(Bloomberg) -- A batch of earnings from industry heavyweights drove stocks to the brink of all-time highs in a continuation of the rally fueled by the strength of Corporate America.
Equities extended their gains for the year, with the S&P 500 hovering near 6,100. Netflix Inc. surged 12% after closing 2024 with its biggest quarterly subscriber gain in history. United Airlines Holdings Inc., Travelers Cos. and Procter & Gamble Co. all climbed after strong results. Oracle Corp. soared 9.5% on a $100 billion joint venture with SoftBank Group Corp. and OpenAI, an effort unveiled with President Donald Trump aimed at speeding development of artificial intelligence.
“The market is off to a good start to President Trump’s second term,” said Matt Maley at Miller Tabak. “If this earnings season is a good one, it’s a rally that could have legs. However, it will take more than merely ‘beating expectations’ to fuel a further rally of significance.”
JP Morgan Chase & Co. Chief Executive Officer Jamie Dimon said there are signs that the US stock market is overheated.
“Asset prices are kind of inflated,” Dimon said in a CNBC interview Wednesday. “You need fairly good outcomes to justify those prices, and we’re all hoping for that.”
The S&P 500 rose 0.5%. The Nasdaq 100 climbed 1.1%. The Dow Jones Industrial Average added 0.2%. A Bloomberg gauge of the “Magnificent Seven” megacaps gained 1%. The Russell 2000 fell 0.1%.
The yield on 10-year Treasuries was little changed at 4.57%. The Bloomberg Dollar Spot Index was little changed.
Corporate Highlights:
- Netflix Inc. closed 2024 with its biggest quarterly subscriber gain in history, buoyed by its first major live sporting events and the return of Squid Game.
- United Airlines Holdings Inc. predicted first-quarter profit well ahead of Wall Street’s estimates as the carrier capitalizes on unusually strong demand for premium and international travel during the winter months.
- Johnson & Johnson notched higher-than-expected fourth-quarter earnings on strong sales of its cancer medicines that helped offset the fade of an older blockbuster.
- Procter & Gamble Co. organic sales surpassed estimates on higher volume, a change from earlier quarters where most of the company’s growth came from price hikes.
- Abbott Laboratories is forecasting lower-than-expected first-quarter earnings but full-year profit in line with Wall Street estimates as the health care company points to strong demand for its medical devices as a growth driver this year.
- Ally Financial Inc. fourth-quarter earnings surged as its net interest margin beat analysts’ estimates and expenses and provisions for bad debt declined.
- Venture Global Inc. slashed the marketed range for its initial public offering, lowering the market value it could fetch.
Key events this week:
- Eurozone consumer confidence, Thursday
- US jobless claims, Thursday
- Bank of Japan policy meeting, Friday
- Eurozone HCOB Manufacturing & Services PMI, Friday
- US University of Michigan consumer sentiment, existing home sales, S&P Global Manufacturing & Services PMI, Friday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.5% as of 9:32 a.m. New York time
- The Nasdaq 100 rose 1.1%
- The Dow Jones Industrial Average rose 0.2%
- The Stoxx Europe 600 rose 0.5%
- The MSCI World Index rose 0.5%
- Bloomberg Magnificent 7 Total Return Index rose 1%
- The Russell 2000 Index fell 0.1%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.1% to $1.0416
- The British pound fell 0.2% to $1.2331
- The Japanese yen fell 0.3% to 156.06 per dollar
Cryptocurrencies
- Bitcoin fell 2% to $104,651.36
- Ether fell 0.8% to $3,304.66
Bonds
- The yield on 10-year Treasuries was little changed at 4.57%
- Germany’s 10-year yield was little changed at 2.51%
- Britain’s 10-year yield advanced one basis point to 4.60%
Commodities
- West Texas Intermediate crude fell 0.2% to $75.69 a barrel
- Spot gold rose 0.3% to $2,754.17 an ounce
This story was produced with the assistance of Bloomberg Automation.
--With assistance from Cecile Gutscher, Sujata Rao, Robert Brand and Aya Wagatsuma.
©2025 Bloomberg L.P.