Market Momentum Shifts as Earnings Season Unfolds
US stocks experienced a mixed day on Thursday, with investors digesting a slew of earnings reports from tech giants and awaiting Apple’s highly anticipated quarterly update. The S&P 500 (^GSPC) gained 0.5%, while the Dow Jones Industrial Average (^DJI) rose nearly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) was up nearly 0.3%.
Tech Titans Report Mixed Results
Tesla’s (TSLA) stock ticked higher despite an earnings miss, as investors took on trust its vow to return to growth in 2025. Meanwhile, Meta’s (META) quarterly earnings beat helped lift its shares, but Microsoft stock slumped, down 6%, after its cloud revenue fell short.
Apple’s Earnings in Focus
Investors will scrutinize Apple’s (AAPL) quarterly update for signs its iPhone sales are doing better than feared. The company reported earnings per share of $2.40 on revenue of $124.3 billion, beating expectations on the top and bottom lines but falling short on iPhone revenue.
Economic Data and Interest Rates
The Bureau of Economic Analysis’s advance estimate of fourth-quarter gross domestic product (GDP) showed the US economy grew at an annualized pace of 2.3%, below the 2.6% expected by economists surveyed by Bloomberg. Federal Reserve Chair Jerome Powell admitted the economic outlook for 2025 is likely more uncertain than normal, citing significant policy shifts in areas such as tariffs, immigration, fiscal policy, and regulatory policy.
Other Market Movers
Comcast (CMCSA) stock fell over 10% early Thursday after the company reported a bigger-than-expected drop in broadband customers in the fourth quarter and failed to add more subscribers to its Peacock streaming service. UPS’s (UPS) announcement that it will cut back on deliveries for its largest customer sent its stock tumbling as much as 15%. Bitcoin (BTC-USD) rose to hover near $106,000 per token on Thursday, driven by Fed Reserve Chair Jerome Powell’s comments related to crypto and banks.
American Airlines CEO Expresses Condolences
American Airlines (AAL) CEO Robert Isom expressed condolences following the collision between an American passenger jet and a US army helicopter on Wednesday night, resulting in no survivors expected.
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