US stocks were mixed on Thursday, with the major indexes hoping to build on the previous day’s surge as investors assessed another round of big bank earnings and a fresh reading on retail sales.
The S&P 500 (^GSPC), the tech-heavy Nasdaq Composite (^IXIC), and the Dow Jones Industrial Average (^DJI) all meandered slightly above the flatline in early trading.
Markets are still enjoying some relief from a surprise easing in consumer inflation that prompted questions about whether the pricing out of interest-rate cuts this year had gone too far. Stocks ripped higher on Wednesday on the back of the data and stellar earnings from major US lenders.
Traders have now ramped up bets that the Federal Reserve lowers rates before July, reversing the pile-out that was sparked by the stronger-than-expected December jobs report.
Retail sales for December grew by 0.4%, versus expectations of 0.6%. The monthly gain slowed from November’s 0.7% increase. Weekly jobless claims rose more than expected to 217,000, versus the prior week’s upwardly revised 203,000.
Meanwhile, Bank of America (BAC) results showed fourth quarter profit more than doubled as the bank benefitted from a Wall Street dealmaking revival that has also boosted earnings at its rivals. Its shares were up slightly in early trading. Morgan Stanley’s (MS) stock also rose after it posted a surge in quarterly profit before the bell.
Elsewhere in earnings, UnitedHealth’s fourth quarter revenue fell short of estimates, dented by weakness in its health insurance unit. The stock slid in early trading.
An upbeat sales outlook from Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) boosted optimism for AI hardware demand this year. The main chip supplier to Nvidia (NVDA) and Apple (AAPL) on Thursday booked a 57% rise in net profit to hit a quarterly record. TSMC shares popped over 5% after its earnings report, while Nvidia stock added 1%.
