Upcoming Earnings Reports
Additionally, next week promises significant developments, as five of the “Magnificent Seven” – Apple, Microsoft, Amazon.com, Alphabet, and Meta Platforms – are scheduled to release their earnings reports. The market eagerly anticipates these updates, which will undoubtedly impact investor sentiment and market performance.
Implications for Chipmakers and Wall Street
Continuing the trend, chipmaking tools maker KLA Corp’s third-quarter revenue forecast fell below expectations, resulting in a 3.4% decline in its stock value. Despite this setback, the chip and technology sectors have experienced a recent resurgence, reviving the Wall Street rally. These sectors had initially lost momentum earlier this year after impressive gains in 2023. However, uncertainty surrounding the timing of interest-rate cuts this year has left investors grappling with concerns.
The S&P 500 closed at a record high for the fifth consecutive session on Thursday, fueled by robust fourth-quarter U.S. economic growth. This remarkable performance effectively dismissed fears of an imminent recession following the Federal Reserve’s aggressive rate hikes. As a result, all three major indexes are on track for their third consecutive week of gains, marking their 12th weekly advance out of the past 13.
Market Index Trends
At 8:49 a.m. ET, Dow e-minis experienced a minor dip of 4 points, or 0.01%. In contrast, S&P 500 e-minis rose by 4 points, or 0.08%, indicating a positive start to the day. Nasdaq 100 e-minis, on the other hand, dipped by 29.5 points, or 0.17%. Overall, market sentiment remains relatively stable, with investors closely monitoring major companies such as American Express, which projected a higher-than-expected annual profit, and Visa, whose tepid current-quarter revenue growth forecast overshadowed an earnings beat.
T-Mobile faced disappointment as it fell short of fourth-quarter profit expectations, resulting in a 1.9% decline in its stock value. Conversely, Sweden-based Autoliv experienced a gain of 2.3% after reporting fourth-quarter operating profit above expectations.