Stocks on the Verge of Record As Earnings Enter: Market Roll

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(Bloomberg) — Earnings from industrial heavyweights lifted stocks to all-time highs as a continuation of a rally fueled by the strength of corporate America.

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Stocks extended their gains for the year, with the S&P 500 hovering around 6,100. Netflix Inc. rose 12% after the close of 2024. United Airlines Holdings Inc., Travelers Cos. and Procter & Gamble Co. All are out after strong results. Oracle Corp. rose 9.5 percent on a $100 billion joint venture with SoftBank Group Corp. and OpenAI, an effort with President Donald Trump aimed at accelerating artificial intelligence.

“The market is off to a good start to President Trump’s second term,” said Matt Malley at Miller Tabak. “If this earnings season goes well, it’s a rally that could have legs. However, it takes more than just ‘hitting expectations’ for a more collaborative meeting.

Jamie Dimon, CEO of JPMorgan Chase & Co., said there are signs that the U.S. stock market is overheating.

“Property values are inflated,” Dimon said in a CNBC interview on Wednesday. “You need a good result to justify those prices, and we’re all hoping for that.”

The S&P 500 rose 0.5%. The Nasdaq 100 rose 1.1%. The Dow Jones Industrial Average rose 0.2 percent. Bloomberg’s benchmark “Magnificent Seven” megacaps gained 1%. The Russell 2000 fell 0.1%.

The yield on the 10-year Treasury note was little changed at 4.57%. The Bloomberg Dollar Spot Index was little changed.

Corporate Highlights:

Netflix Inc closed out 2024 with its biggest quarterly subscriber gain in history, its first major live sporting events and the return of the Squid Game.
United Airlines Holdings Inc. forecast first-quarter profit ahead of Wall Street estimates as the carrier capitalized on unusually strong demand for premium and international travel during the winter months.
Johnson & Johnson posted better-than-expected fourth-quarter earnings on strong sales of its cancer drugs.
Procter & Gamble Co. beat estimates for higher organic sales, a reversal from previous quarters as most of the company’s growth came from price increases.
Abbott Laboratories reported lower-than-expected first-quarter revenue but full-year profit in line with Wall Street estimates, with the healthcare company forecasting strong demand for its medical devices as a growth driver this year.
Ally Financial Inc.’s net interest margin beat analysts’ estimates and expenses and reduced provisions for bad debt. Fourth quarter earnings are up.
Venture Global Inc. has reduced its market cap for its initial public offering, reducing its potential market value.