By Francesca Fontana

The Score is a weekly review of the biggest stock moves and the news that drove them.

Goldman Sachs

A rebound on Wall Street fueled surging profits at banking giants last quarter.

On Wednesday, Goldman Sachs, JPMorgan, Wells Fargo and Citigroup all posted profits that were better than expected. Similar readings came from others during the week, such as Wells Fargo, Morgan Stanley, and Bank of America.

The banks benefited as big corporate clients grew optimistic about the economy and the incoming Trump administration, spurring a return to dealmaking, fundraising and trading.

Goldman shares gained 6% on Wednesday, while Wells Fargo rose 6.7%, Citi advanced 6.5%, and JPMorgan stock gained 2%.

On Thursday, Morgan Stanley shares rose 4% and Bank of America shares ended 1% lower.

Nvidia

The U.S. tightened its grip on AI chips, casting some gloom over semiconductor giant Nvidia and others.

The Biden administration on Monday imposed caps on how many advanced AI chips can be exported to certain countries, a final push in a yearslong effort to use export controls to stem China's advances in chip-making and AI.

Nvidia shares fell 2% Monday, along with peers including Taiwan Semiconductor Manufacturing and Micron Technology.

Meanwhile, a bright spot in chip-making came Thursday, when TSMC reported a record quarter driven by AI demand. The world's largest contract chip maker -- whose customers include Nvidia and Apple -- said it expected growth to continue.

U.S.-traded shares of TSMC rose 5% Thursday.

Moderna

Some drugmaker stocks were under the weather during the week.

Moderna shares took a nosedive after its latest earnings report. The biotech company's 2025 revenue guidance lagged behind Wall Street's expectations. The vaccine maker slashed its forecast as sales of its vaccines against Covid-19 and respiratory syncytial virus continue to be sluggish.

Moderna shares plunged 17% Monday.

On Tuesday, Eli Lilly warned that sales of its popular diabetes and anti-obesity drugs Mounjaro and Zepbound were growing more slowly than expected, citing lower-than-expected inventory of the drugs.

Lilly shares sold off 6.6% Tuesday, and US-traded shares of rival Novo Nordisk dropped 4.1% Tuesday.

U.S. Steel

Steel producers Cleveland-Cliffs and Nucor are in discussions about a potential bid for U.S. Steel.

Cleveland-Cliffs aims to purchase all of U.S. Steel with cash, and then sell Arkansas mill Big River Steel to Nucor, The Wall Street Journal reported Monday. The possible bid comes after the government extended a deadline for the steelmaker to drop its planned deal with Japan's Nippon Steel.

President Biden earlier this month blocked U.S. Steel's planned transaction to sell itself to Nippon Steel over concerns about foreign ownership and national security. President-elect Donald Trump has also opposed the deal publicly.

U.S. Steel stock jumped 6.1% Monday. Cleveland-Cliffs and Nucor stock also rallied, gaining 6% and 4%, respectively.

Macy's

Not all retailers had a jolly holiday season.

Shoppers were busy during November and December, when core retail sales increased 4% from 2023, per the Commerce Department.

But some companies saw less demand than expected. Department store chain Macy's warned of weaker holiday sales, despite recent efforts to boost revenue. The company has been closing some stores, and hiring more salespeople and making investments at 50 pilot stores.

Macy's shares tumbled 8.1% Monday.

Strong holiday sales weren't enough to give some stocks a boost, either. After years of sluggish sales, big-box giant Target reported better-than-expected holiday sales. Still, its shares slipped 1% Thursday.

UnitedHealth

UnitedHealth on Thursday delivered its first earnings report since the killing of executive Brian Thompson last month.

The healthcare bellwether posted better-than expected quarterly profit, but reported weaker-than-expected quarterly revenue and signaled higher medical costs.

Thompson was CEO of UnitedHealthcare, its insurance unit and the nation's largest insurer. His death unleashed an online backlash against insurers and prompted fear among industry executives for their physical safety.

During its earnings call, UnitedHealth tried to reassure investors about its financial performance while contending with negative scrutiny. Chief Executive Andrew Witty praised Thompson's legacy, defended his company's role in the health system, and said the main drivers of healthcare costs came from drug companies and hospital operators.

UnitedHealth shares slid 6% Thursday.

Our weekly markets news roundup is now part of the WSJ's What's News podcast. Host Francesca Fontana discusses the biggest stock moves of the week and the news that drove them. Check out What's News in Markets at wsj.com/podcasts or wherever you listen.

Write to Francesca Fontana at francesca.fontana@wsj.com.

(END) Dow Jones Newswires

January 17, 2025 17:13 ET (22:13 GMT)

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