Upbeat Earnings News May Lead To Strength On Wall Street
22 Janeiro 2025 - 1:11PM
IH Market News
The major U.S. index futures are currently
pointing to a higher open on Wednesday, with stocks likely to add
to the gains posted in the previous session.
Early buying interest is likely to be generated in reaction to
upbeat earnings news from big name companies such as Netflix
(NASDAQ:NFLX), Procter & Gamble (NYSE:PG) and Travelers (NYSE
TRV).
Shares of Netflix are surging by 14.6 percent in pre-market
trading after the streaming giant reported fourth quarter results
that exceeded analyst estimates on both the top and bottom lines.
The company also said it is raising prices after a jump in
subscribers during the quarter.
Consumer goods giant Procter & Gamble is also seeing notable
pre-market strength after reporting better than expected fiscal
second quarter results.
Shares of Travelers are also jumping by 5.8 percent in
pre-market trading after the insurance giant reported fourth
quarter results well above analyst estimates.
On the other hand, shares of Johnson & Johnson (NYSE JNJ)
may move to the downside after the drug giant reported better than
expected fourth quarter results but provided disappointing sales
guidance for 2025.
After a positive start, U.S. stocks largely kept moving higher
on Tuesday, and the major averages all ended the day’s session on a
firm note. A drop in bond yields and optimism about a few interest
rate cuts this year contributed to the positive sentiment in the
market.
The Dow closed up 537.98 points or 1.2 percent,
at 44,025.81. The S&P 500 ended higher by 52.58 points or 0.9
percent, at 6,049.24, while the Nasdaq settled at 19,756.78,
gaining 126.58 points or 0.6 percent.
Investors picked up stocks as worries about tariffs eased a bit
as Donald Trump, who signed a slew of executive orders on Monday
soon after being sworn in as the 47th President of United States,
refrained from signaling trade barriers against China. He
threatened to impose tariffs of up to 25 percent on Mexico and
Canada but did not enact a policy.
Oracle surged nearly 7.5 percent, buoyed by reports that Trump
will announce private sector investment of up to $500 billion to
fund artificial intelligence infrastructure.
Charles Schwab climbed nearly 6 percent on strong earnings news.
3M moved up sharply, buoyed by stronger than expected quarterly
earnings.
General Motors, Moderna, Dollar General, Micron Technology,
Southwest Airlines, Alaska Air, Delta Airlines, Caterpillar, Nike,
Starbucks and United Airlines Holdings gained 3 to 5 percent.
Nvidia, Boeing, Amazon, Target, Eli Lilly, US Bancorp, American
Express and Netflix were among the other notable gainers in the
session.
Walgreens Boots Alliance tanked nearly 10 percent, weighed down
by the Department of Justice’s lawsuit against the company. The
company, which made a multibillion-dollar settlement over opioid
prescriptions two years ago, now faces a suit that alleges it
dispensed “millions of unlawful prescriptions.”
Apple Inc. shares declined sharply following a series of
downgrades due to weak iPhone sales and somewhat disappointing
performance in hardware and services segments.
Chevron, Merck, Lennar and Booking Holdings were some of the
other notable losers.
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