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U.S. equity futures extended gains in early Thursday trading, building on the best day for the S&P 500 since the November election, as investors added to bets that slowing inflation and a solid domestic economy will continue to drive stocks higher into the new year.
Updated at 7:16 AM EST
America's bank
Bank of America (BAC) followed its Wall Street rivals by riding a rebound in fourth quarter dealmaking to boost its overall profits.
The lender posted better-than-expected December quarter earnings of 82 cents per share, with investment banking revenues rising 44% to $1.7 billion
"Every source of revenue increased, and we saw better than industry growth in deposits and loans," CEO Brian Moynihan said. "This broad momentum sets up 2025 very well."
Bank of America shares were marked 1% higher in premarket trading to indicate an opening bell price of $47.55 each.
BREAKING: $BAC reports Q4 2024 financial results. https://t.co/A1zKBXkNxP pic.twitter.com/8k51yWCi4x
— Bank of America (@BankofAmerica) January 16, 2025
Updated at 6:40 AM EST
Beyond Target
Target (TGT) shares jumped higher after the retailer posted early holiday-quarter sales data that firmly topped Wall Street forecasts.
Target said same-store sales were up 1.5% over the three months ending in December, well ahead of the Street's 0.2% estimate, with combined sales over the final two months rising 2%, with record sales over the Black Friday and Cyber Monday periods.
The group also said it sees adjusted earnings of between $8.30 and $8.90 per share with overall revenues rising 2% from the prior-year period.
"Our team delivered continued traffic growth and better-than-expected holiday-season performance, thanks to their focus on serving guests with an inspiring, easy, and joyous shopping experience," said CEO Brian Cornell.
Target shares were marked 4.8% higher in premarket trading to indicate an opening bell price of $141.02 each.
$TGT | Target Sees Q4 Comp sales +1.5% Saw 0% (est 0.18%)
— LiveSquawk (@LiveSquawk) January 16, 2025
- Still Sees Q4 Adj EPS 1.85 To $2.45 (est $2.19)
- Still Sees Fy Adj Eps $8.30 To $8.90 (est $8.67)
Stock Market Today
The S&P 500 rose 1.83% in a torrid session on Wednesday, with the Dow Jones Industrial Average rising more than 700 points, following the first pullback in core inflation in more than six months paired with better-than-expected fourth quarter earnings from the country's biggest banks.
The December inflation report, which included modest upticks in headline pressures but muted readings in core prices, loped more than 10 basis points from benchmark 10-year Treasury bond yields and reignited bets on a second Federal Reserve rate cut before the end of the year.
The paper was last marked steady at 4.657%, with 2-year notes trading at 4.257%, heading into another busy calendar with jobless claims and December retail sales data due at 8:30 am Eastern time.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was also holding steady at 109.081 after falling around 0.6% over the whole of the Wednesday session.
Related: Inflation data tames key headwind for S&P 500, Fed interest rate cuts
Wall Street is also likely to focus on the confirmation hearing for President-elect Donald Trump's choice for U.S. Treasury Secretary, Scott Bessent, who faces the Senate Finance Committee at 10:30 am Eastern time.
Bessent, a former hedge fund manager, said in prepared remarks released last night that it is "critical (to) ensure that the U.S. dollar remains the world's reserve currency."
Heading into the start of the trading day, futures contracts tied to the S&P 500 suggest a 22 point opening bell gain, while those linked to the Dow are priced for a 100 point bump.
The tech-focused Nasdaq is called 110 points higher, with solid early gains for Nvidia (NVDA) and other chipmakers providing and early boost following record profits from Taiwan Semiconductor Manufacturing, the world's biggest chip contractor.
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In Europe, the region-wide Stoxx 600 rose 0.74% in Frankfurt to trade at the highest levels in 5 weeks, powered by chip and luxury goods stocks, while Britain's FTSE 100 was marked 0.77% higher in London.
Overnight in Asia, Wall Street's sharp rally lifted the region-wide MSCI ex-Japan index 1.27% higher into the close of trading, while the Nikkei 225 rose 0.33% on the session in Tokyo.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
