overanalysis of every comment by a Fed speaker," said Quincy Krosby, chief global strategist at brokerage LPL Financial.

"It's almost like market conspiracy theories of what the Fed is going to do." Comments such as Mr. Waller's likely "quelled concerns that the Fed may come in and surprise the market with a 50 basis-point hike Feb. 1, explaining inflation is still too sticky," Ms. Quincy said.

General Electric rose ahead of the industrial conglomerate's fourth-quarter earnings report next week.

General Motors and LG Energy Solutions scrapped plans for a fourth jointly owned U.S. battery factory.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

01-20-23 1655ET