March S&P 500 E-Mini futures (ESH25) are down -0.20%, and March Nasdaq 100 E-Mini futures (NQH25) are down -0.49% this morning, taking a breather after a strong rally this week, with investors turning their attention to U.S. President Donald Trump’s speech at the World Economic Forum in Davos and a new round of corporate earnings reports.
In yesterday’s trading session, Wall Street’s main stock indexes ended higher, with the benchmark S&P 500 rising to a new record high and the blue-chip Dow and tech-heavy Nasdaq 100 notching 5-week highs. Netflix (NFLX) surged nearly +10% and was the top percentage gainer on the S&P 500 after the streaming giant reported stronger-than-expected Q4 results, raised its 2025 revenue guidance, and announced a $15 billion boost to its share repurchase program. Also, Oracle (ORCL) climbed more than +6% following the announcement of the $500 billion “Stargate” AI infrastructure project. In addition, Procter & Gamble (PG) gained over +1% after the company posted better-than-expected FQ2 results. On the bearish side, Johnson & Johnson (JNJ) fell nearly -2% after reporting weaker-than-expected Q4 MedTech sales.
Economic data released on Wednesday showed that the Conference Board’s leading economic index for the U.S. fell -0.1% m/m in December, in line with expectations.
Meanwhile, market participants are looking ahead to U.S. President Donald Trump’s keynote address at the World Economic Forum in Davos, Switzerland, later in the day. They will listen closely for further details on Trump’s plans to introduce tariffs on goods imported to the U.S.
“Markets are reacting positively to the initial wave of Trump policies, with investors showing enthusiasm reminiscent of the run-up to the election as they breathe a sigh of relief over the tariff announcements and the early stages of earnings season,” said Mark Hackett at Nationwide.
The fourth-quarter earnings season picks up pace, and investors await new reports from notable companies today, including GE Aerospace (GE), Texas Instruments (TXN), Union Pacific (UNP), American Airlines (AAL), Intuitive Surgical (ISRG), Elevance Health (ELV), and CSX Corp. (CSX). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +7.5% increase in quarterly earnings for Q4 compared to the previous year.
On the economic data front, investors will focus on U.S. Initial Jobless Claims data, which is set to be released in a couple of hours. Economists forecast this figure to arrive at 221K, compared to last week’s number of 217K.
U.S. Crude Oil Inventories data will be released today as well. Economists estimate this figure to be -0.1M, compared to last week’s value of -2.0M.
U.S. rate futures have priced in a 99.5% chance of no rate change at next week’s monetary policy meeting.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.632%, up +0.72%.
The Euro Stoxx 50 Index is down -0.11% this morning, taking a breather following a seven-session winning streak that had pushed the benchmark index to highs not seen since 2000, fueled by robust corporate earnings and expectations of additional interest rate cuts from the European Central Bank. Technology stocks led the declines on Thursday. Statistical agency Insee reported on Thursday that sentiment among French manufacturers worsened in January, affected by global economic uncertainty and domestic political strife. Meanwhile, the World Economic Forum in Davos remains in focus, with President Trump set to address attendees via video call later today. Investors are also awaiting Eurozone consumer confidence data for January later in the session. In corporate news, Puma Se (PUM.D.DX) plunged over -17% after the German sportswear company reported weaker-than-expected annual profit and announced a cost-cutting program. Also, Essity Ab (ESSIB.S.DX) slid more than -5% after the Swedish hygiene products maker posted Q4 core earnings that missed analyst expectations.
France’s Business Survey was released today.
The French January Business Survey stood at 95, weaker than expectations of 96.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.51%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.79%.
