US stocks were mixed on Thursday, with the major indexes hoping to build on the previous day’s surge as investors assessed another round of big bank earnings and a fresh reading on retail sales.
The S&P 500 (^GSPC), the tech-heavy Nasdaq Composite (^IXIC), and the Dow Jones Industrial Average (^DJI) all meandered slightly above the flatline in early trading.
Markets are still enjoying some relief from a surprise easing in consumer inflation that prompted questions about whether the pricing out of interest-rate cuts this year had gone too far. Stocks ripped higher on Wednesday on the back of the data and stellar earnings from major US lenders.
Traders have now ramped up bets that the Federal Reserve lowers rates before July, reversing the pile-out that was sparked by the stronger-than-expected December jobs report.
DJI – Free Realtime Quote • USD
As of 9:45:06 AM EST. Market Open.
Retail sales for December grew by 0.4%, versus expectations of 0.6%. The monthly gain slowed 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.
Meanwhile, Bank of America (BAC) results showed fourth quarter profit more than doubled as the bank benefitted from a Wall Street dealmaking revival that has also boosted earnings at its rivals. Its shares were up slightly in early trading. Morgan Stanley’s (MS) stock also rose after it posted a surge in quarterly profit before the bell.
Elsewhere in earnings, UnitedHealth’s fourth quarter revenue fell short of estimates, dented by weakness in its health insurance unit. The stock slid in early trading.
An upbeat sales outlook from Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) boosted optimism for AI hardware demand this year. The main chip supplier to Nvidia (NVDA) and Apple (AAPL) on Thursday booked a 57% rise in net profit to hit a quarterly record. TSMC shares popped over 5% after its earnings report, while Nvidia stock added 1%.
LIVE 5 updates
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Stocks open mixed as more earnings continue to roll in
US stocks were mixed on Thursday following the S&P 500’s (^GSPC) best daily performance since November and strong quarterly bank earnings.
The broad based index rose more than 0.1% while the Nasdaq Composite (^IXIC) increased about 0.3%. The Dow Jones Industrial Average (^DJI) hovered near the flatline.
Investors were watching for a continuation of Thursday’s performance when stocks ripped higher on the heels of better than expected inflation data and strong quarterly bank earnings.
Traders have been assessing how many rate cuts the Federal Reserve will implement this year following a better than expected jobs report last Friday but a cooling inflation print on Wednesday.
Goldman Sachs analysts said in a recent note they “now forecast two 25bp cuts this year in June and December (vs. three cuts previously in March, June, and September) followed by another cut in June 2026.”
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As of 9:45:05 AM EST. Market Open.
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December retail sales grow less than expected, November sales revised higher
Yahoo Finance’s Josh Schafer reports:
Retail sales grew at a slower pace than Wall Street had expected in December as investors keep a close eye on the pace of economic growth amid questions over how quickly the Federal Reserve will cut interest rates.
Retail sales rose 0.4% in December. Economists had expected a 0.6% rise in spending, according to Bloomberg data. Meanwhile, retail sales in November were revised up to 0.8% from a prior reading that showed a 0.7% increase in the month, according to Census Bureau data.
Read more here.
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Retail lightens up on the Mag 7 trade
Good chart by the Vanda Research team looking at Mag 7 flows from the retail trading community.
You can see activity having slowed down in January with names like Nvidia under pressure.
Dare I say it’s refreshing to see traders nibble at the other 493 stocks in the S&P 500!
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Good morning. Here’s what’s happening today.
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Not sold on the pre-market move on Target
Target (TGT) dropped its holiday sales results this morning, and the stock is up in the pre-market.
Not sure why Target didn’t blow me away!
Sales barely grew and the company reiterated its EPS outlook — an outlook that at the top end is 20 cents below current sell-side consensus.
Bottom line: this is yet another quarter from Target that sheds light on its continued market share loss to Walmart (WMT). Here’s what Walmart CEO Doug McMillon told me when accepting our 2024 Company of the Year award.
PS: I like Walmart’s new blue logo color that ties back to founder Sam Walton’s iconic trucker hat.
