Dow, S&P 500, Nasdaq inch higher as earnings surge

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US stocks were mixed on Thursday, with major indexes hoping to build on the previous day’s gains 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) were all slightly above the flat line in early trading.

Markets found little relief in consumer inflation, which has raised questions about whether interest-rate cuts have gone too far this year. Stocks rose on Wednesday on the back of the data and higher earnings from major US lenders.

Dealers have it now. He raised the stakes The Federal Reserve will cut rates before July, reversing the pile-up triggered by a better-than-expected December jobs report.

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^ DJI ^IXIC ^GSPC

December retail sales rose 0.4%, compared to expectations of 0.6%. Monthly gains were down from a 0.7% increase in November. Weekly jobless claims rose to a better-than-expected 217,000, compared to last week’s upwardly revised 203,000.

Meanwhile, Bank of America’s ( BAC ) results showed that fourth-quarter profit more than doubled, as the bank benefited from the Wall Street deal’s reform and outperformed rivals. The shares were up slightly in early trading. Morgan Stanley ( MS ) shares also rose after posting a quarterly profit before the bell.

In other earnings, UnitedHealth’s fourth-quarter revenue fell less than expected, weighed down by weakness in its health insurance division. The stock slipped in early trading.

A strong sales outlook from Taiwan Semiconductor Manufacturing Co ( TSM, 2330.TW ) boosted optimism for demand for AI hardware this year. The major chip supplier to Nvidia ( NVDA ) and Apple ( AAPL ) posted a 57% net gain to hit quarterly records on Thursday. Shares of TSMC rose more than 5% after the earnings report, while Nvidia shares rose 1%.

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Stocks are mixed as earnings continue to pour in.

U.S. 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) rose 0.3%. The Dow Jones Industrial Average (^DJI) hovered near the flat line.

Investors were watching for a continuation of Thursday’s performance as stocks beat expectations for inflation and strong quarterly bank earnings.

Following Friday’s better-than-expected jobs report but Wednesday’s inflation publication, traders are assessing how much rate cuts the Federal Reserve will implement this year.

“They now forecast two 25bp cuts in June and December this year (previously three cuts in March, June and September), followed by another cut in June 2026,” Goldman Sachs analysts said in a recent note.

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December retail sales grow below expectations, November sales improve.

As Yahoo Finance’s Josh Shafer reports:

Retail sales rose faster than Wall Street expected in December amid questions about how quickly the Federal Reserve will cut interest rates.

Retail sales rose 0.4 percent in December. Economists had expected a 0.6% increase in spending, according to Bloomberg data. Meanwhile, retail sales in November improved to 0.8% from the preliminary reading, which showed an increase of 0.7% in the month. Census Bureau information.

Read more here.
Retail business is simplified on the Mag 7 business.

A nice chart by Wanda Research Group Mag 7 looking at the flows from the retail community.

You can see activity slow down in January under pressure from names like Nvidia.

I’d say it’s refreshing to see traders roll over the other 493 stocks in the S&P 500!
good morning. Here’s what’s happening today.
It was not sold in pre-market activity at Target.

Target ( TGT ) is off the results of a holiday sell-off this morning, and the stock is up in pre-market.

Not sure why it didn’t target me!

Sales were barely up, and the company reiterated its EPS outlook — 20 cents below the current sell-side consensus at the top end.

Bottom line: This is another quarter against Target, which sheds light on the continued market share losses at Walmart ( WMT ). Here’s what Walmart CEO Doug McMillon had to say when we accepted our 2024 Company of the Year award.

PS: I love Walmart. New blue logo A color that ties in with founder Sam Walton’s iconic trucker hat.