The S&P 500 and Nasdaq ticked up on Thursday, buoyed by strong earnings reports from major companies, while investors awaited President Donald Trump’s next policy moves and a key jobs report on Friday.
Strong Earnings Fuel Market Gains
Several companies posted upbeat results, providing relief to markets:
- Eli Lilly (LLY) rose 4% after forecasting annual profits above estimates.
- Tapestry (TPR), the parent company of Coach, surged 12.3% after raising its annual sales and profit outlook.
- Philip Morris International (PM) climbed 9.4% on a strong earnings beat and an optimistic 2025 profit forecast.
Meanwhile, Honeywell (HON) fell 6.3% after announcing plans to split into three companies and issuing a disappointing 2025 forecast, dragging down the Dow.
Market Performance
At 11:26 a.m. ET, major indexes were mixed:
- Dow Jones: -75.92 points (-0.17%) to 44,797.36
- S&P 500: +14.66 points (+0.24%) to 6,076.14
- Nasdaq Composite: +42.11 points (+0.21%) to 19,734.44
Seven of the 11 S&P 500 sectors traded higher, led by consumer staples and financials.
Trade Tariffs and Market Uncertainty
Markets saw a weak start to the week following Trump’s announcement of sweeping trade tariffs. However, the situation improved after he suspended tariffs on goods from Mexico and Canada for one month.
Despite lingering uncertainty, Wall Street found relief in the lack of immediate retaliatory measures from China.
“We are in the calm before the next storm. Market moves will continue to be driven by geopolitical risks,” said Scott Helfstein, head of investment strategy at Global X ETFs.
Investors Await Jobs Data and Fed Decision
The January nonfarm payrolls report, due Friday, is a key indicator for the labor market and could influence the Federal Reserve’s rate policy.
While the Fed is expected to hold rates steady at its March meeting, traders anticipate a rate cut in June, according to the CME FedWatch tool.
Big Movers: Skyworks, Qualcomm, Ford Tumble
Several high-profile stocks saw significant declines:
- Skyworks Solutions (SWKS) plunged 23.9% after forecasting declining revenue in its mobile segment.
- Qualcomm (QCOM) fell 4.7% as executives said its patent-licensing business wouldn’t see growth in 2025.
- Ford Motor (F) dropped 6% after warning of up to $5.5 billion in losses in its EV and software divisions.
Stock Market Breadth
Advancing stocks outnumbered decliners by a:
- 1.36-to-1 ratio on the NYSE
- 1.13-to-1 ratio on the Nasdaq
The S&P 500 recorded 30 new 52-week highs and seven new lows, while the Nasdaq Composite saw 101 new highs and 58 new lows.
Conclusion
While earnings reports lifted investor sentiment, geopolitical risks and economic uncertainty remain key market drivers. Traders are watching for Trump’s next trade policy move and the January jobs report to gauge the outlook for interest rates and economic growth.