In Fed-focused week, some key US company results
Main U.S. indexes green, Dow out front, up ~0.7%
Utilities lead S&P sector gainers; Energy down most
Dollar edges up; gold gains; crude down; bitcoin falls >2%
U.S. 10-Year Treasury yield rises to ~4.58%
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IN FED-FOCUSED WEEK, SOME KEY US COMPANY RESULTS
While the big news this week may have come from the Federal Reserve, investors are also getting some key earnings reports that could give them some clues about the U.S. fourth-quarter reporting period.
Micron Technology MU.O shares are down about 16% on Thursday after it issued a disappointing quarterly forecast late Wednesday, while shares of Lennar LEN.N are down more than 5% on Thursday after it late Wednesday reported fourth-quarter results below expectations.
Both FedEx FDX.N and Nike NKE.N are due to report quarterly results after the closing bell on Thursday.
"While Fed policy is crucial because it directly influences future earnings and stock prices, it is far from the only factor driving markets," Nick Raich, CEO of The Earnings Scout, wrote.
Stocks sold off sharply on Wednesday in the wake of the central bank's signaling it may deliver fewer rate cuts in 2025 than it had earlier projected.
The bulk of S&P 500 results on the final quarter of 2024 begin after mid-January.
Analysts are expecting a 9.6% year-over-year increase in fourth-quarter earnings, according to LSEG data as of last Friday.
That's slightly better than the 9.1% earnings growth for the third quarter, but below the second quarter's 13.2% growth, based on LSEG data.
With the S&P 500 .SPX still up roughly 24% year to date, investors are worried whether future earnings growth will be strong enough to support more gains.
(Caroline Valetkevitch)
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FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:
POWELL IS WALKING A TIGHTROPE WITH FED RATE CUT, SAYS LAZARD'S RON TEMPLE - CLICK HERE
POST-FED HANGOVER DATA: GDP, HOME SALES, JOBLESS CLAIMS, ET AL - CLICK HERE
IS IT TIME TO REEVALUATE THE FED’S INFLATION MANDATE? - CLICK HERE
U.S. INDEXES RECOVER A BIT AFTER FED DAY SELLOFF - CLICK HERE
BITCOIN IN SEARCH OF SANTA RALLY AFTER FED-FUELED SELLOFF - CLICK HERE
S&P 500 INDEX WALLOPED, BUT IS IT WASHED OUT? - CLICK HERE
HERE COMES THE BOE - CLICK HERE
GOLD: STILL A GOOD CHRISTMAS GIFT - CLICK HERE
FED SENDS STOXX 600 TO NEAR THREE-WEEK LOW - CLICK HERE
EUROPE BEFORE THE BELL: FUTURES SLIDE ON FED OUTLOOK - CLICK HERE
JAPAN HOLDS, BANK OF ENGLAND UP NEXT -CLICK HERE
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