Stock Market Today: Futures Edge Higher Amid Tech Volatility and Earnings Season Kickoff
Market Overview: January 17, 2025
As of Friday, January 17, 2025, U.S. stock futures are trading modestly higher, signaling a potential rebound after a mixed session on Thursday. Investors are closely watching the market as it enters the “Trump 2.0 era” with the upcoming inauguration of President-elect Donald Trump on January 20. The stock market today is poised for an interesting day, with futures on the Nasdaq 100, Dow Jones Industrial Average, and S&P 500 all up by approximately 0.18% in pre-market trading.
Why is the Market Up Today?
The slight uptick in futures can be attributed to several factors:
1. Positive earnings outlook: Analysts project an 11.9% year-over-year growth in S&P 500 earnings per share for Q4 2024, potentially marking the highest growth rate since Q4 2021.
2. Tech sector strength: Despite recent volatility, tech stocks remain the core driver of S&P 500 EPS growth, with large tech companies expected to see a 24% increase in EPS for Q4 2024.
3. Economic data: Recent reports on weekly jobless claims and monthly retail sales have largely met expectations, providing some stability to market sentiment.
4. Interest rate expectations: Comments from Fed Governor Christopher Waller about potential quicker rate cuts have influenced market optimism.
Current Market Indexes and Performance
As of the latest available data:
– Dow Jones Industrial Average: 43,153.13 (previous close, down 0.16%)
– S&P 500: 5,937.34 (previous close, down 0.21%)
– Nasdaq Composite: 19,338.29 (previous close, down 0.89%)
Despite the recent pullback, all three major indices are still on track for positive weekly returns.
Major Stock News and Market Movers
1. Apple (AAPL): Shares declined 4% following reports of weak iPhone sales in China and losing its position as the largest smartphone seller in the country.
2. Tesla (TSLA): The electric vehicle maker saw a 3.4% drop in its stock price.
3. Nvidia (NVDA): Along with other major tech stocks, Nvidia experienced a decline in the previous session.
4. UnitedHealth Group (UNH): Shares plunged 6%, making it the leading decliner in both the S&P 500 and Dow after disappointing quarterly results.
5. Morgan Stanley (MS): The financial giant’s shares rose 4% to an all-time high after beating Q4 earnings expectations.
6. Semiconductor stocks: Companies like KLA Corp (KLAC), Lam Research (LRCX), and Applied Materials (AMAT) saw gains of over 4% following positive earnings and outlook from Taiwan Semiconductor Manufacturing Co. (TSM).
Upcoming Market Events
1. Earnings season kickoff: Netflix is set to release its earnings report on January 21, marking the beginning of the tech earnings season.
2. Trump inauguration: The market is anticipating potential policy shifts as Donald Trump prepares to take office on January 20.
3. Economic data releases: Investors will be watching for Building Permits and Housing Starts data for December.
4. Earnings reports: Companies such as Schlumberger (SLB), TFC Financial (TFC), and State Street (STT) are scheduled to release their quarterly numbers.
Market Outlook and Investor Sentiment
As the market navigates through earnings season and political transitions, investor sentiment remains cautiously optimistic. The tech sector continues to be a focal point, with market participants looking for signs of when massive investments in areas like AI will start to yield returns.
The 10-year Treasury yield has eased to 4.615%, reflecting changing expectations for interest rates. Meanwhile, Bitcoin has been hovering near the $100,000 mark, indicating strong performance in the cryptocurrency market.
In conclusion, the stock market today presents a mixed picture with potential for growth amid ongoing volatility. Investors are advised to keep a close eye on earnings reports, economic indicators, and policy developments as the market enters a new political era under the Trump administration.
