After ending the previous session mostly lower, stocks are likely to move back to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Stocks may benefit from a positive reaction to earnings news from big-name companies such as IBM Corp. (IBM), Meta Platforms (META) and Tesla (TSLA).
Shares of IBM are surging by 9.5 percent in pre-market trading after the tech giant reported fourth quarter earnings that exceeded analyst estimates.
Facebook parent Meta is also seeing notable pre-market strength after reporting fourth quarter results that beat estimates on both the top and bottom lines.
Shares of Tesla may also move to the upside even though the electric vehicle maker reported fourth quarter earnings that missed expectations.
On the other hand, shares of Microsoft (MSFT) are plunging by 4.5 percent in pre-market trading after the software giant reported better than expected fiscal second quarter results but provided disappointing revenue guidance for the current quarter.
In U.S. economic news, the Commerce Department released a report showing U.S. economic growth in the fourth quarter of 2024 fell short of economist estimates.
The report said gross domestic product shot up by 2.3 percent in the fourth quarter after surging by 3.1 percent in the third quarter. Economists had expected GDP to jump by 2.6 percent.
The Commerce Department said the GDP growth in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment.
Meanwhile, a separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended January 25th.
The Labor Department said initial jobless claims fell to 207,000, a decrease of 16,000 from the previous week’s unrevised level of 223,000. Economists had expected jobless claims to slip to 220,000.
Stocks moved mostly lower over the course of the trading day on Wednesday, partly offsetting the notable rebound seen during Tuesday’s session. The major averages climbed off their worst levels in late-day trading but still closed in negative territory.
The Nasdaq slid 101.26 points or 0.5 percent to 19,632.32, the S&P 500 fell 28.39 points or 0.5 percent to 6,039.31 and the Dow dipped 136.83 points or 0.3 percent to 44,713.52.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Thursday, with many markets still closed for Lunar New Year. Japan’s Nikkei 225 Index rose by 0.3 percent, while Australia’s S&P/ASX 200 Index climbed by 0.6 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 0.2 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both up by 0.6 percent.
In commodities trading, crude oil futures are slipping $0.14 to $72.48 a barrel after tumbling $1.15 to $72.62 a barrel on Wednesday. Meanwhile, after edging down $1.10 to $2,793.50 an ounce in the previous session, gold futures are surging $30.60 to $2,824.10 an ounce.
On the currency front, the U.S. dollar is trading at 154.09 yen versus the 155.22 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0416 compared to yesterday’s $1.0421.
Business News
U.S. Stocks May See Initial Strength On Positive Reaction To Earnings News
2025-01-30 13:52:51
