5 things to know before the stock market opens Tuesday

Here are the most important news items that investors need to start their trading day:

U.S. equities are about to finish up a strong January in spite of lingering concerns about a recession and the Federal Reserve’s rate-hiking strategy to stem inflation. Corporate earnings haven’t been too hot, either. Yet, there are also growing hopes that the economy is headed for a soft landing, both at home and abroad (more on that below). Meanwhile, the Fed begins its two-day policy-setting meeting Tuesday, and is expected to increase its benchmark rate by a quarter point Wednesday. The earnings cavalcade continues, as well, with McDonald’s and General Motors reporting before the bell, and Advanced Micro Devices after the bell.

Some good global economic news greeted U.S. markets Tuesday morning. Overnight, the International Monetary Fund boosted its growth forecast for the year to 2.9% from a previous outlook of 2.7%. “Economic growth proved surprisingly resilient in the third quarter of last year, with strong labor markets, robust household consumption and business investment, and better-than-expected adaptation to the energy crisis in Europe,” said IMF research director Pierre-Olivier Gourinchas. Indeed, the euro zone helped ease fears of a global recession Tuesday morning by posting surprise growth in the fourth quarter. Despite the good news, though, inflation and Russia’s war in Ukraine still pose risks to the world’s economy.

General Motors easily topped Wall Street’s expectations for its quarterly results. Earnings per share came in…