Markets Poised for a Winning Week
As the final day of trading during the Biden presidency approaches, Wall Street is gearing up for a strong finish. Futures for the S&P 500 and Dow Jones Industrial Average are on the rise, with gains of 0.6% and 0.5%, respectively. If these gains hold, it would mark the best week for U.S. markets since early November.
Earnings Reports: A Mixed Bag
JB Hunt’s shares took a hit, plummeting 10% after the transport company missed Wall Street’s fourth-quarter profit targets. The company cited declining revenues and expects margins to shrink again in the first quarter of 2025 due to rising insurance premiums and labor costs. On the other hand, Qorvo’s shares soared 7% after activist investor Starboard Value took a 7.7% stake in the company, pushing for changes to improve profits and share price.
Regional Banks Under Scrutiny
A slew of regional banks released mixed earnings reports on Friday, following blowout reports from the nation’s bigger banks earlier in the week. Smaller regional banks have been under intense scrutiny since the 2023 collapse of Silicon Valley Bank, Signature, and First Republic. Another batch of regional bank earnings is expected next week.
Global Markets: A Tale of Two Regions
European shares rose on Friday, buoyed by a mixed session in Asia. China reported a 5% annual growth rate last year, meeting the government’s target but slowing from the previous year. Strong exports and policies aimed at boosting consumer spending and investment drove a manufacturing boom, with a nearly 6% jump from a year earlier. However, economists forecast a further slowing of growth this year and beyond, amid President-elect Donald Trump’s threats to raise U.S. tariffs on Chinese goods.
Asian Markets: A Mixed Performance
Hong Kong’s Hang Seng index rose 0.3% to 19,584.06, while the Shanghai Composite index added 0.2% to 3,241.82. In Tokyo, the Nikkei 225 index lost 0.3% to 38,451.46, as shares in gaming giant Nintendo dropped 4.3% due to investor disappointment with the company’s newest console. South Korea’s Kospi shed 0.2% to 2,523.55, while Australia’s S&P/ASX 200 edged 0.2% lower to 8,310.40. Taiwan’s Taiex gained 0.5% after computer chip maker Taiwan Semiconductor Manufacturing Corp. reported a 57% profit jump in the last quarter.
Commodities and Currencies
U.S. benchmark crude oil lost 57 cents to $77.28 per barrel, while Brent crude gave back 63 cents, trading at $80.66 per barrel. The U.S. dollar rose to 155.57 Japanese yen from 155.16 yen late Thursday, and the euro was at $1.0288, down from $1.0301.
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