The S&P 500 futures are up by 1 point, and the Nasdaq 100 futures have increased by 34 points, showing a rise of 0.2%. Meanwhile, the Dow Jones Industrial Average futures have dropped 107 points, marking a decrease of 0.2%.
Futures for S&P 500 and Nasdaq 100 are seeing an upward trend, following the positive momentum from yesterday's CPI-induced rally. On the other hand, Dow futures are down due to an earnings-related decline in UnitedHealth (UNH, Financial) before the market opens.
In today's earnings news, there's a mixed response from the market. Bank of America (BAC, Financial) and US Bancorp (USB, Financial) are facing declines after releasing their results, whereas Taiwan Semiconductor Manufacturing (TSM, Financial) and Target (TGT, Financial) are enjoying pre-open gains following strong report outcomes.
Treasury yields have risen slightly, which is dampening excitement in the stock market. The 10-year yield has climbed by three basis points to 4.68%, and the 2-year yield is up by four basis points to 4.30%.
Today, investors are looking forward to more market-moving data with the release of December Retail Sales and weekly jobless claims at 8:30 Eastern Time.
Taiwan Semiconductor Manufacturing Company (TSM, Financial) saw its stock rise by about 5% in premarket trading following its impressive fourth-quarter results. The company reported a 39% year-over-year revenue increase and a 57% surge in net profit, driven by strong demand for AI hardware. TSM anticipates first-quarter revenue to range between $25 billion and $25.8 billion, surpassing the consensus estimate of $24.75 billion. Despite potential challenges from new U.S. chip curbs, TSM's leadership remains optimistic about managing these restrictions.
UnitedHealth Group (UNH, Financial) experienced a rare quarterly revenue miss in its fourth-quarter results, leading to a nearly 5% drop in its stock price. Despite this, the company's earnings exceeded expectations. The announcement comes amid heightened scrutiny of the insurance industry following the recent tragic death of UNH's insurance unit CEO. The broader healthcare sector, including competitors like Humana (HUM, Financial) and CVS Health (CVS, Financial), saw similar declines.
Symbotic (SYM, Financial) announced its acquisition of Walmart's (WMT, Financial) Advanced Systems and Robotics business for $200 million, with potential additional payments of up to $350 million. This deal could boost Symbotic's backlog by over $5 billion and expand its market reach by more than $300 billion in the U.S. The acquisition strengthens the partnership between Symbotic and Walmart, aiming to enhance automated supply chain solutions.
United Parcel Service (UPS, Financial) shares rose after Bank of America upgraded the stock to a Buy rating. The upgrade reflects optimism about the end of the freight recession and the benefits of UPS's dynamic pricing model and cost initiatives. The firm expects UPS to outperform fourth-quarter EPS expectations and provide favorable guidance, marking a potential growth phase for the shipping market.
Bank of America (BAC, Financial) reported robust fourth-quarter earnings, driven by increased profits from its consumer banking and wealth management segments. The bank issued strong guidance for 2025, with expectations of rising net interest income and operating leverage. BAC's positive outlook is supported by broad revenue growth across deposits and loans, setting a promising stage for the upcoming year.
DigitalOcean (DOCN, Financial) gained attention as Morgan Stanley upgraded the cloud service provider, highlighting its potential in AI and machine learning. The upgrade, which pushed DOCN shares up by 4.5% in premarket trading, reflects the company's shift towards catering to larger customers and improving its product capabilities without losing focus on its developer community.
Initial jobless claims for the week ended January 11 rose by 14,000 to 217,000, slightly above the consensus estimate. The four-week moving average decreased, indicating a stable labor market. Continuing claims were lower than expected, suggesting resilience in employment levels despite the increase in initial claims.
U.S. Bancorp (USB, Financial) saw its stock decline by 2.8% in premarket trading, despite posting fourth-quarter earnings that exceeded estimates. The bank's guidance for 2025 indicates modest revenue growth and stable net interest income. USB's focus on operational efficiency and positive leverage is expected to support its financial performance moving forward.
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