Markets are showing mixed signals as Thursday’s trading day begins, with an array of important economic reports on the horizon, including the latest government data on retail sales, weekly unemployment benefits applications, and numerous corporate earnings announcements.
Futures for the S&P 500 experienced a slight increase of less than 0.1%, while the Dow Jones Industrial Average futures decreased by 0.2%. In contrast, futures for the Nasdaq saw a modest rise of 0.2%.
Bank of America announced on Thursday that its quarterly profit surged to $6.7 billion, marking a significant increase and contributing to a series of impressive financial reports from banks in the fourth quarter. The results exceeded Wall Street’s expectations for both sales and profits.
The financial institution generated more than $100 million in revenue during 2024, largely attributed to increased fees. Interestingly, its shares remained relatively stable in premarket trading.
Meanwhile, UnitedHealth Group’s shares fell by 3.7% due to its revenue not meeting Wall Street’s expectations. The health insurer faced challenges such as cuts in Medicare funding and a decline in Medicaid enrollment, which impacted its overall performance. This was the company’s first financial update following the alarming incident involving one of its executives being shot outside a hotel in New York City last month.
Taiwan Semiconductor Manufacturing Company also made headlines, reporting a 57% increase in profits for the last quarter. Being the largest semiconductor manufacturer globally, it has found itself at the center of a trade and technology dispute between the United States and China. The company’s results were bolstered by the growing demand for artificial intelligence, resulting in a 4.1% rise in its shares in after-hours trading.
Looking ahead, the government is set to release its retail sales report for December later this morning. Analysts predict a slight slowdown in sales, which are typically strong during December, due to the holiday shopping period. Consumer spending has been helping to sustain the U.S. economy, despite the persistent high prices and interest rates.
In addition, the Labor Department will provide insights into the weekly applications for unemployment benefits from last week. Recent inflation figures from the U.S., released Wednesday, offered a somewhat positive outlook, though few anticipate that this data will sway the Federal Reserve to decrease interest rates next month. Nonetheless, economists suggest that if additional data indicates a decrease in inflationary pressures, it could pave the way for potential rate cuts later in the year, possibly as early as March.
Wall Street has seen significant fluctuations recently as traders re-evaluate their predictions regarding the Fed’s actions on interest rates in 2025. A shift towards easing rates could enhance the U.S. economy and elevate investment prices, yet it could also further fuel inflation.
In Europe, market activity at midday showed France’s CAC 40 climbing by 2%, while Germany’s DAX rose by 0.3% and Britain’s FTSE 100 advanced by 0.6%. Meanwhile, Japan’s Nikkei 225 added 0.3% to conclude at 38,572.60. The Bank of Japan reported that wholesale prices increased by 3.8% year-over-year in December, intensifying speculation regarding a possible hike in interest rates during an upcoming monetary policy meeting.
In China, the Hang Seng Index in Hong Kong rose 1.2% to 19,522.89, but the Shanghai Composite Index increased by nearly 0.3% to 3,236.03. Meanwhile, Australia’s S&P/ASX 200 surged by 1.4%, reaching 8,327.00, and South Korea’s Kospi added 1.2%, reaching 2,527.49.
In terms of oil prices, benchmark U.S. crude dropped by 60 cents to settle at $78.11 per barrel, with Brent crude, the international benchmark, experiencing a decline of 64 cents to $81.39 per barrel. The value of the U.S. dollar fell to 156.17 Japanese yen from a previous value of 156.47 yen, while the euro traded at $1.0276, down slightly from $1.0289.
