Apple and Nvidia both fell on Friday for their third negative session in four. Every weekday afternoon, get a snapshot of global markets, along with key company, economic, and world news of the day. Get the latest updates on US markets, world markets, stock quotes, crypto, commodities and currencies. Almost half of all Main Street investors responding to quebex a weekly survey from the American Association of Individual Investors are bearish on the outlook for stocks over the next six months, the largest number since November 2023. Pessimism rose to 47.3% in the survey out Thursday, from 42.9% last week and the most since 50.3% in late 2023.
Stocks are little changed Friday, but end the week higher
« The primary driver of the upward revision to our 2025 EPS estimate is greater margin expansion, » Kostin said. « The macro backdrop remains conducive to modest margin expansion, with prices charged outpacing input cost growth. » Crypto markets, though, continued to get a boost after Elon Musk, a close ally of Trump, was appointed as co-head of the Department of Government Efficiency, or « DOGE. » President Trump’s announcement that he will unveil retaliatory tariffs on several trading partners next week likely did little to ease these worries.
Friday’s scheduled release of January U.S. retail sales data will show whether consumers will exceed spending expectations after December’s increase came in lower than expected. Wednesday’s scheduled release of CPI for January comes as price pressures have pointed higher in recent months, heightening inflation worries among Fed officials. Market watchers are also expected to get updated inflation readings for wholesale trade, along with import and export pricing data.
« Long-term performance of these alternatives reflects the fact that the strength of the US economy and the earnings and innovative capacity of US corporates can be captured outside of large-cap and capitalization-weighted indices. » Investment trading app Robinhood’s expected earnings come after Morgan Stanley upgraded its rating and raised the stock’s price target in November. Investors are also watching the expected Thursday report from crypto exchange Coinbase. Tech, finance, pharmaceutical, and consumer companies highlight this week’s corporate earnings calendar.
Moderna falls on disappointing earnings
- Markets see an 82% chance that the central bank will trim interest rates another quarter-point next month, up from 59% on Tuesday, according to the CME FedWatch tool.
- Friday’s scheduled release of January U.S. retail sales data will show whether consumers will exceed spending expectations after December’s increase came in lower than expected.
- Only 28.4% of individual investors responding to the survey described themselves as bullish, down from 33.3% last week but only the lowest reading in a month.
- But CVS Health (CVS) stock got a boost as investors welcomed a smaller drop in quarterly profit than expected.
- UBS’s head of US equities David Lefkowitz said « healthy » earnings growth would pave the way for further stock gains.
AppLovin is far and away the top gainer in the Nasdaq-100, with shares up more than 700%. MicroStrategy is the second-best performer, up more than 370% amid the rise in cryptocurrencies, while Palantir Technologies has surged nearly 350%. It has been a strong year for the S&P 500 — and https://www.forex-reviews.org/ some stocks are more to thank than others. Bank stocks in particular were one group that surged after the election, with JPMorgan and Goldman Sachs closing up about 41% and 48%, respectively, year to date. Shares of Tesla, whose CEO Elon Musk is a close ally of Trump, finished the year up more than 62%.
Other stocks on the move
DoorDash’s scheduled report comes after the delivery service recently announced a partnership with Home Depot. Coca-Cola’s expected report on Tuesday comes as the drinks maker’s unit case volumes decreased in the prior quarter as Chief Executive Officer (CEO) James Quincey warned about “near-term challenges” for the company. Goldman also sees stocks struggling relative to other assets over the next decade.
Contribution of ‘Magnificent 7’ to earnings growth is ‘diminishing,’ JPMorgan says
Hong Kong’s Hang Seng index traded up 3.48% in its final hour, extending its gains from the previous session. Asia-Pacific markets were mixed Friday after Wall Street rose overnight as President Donald Trump signed a reciprocal tariffs plan, but did not enact the levies immediately. The company’s fourth-quarter revenue of $966 million beat an LSEG estimate of $942.8 million. However, Moderna lost $2.91 per share during the period, marking a steeper loss than the $2.68 per share analysts had penciled in. In addition, Apple will integrate Alibaba’s AI into its iPhones in China, Alibaba Chair Joe Tsai confirmed Thursday.
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Berkshire first bought the tech stock in 2013 and hasn’t adjusted the stake in years. Verisign has had a mediocre year with its stock flat in 2024, significantly underperforming the tech sector. Through Monday’s close, there have been 57 record closes for the S&P in 2024, 47 for the Dow and 38 for the Nasdaq Composite. Wall Street might not close 2024 exactly at record highs, but there have been plenty of milestones throughout the year.
- « While still a meaningful driver of U.S. earnings growth, the contribution of Mag-7 is diminishing, with some of the group having underwhelmed this quarter, » analyst Mislav Matejka wrote.
- The main indexes opened to modest gains after the labor market update but turned tail following the release of the University of Michigan’s Consumer Sentiment Index.
- According to CME Group’s FedWatch tool, futures traders are now pricing in a 92% chance the central bank will not cut rates at its next meeting in March, up from 84% one day ago.
- Wall Street analysts aren’t buying President Donald Trump’s idea for a massive cut in defense spending.
- Traders also shrugged off data released Friday that reflected a 0.9% slump in retail sales for January, worse than the Dow Jones estimate for a 0.2% decline.
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- The PCE price index, which is due later this month, is the Federal Reserve’s preferred inflation gauge.
Palantir, Nvidia among top-performing S&P 500 stocks this year
The U.S. bond market has wrapped up its year, with the 10-year Treasury yield moving slightly higher on the final day of trading to 4.57%. Investors were hoping for a Santa Claus rally, which occurs when the market rises during each of the five final trading days of a calendar year and the first two trading days of January. Best cryptocurrencies to invest in 2020 Instead, the S&P 500 ended the year with four-straight down days for the first time since 1966.
Markets see an 82% chance that the central bank will trim interest rates another quarter-point next month, up from 59% on Tuesday, according to the CME FedWatch tool. Pinterest (PINS) stock surged 19.1% after the visual search and discovery platform reported revenue above $1 billion for the first time ever in its fourth quarter. Adams adds that the report will do little to change the Fed’s plans to hold interest rates steady in the near term and the market seems to agree. According to CME Group’s FedWatch tool, futures traders are now pricing in a 92% chance the central bank will not cut rates at its next meeting in March, up from 84% one day ago. Stocks opened higher Friday following the January jobs report but swung lower after the latest consumer sentiment data showed inflation worries are rising. President Donald Trump’s promises for retaliatory tariffs only elevated investors’ anxiety.
