US Market starts 2022 with gains

The US stocks were mostly higher on the first trading session of the new year, Monday, 03 January 2022, with the Dow, the Nasdaq, and the S&P 500 all settling strongly above the unchanged line, amid optimism the economy would stay on the recovery track.

At the close of trade, the Dow Jones Industrial Average index advanced 246.76 points, or 0.68%, to 36,585.06. The S&P500 index was up 30.38 points, or 0.64%, to 4,796.56. The tech-heavy Nasdaq Composite Index added 187.83 points, or 1.2%, to 15,832.80.

Total shares volume turnover on U.S. exchanges stood at 8.62 billion shares. Advancing stocks outnumbered declining ones on the NYSE exchange by 1947 to 1465 and 113 closed unchanged. In the NASDAQ, 3327 issues advanced, 1467 issues declined, and 183 issues unchanged.

Total 5 of 11 major S&P 500 sector indexes advanced, with top performing issues were energy (up 3.1%), consumer discretionary (up 2.76%), financials (up 1.24%), and information technology (up 1.02%), while bottom performing issues included materials (down 1.37%), healthcare (down 0.98%), real estate (down 0.96%), and utilities (down 0.94%).

Apple Inc shares gained more than 2.5%, hitting an all-time high and became the first company to hit $3 trillion market capitalization.

Shares of Tesla Inc climbed 13.5% thanks to the company's quarterly deliveries beating estimates. Tesla announced it delivered 308,600 vehicles in Q4, beating estimates of 263,026.

ECONOMIC NEWS: US Manufacturing Production Growth Remains Constrained By Shortages In December- US seasonally adjusted IHS Markit US Manufacturing Purchasing Managers' Index (PMI) posted 57.7 in December, down from 58.3 in November but broadly in line with the earlier released 'flash' estimate of 57.8. The improvement in the health of the US manufacturing sector was the slowest in 2021 amid subdued output and new order growth. Ongoing efforts to build safety stocks and a severe deterioration in vendor performance, ordinarily signs of improving conditions, continued to lift the headline PMI, however. The rate of output growth picked up slightly to the fastest for three months, but was much slower than those seen earlier in the year. Manufacturers noted further constraints on production due to severe material shortages and input delivery delays.

December PMI data from IHS Markit indicated a further subdued upturn in production across the US manufacturing sector. With the exception of October and November, the pace of output growth was the slowest since October 2020. At the same time, companies recorded the softest rise in new orders for a year and a further substantial deterioration in vendor performance amid severe material shortages. Longer lead times for inputs also led to another sharp increase in backlogs of work, albeit the slowest for ten months. Meanwhile, cost burdens continued to increase markedly despite the rate of inflation softening to the slowest since June. Efforts to pass-through greater costs to clients were hampered by softer demand conditions, as charges rose at the slowest rate since April.

Among Indian ADR, INFOSYS fell 0.2% to $25.26, Dr Reddys Labs fell 0.24% to $65.25, Wipro fell 0.1% to $9.75, WNS Holdings fell 0.03% to $88.19, and Azure Power Global sank 0.17% to $18.12. Tata Motors added 4.3% to $313.48, HDFC Bank added 2.2% to $66.52, and ICICI Bank added 2.83% to $20.35.

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