The major U.S. index futures are currently
pointing to a higher open on Friday, with stocks likely to add to
the gains posted during yesterday’s volatile session.
Apple (NASDAQ:AAPL) may help lead an early advance on Wall
Street, as the tech giant is surging by 4.3 percent in pre-market
trading,
The jump by shares of Apple comes after the company reported
fiscal first quarter results that exceeded analyst estimates on
both the top and bottom lines.
Semiconductor giant Intel (NASDAQ:INTC) is also seeing
pre-market strength after reporting fourth quarter earnings that
exceeded analyst estimates.
Early buying interest may also be generated in reaction to a
closely watched Commerce Department report showing consumer prices
in the U.S. increased in line with economist estimates in the month
of December.
The Commerce Department said its personal consumption
expenditures (PCE) price index rose by 0.3 percent in December
after inching up by 0.1 percent in November. The increase matched
expectations.
The annual rate of growth by the PCE price index accelerated to
2.6 percent in December from 2.4 percent in November, which was
also in line with estimates.
Excluding food and energy prices, the core PCE price index crept
up by 0.2 percent in December following a 0.1 percent uptick in
November. The core price growth also matched expectations.
The annual rate of growth by the core PCE price index in
December came in at 2.8 percent, unchanged from the two previous
months and in line with estimates.
The inflation readings, which are preferred by the Federal
Reserve, were included in a report on personal income and
spending.
Stocks saw considerable volatility over the course of the
trading session on Thursday, with the major averages showing wild
swings back and forth across the unchanged line before eventually
closing in positive territory.
The Dow climbed 168.61 points or 0.4 percent to 44,882.13,
ending the day within striking distance of the record closing high
set in early December.
The S&P 500 also advanced 31.86 points or 0.5 percent to
6,071.17, while the Nasdaq rose 49.43 points or 0.3 percent to
19,681.75.
The major averages moved sharply lower late in the session after
President Donald Trump said he would follow through on his threat
to impose 25 percent tariffs on imports from Canada and Mexico on
Saturday, February 1st.
However, the major averages rebounded going into the close,
reflecting the significant volatility seen throughout the
session.
The choppy trading on the day came amid a mixed reaction to
earnings news from several big-name companies.
Shares of IBM Corp. (NYSE:IBM) skyrocketed by 13.0 percent after
the tech giant reported fourth quarter earnings that exceeded
analyst estimates.
Facebook parent Meta Platforms (NASDAQ:META) also posted a
notable gain after reporting fourth quarter results that beat
estimates on both the top and bottom lines.
On the other hand, shares of Microsoft (NASDAQ:MSFT) plunged by
6.2 percent after the software giant reported better than expected
fiscal second quarter results but provided disappointing revenue
guidance for the current quarter.
Delivery giant UPS (NYSE:UPS) also showed a substantial move to
the downside, plummeting by 14.1 percent after reporting fourth
quarter earnings that beat expectations but forecasting full-year
revenue below analyst estimates.
UPS also announced it has reached an agreement with Amazon
(NASDAQ:AMZN) to lower its volume by more than 50 percent by the
second half of 2026.
In U.S. economic news, the Commerce Department released a report
showing U.S. economic growth in the fourth quarter of 2024 slowed
by more than expected.
Gold stocks moved sharply higher as the price
of the precious metal reached highs, driving the NYSE Arca Gold
Bugs Index up by 4.1 percent to its best closing level in well over
a month.
Interest rate-sensitive utilities and housing stocks also saw
considerable strength, with the Dow Jones Utility Average and the
Philadelphia Housing Sector Index surging by 2.4 percent and 2.3
percent, respectively.
Significant strength was also visible among semiconductor
stocks, as reflected by the 2.3 percent jump by the Philadelphia
Semiconductor Index.
Networking, airline and pharmaceutical stocks also saw notable
strength, while the steep drop by Microsoft weighed on the software
sector.
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