Market Momentum Builds as Earnings Season Heats Up
US stock futures are mixed, with the S&P 500 poised to extend its gains from the previous day’s surge. Investors are digesting a fresh batch of big bank earnings and retail sales data, which could impact the Federal Reserve’s interest rate decisions.
Earnings Galore: Banks and Tech Lead the Way
Bank of America’s fourth-quarter profit more than doubled, driven by a Wall Street dealmaking revival. Its shares are up slightly in pre-market trading. Morgan Stanley’s stock also rose after posting a surge in quarterly profit. Meanwhile, Taiwan Semiconductor Manufacturing Co.’s upbeat sales outlook boosted optimism for AI hardware demand this year, sending its shares up over 5% in pre-market trading.
Retail Sales: A Mixed Bag
December retail sales rose 0.4% from the prior month, missing expectations of 0.6%. The monthly gain showed a slowdown from November’s 0.7% increase. Weekly jobless claims rose more than expected to 217,000, versus the prior week’s upwardly revised 203,000.
UnitedHealth Disappoints, Nvidia Shines
UnitedHealth’s fourth-quarter revenue fell short of estimates, weighed down by weakness in its health insurance unit. The stock slid in pre-market trading. On the other hand, Nvidia’s stock added nearly 2% after Taiwan Semiconductor’s earnings report.
Economic Data and Earnings to Watch
Today’s economic data includes retail sales, import price index, initial jobless claims, and NAHB housing market index. Earnings reports are due from Bank of America, J.B. Hunt, Morgan Stanley, PNC, Taiwan Semiconductor, UnitedHealth Group, and U.S. Bancorp.
Overnight News You May Have Missed
- Bank of America profit soars on Wall Street revival
- TSMC’s upbeat outlook fuels hopes for 2025 AI spending
- Morgan Stanley profit jumps on rise in dealmaking, stock sale
- BP to eliminate 5% of workforce to cut costs
- UnitedHealth Q4 revenue falls short as insurance unit struggles
- Investors seek $5 billion for basketball league to rival NBA
- Target raises its holiday sales forecast
Target’s Holiday Sales: A Mixed Bag
Target dropped its holiday sales results, and the stock is up in the pre-market. However, sales barely grew, and the company reiterated its EPS outlook, which is 20 cents below current sell-side consensus. This quarter’s results highlight Target’s continued market share loss to Walmart.
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