China’s Shanghai Composite Index closed higher today following reassurances from the country’s officials about the government’s commitment to supporting the market and boosting share prices. Brokerage and insurance stocks gained ground on Thursday. The gains followed the announcement of a new plan led by six financial regulators, including the securities regulator, urging state-owned insurers and mutual funds to increase their equity holdings. Under the plan, major state-owned insurance companies will be encouraged to allocate 30% of their new annual premiums to China’s A-shares market. Wu Qing, head of the China Securities Regulatory Commission, stated at a press conference that the plan will attract at least hundreds of billions of yuan in new capital annually from state-owned insurers. The plan also includes guiding mutual fund managers to boost equity funds under their management. Meanwhile, the benchmark index initially moved sharply higher following the announcement but then gave up some of its gains due to lingering investor concerns about U.S. tariff risks and domestic economic growth prospects. Earlier in the week, U.S. President Donald Trump said that his administration was considering levying a 10% punitive duty on Chinese imports as soon as next month due to ongoing shipments of fentanyl from China to the U.S. via Mexico and Canada.
Japan’s Nikkei 225 Stock Index closed higher and hit a 2-week high today amid risk-on sentiment. Technology and electronics stocks outperformed on Thursday. Government data released on Thursday showed that Japanese exports increased for the third consecutive month in December, reaching a record high due to robust demand for chip-making machines and electronic parts, while imports also experienced growth. Meanwhile, investor focus is now squarely on the Bank of Japan’s monetary policy decision. The BOJ is widely expected to hike interest rates by 25 basis points to the highest level since 2008 at the conclusion of its two-day policy meeting on Friday, as the central bank continues its steady path toward normalization. In corporate news, SoftBank Group climbed over +5%, extending yesterday’s gains after Trump named the tech start-up investor as a participant in the “Stargate” AI joint venture. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.71% to 20.64.
The Japanese December Trade Balance has been reported at 130.9B yen, stronger than expectations of -55.0B yen.
The Japanese December Exports arrived at +2.8% y/y, stronger than expectations of +2.3% y/y.
The Japanese December Imports stood at +1.8% y/y, weaker than expectations of +2.6% y/y.
Pre-Market U.S. Stock Movers
Electronic Arts (EA) plunged over -13% in pre-market trading after the company reported weaker-than-expected preliminary Q3 results and cut its full-year net bookings guidance.
AST SpaceMobile (ASTS) slumped more than -15% in pre-market trading after announcing a convertible note offering of $400 million.
Vince Holding (VNCE) soared about +56% in pre-market trading after P180 agreed to acquire a majority stake in the global contemporary retailer from the affiliates of Sun Capital Partners.
Alaska Air Group (ALK) rose over +4% in pre-market trading after reporting upbeat Q4 results and forecasting a smaller-than-expected loss for the current quarter.
Knight-Swift Transportation (KNX) gained more than +3% in pre-market trading after the trucking company posted better-than-expected Q4 adjusted EPS and gave solid adjusted EPS guidance for Q1 and Q2.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - January 23rd
Intuitive Surgical (ISRG), GE Aerospace (GE), Texas Instruments (TXN), Union Pacific (UNP), Elevance Health (ELV), CSX (CSX), Freeport-McMoran (FCX), Chunghwa Telecom (CHT), Northern Trust (NTRS), McCormick&Co (MKC), East West Bancorp (EWBC), American Airlines (AAL), MakeMyTrip (MMYT), South State (SSB), Old Republic (ORI), Alaska Air (ALK), SLM (SLM), Columbia Banking (COLB), Glacier (GBCI), TAL Education (TAL), GATX (GATX), Valley National (VLY), Associated Banc-Corp (ASB), Texas Capital (TCBI), Eastern Bankshares (EBC), First Bancorp (FBP), OSI Systems (OSIS), Atlantic Union (AUB), Banc of California (BANC), First Financial Bancorp (FFBC), WNS Holdings (WNS), Pacific Premier (PPBI), Customers Bancorp (CUBI), 1st Source (SRCE), Dime Community (DCOM), Byline Bancorp (BY), Amalgamated Bank (AMAL), OceanFirst (OCFC), Novagold (NG), Heritage Financial Co (HFWA), Business First (BFST), Covenant (CVLG), Metropolitan Bank (MCB), MarineMax (HZO), MidWestOne (MOFG), Five Point (FPH), LSI Industries (LYTS), Midland States Banc (MSBI), US Century Bank (USCB), West Bancorporation (WTBA), First Bank (FRBA), First Western Financial (MYFW), SB Financial (SBFG).
